Innovation comes in many degrees, and most large corporations excel at incremental innovation: improving their products to better meet customer demand and/or at lower cost. In the following, we refer to innovation in the sense of non-incremental innovation: bigger leaps than routine R&D efforts yield.
Today, the difficulties of corporations with such innovation is well understood. Why should business line executives spend substantial budgets on risky adventures when they are measured by meeting their revenue and profit targets? Innovation attempts carry substantial risk, and the risk-reward ratio of innovation is, for most operational business managers, unmotivating. On the other hand, innovation is undoubtedly key to a company’s long term survival.
How critical innovation is to survival can be seen every year, and it hit many innovation leaders of yesterday: Nokia, Hewlett-Packard, Blackberry, to name a few. Even former Silicon Valley stars are not spared: Sun Microsystems (now part of Oracle), Hewlett-Packard, and Yahoo (for sale) are examples.
An innovation strategy helps to ensure a company’s long term success.
An innovation strategy is a plan to grow or protect a company’s business through product, service, or business model innovation. Good innovation strategies promote alignment among different groups within an organization, clarify objectives and priorities, and help focus efforts around them. We support clients to develop an innovation strategy that matches their goals as well as their internal and external constraints.
The right innovation approach depends on many aspects: the relevant market and it’s growth rate, it’s competitive pressure, it’s susceptibility to disruption, it’s key success factors, and it’s regulatory environment; the company and it’s organization, it’s processes, it’s culture, and it’s people; the company’s partners, locations, and access to resources; and the company’s customers, customer’s relations, and brand. Innovation means the commercially successful deployment of new products, services, and processes, possibly based on new business models. For this there is no one size fits all. We offer a structured approach to determine which innovation models provides the best fit to reach predefined innovation goals.