If less than 30% of your sales is coming from new product launches, your company may be in jeopardy of being overtaken by more innovation focused companies.
When innovation is done right it solves new problems or existing problems better for consumers, prompting people to move to new solutions.
Both fast growing tech companies and also more traditional companies need to innovate and stay in front of the competition. Organizations that fail to innovate effectively risk becoming less and less relevant to consumers and falling into a downward price discounting spiral.
Innovation Drives Growth
The "top 20%" of companies got 38% of their revenue and 42% of their profits from products launched in the last three years.
Source; Benchmarking Best Practices Performance Results & the Role of Senior Management. R Cooper & S Edgett.