Leading suppliers know that their success rests on the ability to produce a continuous flow of innovations. The Automotive News PACE Awards programs explores that question each year. Here's what an analysis of this year's finalists and winners showed. Six major trends drive the need for constant innovation. The Internet is breaking old boundaries, helping to free the industry from existing business practices and relationships.
Most applications are still in the fledgling state.
However, OEMs will soon make the Internet a viable sales channel, and Net-based applications will support innovation through more open communications and collaboration across the supply chain.s New Product Development Demands Beating competitors to market with new products that anticipate customers' desires is the key to winning business in today's dynamic marketplace. Leading suppliers are looking for ways to innovate the new product development process, because it is the wellspring of their future market leadership. Supply Chain Cost Reduction Innovations are also needed to help drive costs out of the entire supply chain. Innovation capabilities are particularly important as the supply chain consolidates down into fewer, more capable suppliers, each with greater program management authority. Connectivity Boundaries between industries, organizations, and functions are becoming blurred.