Introduction

Science and research may shape the future, but engineering transforms our world today. Engineering drives global growth by advancing technology, boosting productivity and improving efficiency across industries. Strong infrastructure reduces costs, enhances connectivity and opens up markets, while engineering projects promote international collaboration.

Engineering also addresses emerging threats, supporting sustainability, defense and global biosecurity efforts. The IMF’s 2024 World Economic Outlook stresses that engineering innovations are key to sustaining global economic momentum.

Those leading their companies’ engineering capability must prioritize the development of effective engineering innovation strategies to foster growth, but this task is increasingly complex and critical. The challenge is shaped by three key factors.

The first factor is the pace of change. The speed at which innovation occurs makes effective decision-making more difficult. Digital transformation, driven by advances in artificial intelligence, machine learning and the Internet of Things (IoT), is accelerating rapidly ^[4]. This evolution also extends to the physical world through innovations in materials science, nanotechnology and biotechnology. Engineering leaders must stay ahead of a constantly shifting technological landscape in both realms. The volume of information they receive today is overwhelming, compared to previous generations, and they must discern what is substantive versus speculative, adding complexity to their decision-making.

The second factor is the convergence of digital and physical innovation. This convergence reshapes industries, creating a multiplier effect where the combined impact of these innovations is greater than the sum of their parts.

For instance, semiconductor advancements are opening up new possibilities in biology and medicine. Engineering leaders face the dual challenge of staying ahead of rapid change and managing many potential advancements.

The third factor is unpredictable external forces. Engineering leaders must navigate an environment marked by rapid, unpredictable changes driven by societal demands, environmental concerns and global economic shifts^[5]. With the convergence of digital and physical innovation, new opportunities and threats can arise quickly, requiring technology leaders to remain agile and responsive.

The growth of different industries can be accelerated by layering branches of various technologies. This combinatorial approach harnesses advancements in each technology, creating a compound effect that drives progress.”

Jeremy Jurgens
Managing Director and Head of the WEF’s Centre
for the Fourth Industrial Revolution ^[5]

Three
influencing
factors

The power of engineering for strategic advantage

The high impact of these three factors makes it difficult for the technical C-suite to plan long-term strategies. But they are held to account on their ability to do so, regardless.

This is why engineering has been reinforced as an essential discipline that enables these leaders to navigate the shifting sands effectively. Its grounding in real world application, and its requirement to consider immediate consequences on people, processes and organizations makes it highly relevant to the pace of change. While fundamental science provides the theoretical foundation for technological advancements, it is engineering that converts these into practical applications, because it is inherently focused on solving real-world problems and achieving desired changes in the physical world. It is this relentless focus on effective application that makes engineering indispensable for those dealing with the convergence of digital and physical environments – and the use of technologies that work effectively in both.

The engineering
leader’s dilemma

To accommodate the three influencing factors above, engineering leaders must strike a difficult balance. They need an engineering innovation strategy that fosters a culture of innovation within their organizations, where engineering teams are empowered to experiment, iterate and develop cutting-edge solutions with the freedom to explore. Yet, they must simultaneously ensure that any engineering efforts driven by this strategy are aligned with the company’s overall business objectives and societal responsibilities, whilst also taking account of unpredictable external factors affecting the wider environment in which the company operates. Constantly navigating between these shifting sands is the essence of the engineering leader’s dilemma and they are understandably wary of making these tricky choices. Effective decisions are seldom reported – but bad ones can become the stuff of corporate folklore. Nokia’s decision to pass on the Google Android operating system and Kodak’s dogmatic adherence to physical film over digital imaging are strategic failures, driven by technical strategists that defined their corporate stories. It’s a challenging time for this cadre of executive leaders. How can they tackle the task in front of them?