Information Technology Foresight

The latest thinking on creating competitive advantage through information technology.

November 2016

Software-as-a-Catalyst: The 2016 Global Innovation 1000 Study

The race for differentiation in the digital age is on, which includes internet-enabling products. That requires software – causing many companies to adjust R&D budgets to include software development to enhance product performance, and developing services that can be sold along with their products.

43% — The increase in the proportion of R&D dollars allocated to software since 2010.

This issue of IT Foresight features Software-as-a-Catalyst: The 2016 Global Innovation 1000 Study, our 12th annual survey of R&D spending and innovation performance. This year’s edition looks closely at how software and services are transforming the innovation strategies in virtually every industry — even as innovation spending among the top 1000 companies in our study was flat in the past year.

Featured Foresights

2016 Global Innovation 1000 Study
Companies are shifting their R&D focus to software and services, which now account for almost 60 percent of all innovation spending. The desire to generate added value by embedding services into physical products is driving this change. But the implications are significant for companies not traditionally known for software development. Challenges include fitting software development into traditional R&D programs, finding the right software development talent, and creating and managing a culture suited to fast-moving software development cycles.
http://www.strategy-business.com/feature/Software-as-a-Catalyst?gko=7a1a
s+b article
Throughout its nearly 180-year history, John Deere has been an innovation leader. Its first product was a polished-steel plow that outperformed existing tools. And over the decades, the company’s research and development (R&D) efforts were aimed squarely at improving the mechanical and functional performance of its products.

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