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Mar 2005: Latest Imaginatik Research Study Finds Idea Central Yields Significant ROI on Innovation Initiatives

Quantitative Study of Imaginatik Customers Reports 251% Average First Year and 927% Average Second Year ROI

BOSTON—March 28, 2005—Imaginatik, the leading Idea and Innovation Management company, today released a study, “The Long Term Financial Benefits of Idea Management.” The report, authored by Imaginatik Research, examined the return on investment (ROI) of 17 businesses that have operated Imaginatik’s Idea Central Idea Management deployments for two years or more. Imaginatik’s customers include firms such as W.R.Grace, Georgia-Pacific, Bristol-Myers Squibb, Kraft, Dow Chemical and ChevronTexaco.

The study found average ROI in the first year of an Idea Central initiative was 251% with an average net return of $19,851 per 100 employees. The benefits and savings were magnified after year two to an average ROI of 927% and average net return of $104,983 per 100 employees.

“Executives like to talk about innovation, but most businesses do not have a firm understanding of what makes a successful innovation process, how much it costs them to innovate and how it impacts revenue,” said Mark Turrell, CEO of Imaginatik and Imaginatik Research. “Our research found businesses investing in Idea Central realized fast ROI with relatively low initial investment costs. The companies we examined leveraged the technology and a structured innovation process to drive growth and profitability.”

Businesses participating in the study represented a wide range of industries and markets including high tech/telecommunications, banking, chemicals, consumer products, government insurance, manufacturing, and oil & gas.

Most businesses studied realized significant measurable benefits from both revenue-focused activities such as new product development and product launch, and bottom line cost reduction programs.

“We used Idea Central to collect and evaluate ideas from 16,000 employees. One employee suggestion on how to more efficiently manufacture the cardboard tubes used in paper towel products reduced production costs by four percent per year," said Cedric Steele, director of innovation for Georgia-Pacific's retail business. "By identifying breakthrough ideas such as these, Imaginatik’s innovation process and technology has resulted in a significant return on investment for Georgia-Pacific.”

Study Methodology

The study considered all relevant costs associated with an Idea Central implementation: advisory services, manpower, process support, training, technology, reward & recognition, and internal marketing. The calculations covered internal costs, including people and IT resources, and external costs, including software license and associated process and consulting services. Estimates were made by the companies and by Imaginatik to approximate certain expenses, such as staffing costs. The benefits reported are based on the realized —not anticipated —financial returns attributed to the Idea Management project

To receive a copy of the study please e-mail research@imaginatik.com.
Imaginatik Research and executives from companies participating in the study are available for comment.

About Imaginatik

Imaginatik is the long-time leader in enterprise Idea Management. Its flagship solution, Idea Central, is designed to elicit ideas and insights from employees and extended enterprise partners, provide a shared collaborative space to develop ideas, and is equipped with sophisticated tools to evaluate and select the top ideas for implementation. Idea Central has won numerous awards, and is in use at clients such as Georgia-Pacific, W. R. Grace, ChevronTexaco, Bayer AG, and Goodyear Tire & Rubber. Imaginatik's software and services have helped clients discover significant sources of additional revenue, as well as tangible cost savings, process improvements and an increased product pipeline. Imaginatik is also committed to developing strategic solutions in the field of innovation working with academic institutions such as the London Business School and the Cass School of Business, London, and leading practitioners of corporate innovation.

Imaginatik and Idea Central are trademarks of Imaginatik plc.

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