Industry Clockspeed Monitoring
Industry clockspeed refers to the rate at which an industry or organization is able to bring new products or services to market. It is often used to describe how quickly a company is able to innovate and adapt to changing customer needs and market conditions. In general, industries with a high clockspeed are able to bring new products or services to market more quickly than industries with a low clockspeed.
There are several factors that can influence an industry's clockspeed, including the complexity of the products or services being developed, the level of competition within the industry, the availability of resources and technology, and regulatory and legal considerations. Some industries, such as the technology sector, tend to have a higher clockspeed due to the rapid pace of innovation and the short product life cycles in these markets. Other industries, such as pharmaceuticals or heavy manufacturing, may have a lower clockspeed due to the longer development times and regulatory requirements associated with bringing new products to market.
Over recent years, firms have started to digitize their internal processes and open up their innovation functions. Both developments drive a firm´s ability to innovate, leading to increasing innovation rates in various industries. Due to this development, the industry evolves into an ever more important zeitgeber/taktgeber for firms. Firms need to pace and synchronize their behaviors more strongly with those of their rivals if they do not want to risk falling behind. Using our news analytics capabilities, we have analyzed the new product introduction rates of industries and provide an overview of the accelerating pace of competition in these industries (c.f., Figure 6).
Figure 6: IndustryClockSpeeds (New Product Introductions) by Industries [SIC]
(Insurance Carriers , Chemicals and Allied Products , Business Services , Printing, Publishing, and Allied Industries )