《《Accenture_Outlook_Less_is_new_more_Innovation》.pdf

This article appears in the February 2010 issue of The journal of high-performance business Innovation Why less is the new more By Greg Cudahy, James M. Ellis and Paul F. Nunes Customers continue to demand greater value at ever-lower prices. But for many companies, the ability to produce savings through more traditional cost-cutting measures is nearly exhausted. The solution: Combine cost-cutting initiatives with design and development activities, using cost-driven product and service innovations to create new streams of profitable growth. By now, just about everyone has the business, attracting customers heard of the handful of shockingly through cost-driven innovation. low-cost products available—$2,500 They can look to provide, at one end cars, $100 laptops and $20 intra- of the price spectrum, ultra-low-cost European airfares. Less well known, but well-designed basic products. yet just as important, is how low-cost Near the high-price end, they can thinking is beginning to drive uncover ways of adding new features innovation across the entire spectrum at minimal cost. of industries, from medical devices to toys to package delivery. Cost innovato