Report finds innovation the answer to boosting NZ’s economy

Report finds innovation the answer to boosting NZ’s economy

New Zealand companies focus on new products and services to survive difficult business conditions

AUCKLAND – Tuesday 25 October, 2011. Companies are focused on developing new products and services in an endeavour to survive difficult economic times, according to Newport Consulting’s annual business survey of 242 New Zealand and Australian business leaders.

While the report, “Managing in a multi-speed economy: Current State of Play”, found a jump in the number of New Zealand companies who are less optimistic for this financial year (72% up from 59% last year), another finding is that companies are turning to innovation as part of their survival strategy.

Newport Consulting’s Managing Director, David Hand, notes the significant change in the business community’s mood over the last three years, since the report’s inception, especially the impact of rising costs on selling prices.

“There is no denying that companies are far less optimistic about the prospects for the economy as well as their individual business this year compared to the last two years,” David explained.

“This year, New Zealand companies are indicating that they can no longer absorb escalating business costs, unlike last year. Companies are also demonstrating great caution through their management strategies with operational performance, cost control and productivity rated as top priorities for business leaders.

“That is why it is encouraging to see innovation back on the agenda with business leaders planning to grow through development of new services and products in what is otherwise an increasingly pessimistic business environment.” David said.

“New Zealand needs to continue to embrace and encourage innovation as a way forward for not only business, but for the economy. Innovation should be a way of life for business and now that it’s back on the agenda, management need to ensure that they have the capability to capture and foster it as a unique and constantly changing way of doing business.” David concluded.

According to Newport Consulting, New Zealand companies must consider the following five key questions in order to capitalise on growth through new products and services:

• What is your go-to-market strategy and transactional business model for your new products or services?
• Can these new products and services link to the global market through participation in or support of exporting sectors?
• How can innovation create for business using the internet to capitalise on global market opportunities
• Are staff engaged around new products or services and is your team aligned to new strategic direction?
• What is your business strategy for realising this growth and are you operationally equipped to sustain it?

New products and services was followed by improved service, then increased sales with existing customers as the next two highest ranked sources of growth in the survey. Other opportunities identified by New Zealand business leaders for the financial year ahead include skills development (58%) and productivity (51%). ~ ENDS

About the Report - “Managing in a multispeed economy: Current State of Play” report is an annual study which tracks business confidence and management behaviour of Australia and New Zealand business. The sample comprised n=242 business leaders from SME to large companies who participated in an online survey between 1 June and 30 July, 2011 – full report is attached as a PDF. Newport Consulting (www.newportconsulting.co.nz is an operational management consulting company that assists organisations to improve their business productivity performance and has operations in New Zealand, Australia, South Africa and Asia.

ENDS

Scoop copy of report: Managing_in_a_multispeed_economy._Current_State_of_Play_Report_2011..pdf

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