Community Forum – How have your budgets changed?

A: How have your innovation and new product development budgets changed?

The current economic and inflationary environment, including a possible global recession, creates both challenges and opportunities for companies, R&D groups, and new product development and innovation groups. Over the past few weeks, IRI has reached out to you with questions focused on specific impacts as the economic situation evolves. The following questions seek to understand how IRI member companies are adjusting their budgets as a direct result of changes in the economic environment.

The results from this week’s survey are below.

Community Responses

4. What is the top challenge currently facing your innovation function and innovation outcomes because of the changing economic environment?

• Communicating ROI as justification for innovation funding in changing economic environment. Increasing infusion/transition velocity of innovation outcomes to prototype and concept testing
• Having the funds for H2 & H3 work.
• Implementation of savings measures, while keeping the R&D engine running
• Keeping innovation as a priority amongst operational priorities and potential risk of market changes – any new risk may be seen as an opportunity to de-prioritize innovation.
• Distributed previously centralized innovation function to product groups. Risk of some innovation activities with broader impact falling through cracks.
• The fact that many customers are resource constrained means the pace of testing and evaluation of new prototypes has slowed. Often we cannot fully evaluate the impact of our product in the customer’s application, which can leave us waiting on their action.
• Finding employees to fill gaps in new product development roles.
• No patience of top management for investment in products that don’t produce revenue in 12-18 months.
• Reduced capital and staffing after a recent reduction in force.

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