Based on its 125 year history of strategic consulting, Arthur D. Little today announced its Innovation Manifesto, predicting major changes in how companies and governments will innovate in the years to come. This need for innovation is driven by external factors such as ongoing globalization, the shift of economic gravity away from traditional Western countries, continuing economic uncertainty and changing and more individualized customer demands. Utilising Arthur D. Little’s wealth of knowledge and experience, the manifesto outlines five key concepts of innovation that companies can focus on in order to flourish in the next decade. These are:

1. Customer-based innovation – engaging with customers in deeper and more meaningful ways to create stronger relationships and stimulate a desire to be fully involved in the innovation process.
2. Proactive business model innovation – creating new ways of building innovative business models or reshaping existing ones, based on delivering lasting value to customers and stakeholders, using modular approaches to cope with global/local complexity and adapting business models to new markets.
3. Frugal innovation – originating new innovations in lower income, emerging markets and adapting these to more developed markets thus allowing companies to profit from the full spectrum of opportunity that different markets have to offer.
4. High speed/low risk innovation – getting products and services to market not just quickly, but without flaws through gradual product rollouts, global 24/7 product development and increased use of trials and experiments.
5. Integrated innovation – taking traditional innovation approaches from New Product Development such as portfolio optimization, ideas management and stage-gates and applying them across the whole value chain of the business.

Arthur D. Little believes that by adopting these models, organizations will be able to tackle key issues in their respective industries. Be it carbon/emissions reduction in the Automotive and Transport industry, renewable power in the Energy and Utilities sector or increased mobility that includes new communication requirements in the Telecoms & Media industry. As global competition intensifies success will lie in the ability to use these approaches for driving radical innovation to open up new and adjacent business areas, as well as innovating in existing areas.  For innovation, one thing is for certain; the age of the “one size fits all” approach has seen its last days. Founded in 1886, Arthur D. Little has an unparalleled history in helping deliver strategic innovation. Building on the motto – ‘Who says it can’t be done?’, the consultancy combines strategy, technology and innovation to provide consulting that meets business challenges now and in the future. Rick Eagar, Head of the UK Technology and Innovation Management Practice at Arthur D. Little comments, “Organizations and governments currently face unprecedented challenges and consequently need to adopt new forms of innovation in order to survive, and thrive. At Arthur D. Little innovation is part of our DNA, and we’ve used our experience, knowledge and market understanding to provide our manifesto for future success. The winners in the 21st century will be those that out-innovate their competition, whether they are companies, cities or even countries; united by the ability to arrive at ideas and concepts beyond the mainstream.” As part of its focus on innovation, Arthur D. Little recently undertook a major research study into emerging trends in innovation management, interviewing CIOs and CTOs from across the world. The study found that an increased focus on new business areas will drive future innovation strategies, combined with a major relocation of innovation capabilities to Asia and South America. The full report can be downloaded from

www.adl.com/InnovationManagement. Volker Kirchgeorg,  Director and Technology and Innovation Management Global Practice Leader at Arthur D. Little, comments, “We’ve spent the past 125 years committed to innovation and are incredibly excited about the possibilities the next 125 years offer. Marshaling these new approaches to innovation will require real focus and strategic vision – now is the time for major companies and government agencies to look at board level innovation directors to provide the impetus for the change and progress that they require.”