Innovation Management:

Innovation Strategies

A Framework for Strategic Innovation

Changing the Game and Generating Significant New Value for Customers and the Corporation

By InnovationPoint

 

 

Strategic Innovation Radical Innovation Incremental vs. Radical Innovation Strategic Innovation

Traditional Strategy versus Strategic Innovation

Traditional approaches

Strategic Innovation approach

Adopt a "present to future" orientation – takes today as a starting point

"Starts with the end in mind" – identifies long-term opportunities and then "bridges back to the present"

Assumes a rule-maker/taker (defensive/follower) posture

Assumes a rule-breaker (revolutionary) posture

Accepts established business boundaries / product categories

Seeks to create new competitive space / playing fields

Focus on incremental innovation

Seeks breakthrough, disruptive innovation – while continuing to build the core

Follow traditional, linear business planning models

Marries process discipline with creative inspiration

Seek input from obvious, traditional sources

Seeks inspiration from unconventional sources

Seek articulated customer needs

Seeks unarticulated customer needs

Are technology-driven (seek consumer satisfaction)

Is consumer-inspired (seeks consumer delight)

May have a "one-size-fits-all" organizational model

May experiment with entrepreneurial "new venture" or other organizational structures

7 Dimensions of Strategic Innovation

  1. A Managed Innovation Process – combining non-traditional and traditional approaches to business strategy... More

 

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Sustainable Growth

Strategies of Market Leaders

Corporate Capabilities

Core Competencies

Opportunity-driven Business Development

Creating Customer Value

Value Innovation

Innovation Management

Systemic Innovation

Innovation-friendly Organization

Continuous Innovation

Innovation System

Innovation-Adept Culture

Strategic Alignment

Organization and People

Innovation Leadership

Innovation Process

Innovation Metrics

Innovation Strategies

Venture Strategies

Radical versus Incremental Innovation

Radical Innovation

Innovation Portfolio

Intellectual Property Management

Strategic Planning

Strategic Thinking

Entrepreneurial Creativity

Thinking Outside-the-Box

Systematic Thinking

The Art and Discipline of Strategic Innovation

Strategic Innovation is the creation of growth strategies, new product categories, services or business models that change the game and generate significant new value for customers and the corporation.

Creating Customer Value: 9 Questions

Serendipitous versus Strategic Innovation

 

Many organizations reply on serendipitous acts of creativity to foster innovation. Others take an ad hoc unstructured approach, which often results in uninspired incremental improvements or poor implementation.

Strategic innovation is a holistic systematic approach focused on generating beyond incremental, breakthrough or discontinuous innovations. Innovation becomes "strategic" when it is an intentional repeatable process that creates a significant difference in the value delivered to consumers, customers, partners and the corporation. A Strategic Innovation initiative generates a portfolio of breakthrough business growth opportunities using a disciplined yet creative process.

Jazz of Innovation: 11 Practice Tips

A Holistic, Multidisciplinary Framework

This paper describes a holistic, multidisciplinary framework that enables organizations to take a strategic approach to innovation.

The framework combines non-traditional, creative approaches to business innovation with conventional strategy development models. It brings together perspectives from several disciplines: the non-traditional approaches to innovation found in the business creativity movement; traditional strategy consulting; the new product development perspective of industrial design firms; qualitative consumer/customer research; futures research found in think tanks and traditional scenario planning; and organizational development (OD) practices that examine the effectiveness of an organization’s culture, processes and structures.

Systemic Innovation: 7 Areas

The framework consists of a cohesive set of practices that inspire imaginative teams to look beyond the obvious, explore a broad range of possibilities, identify significant opportunities, make informed decisions about the most promising paths to pursue, create a shared vision for growth, define pragmatic action plans that “bridge from the future back to the present” and align the organization around the requirements for success.

Strategic Innovation takes the road less traveled – it challenges an organization to look beyond its established business boundaries and mental models and to participate in an open-minded, creative exploration of the realm of possibilities.

Some organizations may feel that seeking breakthroughs is too grandiose a goal, and that they would be content with “simply growing the business”. Experience shows, however, that focusing on the short-term typically yields only short-term results – while teams aspiring to seek significant breakthroughs will both identify “big ideas” and also generate closer-in, incremental ideas.

Blue Ocean vs. Red Ocean Strategy

Strategic Innovation is not characterized by mundane, incremental product extensions, the “me-too” business models of close followers, or band-aids for inefficient processes. It does not consist of simple “facilitated creativity sessions and brainstorming new ideas”. It is not based on the linear principles of traditional strategic planning which extrapolate the past in an attempt to predict the future. It does not result in “pure blue sky”. Instead, it spans a journey of inquiry and activity – from creative inspiration at the ambiguous “fuzzy front end” through the detailed requirements of successful execution that lead to business impact.

 

Strategic Innovation calls for a holistic approach that operates on multiple levels. First, it blends non-traditional and traditional approaches to business strategy, deploying the practices of “Industry Foresight”, “Consumer/Customer Insight” and “Strategic Alignment” as a foundation, and supplementing them with conventional consulting models. Second, it combines two seemingly paradoxical mindsets: expansive, visionary thinking that imaginatively explores long-term possibilities; and pragmatic, down-to-earth implementation activities that lead to short-term, measurable business impact.

7 Dimensions of Strategic Innovation

The Strategic Innovation framework weaves together seven dimensions to produce a range of outcomes that drive growth.

A Managed Innovation Process lies at the core of the approach. By facilitating the interplay between external perspectives and an organization's internal capabilities / practices – and by looking beyond the obvious – it is possible to inspire the corporate imagination to explore a diverse array of new possibilities.

The process is designed and managed to create Strategic Alignment – the enthusiastic internal support among key stakeholders required to galvanize an organization around shared visions, goals and actions.

Industry Foresight provides a "top-down" perspective that seeks to understand the complex forces driving change, including emerging and converging trends, new technologies, competitive dynamics, potential dislocations and alternative scenarios.

Consumer/Customer Insight provides a "bottom-up" perspective, a deep understanding of both articulated (explicitly stated) and unarticulated (latent or unrecognized) needs of existing and potential consumers/customers.

Core Technologies and Competencies is the set of internal capabilities, organizational competencies and assets that could potentially be leveraged to deliver value to customers, including technologies, intellectual property, brand equity and strategic relationships.

A company's Organizational Readiness may drive or inhibit its ability to act upon and implement new ideas and strategies, and to successfully manage operational, political, cultural and financial demands that will follow.

Innovation-friendly Organization

Lastly, success will be enabled or limited by an organization's capacity for effective, Disciplined Implementation.

An organization moves beyond an ad hoc approach to innovation when it begins develop and institutionalize a cultural mindset and a set of processes that support repeatable, Sustainable Innovation. This then becomes a foundation for ongoing competitive advantage.