A Shared View of Innovation
Engineers and executives now agree on a definition for innovation.
For the first time in the three years that we’ve conducted our survey, the majority of both engineers (56%) and executives (64%) see innovation as an iteration or improvement, rather than a total transformation. The change comes from a shift in executives’ perspective: In last year’s survey, the majority of executives (56%) defined innovation as a total transformation.
This alignment provides a strong foundation for pursuing strategic goals centered on product innovation, which remains the top priority for the majority of organizations (59%) to achieve by 2030.
However, due to economic pressures, financial goals have taken precedence over longer-term sustainability ambitions, likely driving organizations to emphasize cost saving initiatives in the near term.
Prioritizing 2030 goals
TE Takeaway
While innovation was once primarily associated with radical breakthroughs, companies aiming for sustainable growth in today's economy are increasingly focused on incremental improvements. These smaller technical iterations are essential for meeting fast-changing market demands. Major transformations like AI and the rise of electric vehicles have created significant business opportunities, and now, engineers are honing and refining these technologies. Because economic pressures demand a focus on efficiency, it is vital to commit to long-term value creation through strategic product advancement. At TE, we prioritize agile methods to stay responsive, using real-time feedback to continuously improve our offerings and capture new market opportunity. Ultimately, innovation thrives and technology advances when business and technical teams focus on creating exceptional products – even through small, iterative improvements. This allows us to not only anticipate and meet future market needs with superior product design and functionality but also to simultaneously lay the groundwork for future transformative innovations that could reshape the industry.
Chao Zhang
General Manager, TE China
Vice President, Human Resources, APAC