Innovation
strategic
management
Strategic innovation
Strategic innovation is an organization's process of
reinventing or redesigning its corporate strategy to
drive business growth, generate value for the company
and its customers, and create competitive advantage.
This type of innovation is essential for organizations
to adapt to the speed of technology change.
Types of Innovation
Business
Business refers to the process of
creating new or improved products,
services, processes, or business models
to meet changing customer needs, stay
competitive, and drive growth.
Organizational
Organizational
management refers to
the implementation of
new strategies,
systems, and practices
that result in
improved
performance,
increased efficiency,
and better results.
Process innovation
Process innovation is the
development and
implementation of new
methods, systems, or
technologies that improve the
way work is done within an
organization.
Technology innovation
Technology innovation refers to the
development and application of
new technologies to create new
products, services, or processes,
or to improve existing ones.
Marketing innovation Marketing innovation refers to
the development and
implementation of new
marketing strategies, tactics,
and tools that help organizations
to better understand and engage
with their customers, and to
differentiate themselves from
competitors.
Product innovation Product innovation refers
to the development and
introduction of new or
improved products or
services that better meet
customer needs, and/or
that create new markets or
opportunities for growth.
TYPES OF INNOVATION STRATEGIES
○ PROACTIVE
○ ACTIVE
○ REACTIVE
○ PASSIVE
DIMENSION OF STRATEGIC INNOVATION
1. A managed Innovation Process
- Covers the sequence of activities from the beginning of a scheme through implementation
implementation combining traditional and non traditional approaches to business strategy
2. Strategic Alignment
- Is the process of engaging a short- term leadership team, a broad crosssection of the organization, and
key external stakeholders in the development of a shared vision.
DIMENSION OF STRATEGIC INNOVATION
3. Industry Foresight
- Is a top down approach that explores the drivers, trends, enablers, and dislocations
within one or more industries.
4. Costumer Insight
- Is a qualitative, bottom up approach that leverages insights into the behaviors,
perceptions, and needs of the current potential consumers/costumers by involving the them as true
partners in the innovation process.
5. Core Technologies
- After having a clear idea of a consumer customer’s needs it is not only essential to
consider the organizations technologies but also other capabilities that are integral to success
DIMENSION OF STRATEGIC INNOVATION
6. Organizational Readiness
- It mainly refers to the ability to act upon and implement innovative ideas and strategies.
7. Disciplined Implementation
- Includes transition to specific projects or programs, technical product development and
design, etc.
AN EFFECTIVE STRATEGY CAN:
● Clarify Goals
● Foster Alignment
● Keep a business from resting on its laurel
● Help a business achieve a long term success
4 STEPS FOR DEVELOPING AN INNOVATION
STRATEGY
Align innovation with
business strategy
Successful innovation efforts
must be in step with your
overall business strategy
Determine your value
proposition
Your innovation strategy should
answer the questions of what unique
value you will bring to your market
and what types of innovations will
allow you to capture that value and
build a competitive advantage
Learn the unmet needs of The most successful
your costumer innovations will meet needs of
the costumers you want to
serve and to develop those
innovations, your business
must understand the needs.
Assess and adjust The best strategy plans are
always flexible. Take tie to
assess the effectiveness of
your innovation strategy by
crowdsourcing among
employees.
5 TYPES OF INNOVATION STRATEGIES
Strategic Management Process
Environmental Analysis: This involves gathering and
analyzing information about the external
environment in which the organization operates,
including economic, social, political, and
technological factors, as well as trends in the
industry and competitive landscape.
Internal Analysis: This involves gathering and
analyzing information about the internal strengths,
weaknesses, resources, and capabilities of the
organization, including its financial performance,
human resources, technology, and culture.
Importance of Innovation in
Strategic Management
Differentiation: Innovation can help organizations to develop products,
services, or business models that stand out from those of their
competitors, and that are perceived as more valuable or desirable by
customers. This can help organizations to command higher prices, to
attract and retain more customers, and to build stronger brand equity.
Cost Reduction: Innovation can help organizations to streamline
processes, reduce waste, and increase efficiency, which can lead to
lower costs and higher profitability. For example, innovations in supply
chain management, automation, and digitization can help
organizations to reduce costs and increase productivity.
Importance of Innovation in Strategic
Management
New Market Opportunities: Innovation can help organizations to identify
and capitalize on new market opportunities, such as emerging
technologies, changing consumer preferences, or shifts in industry
dynamics. By staying ahead of the curve, organizations can position
themselves to capture market share and generate new sources of
revenue.
Flexibility and Adaptability: Innovation can help organizations to be
more flexible and adaptable in response to changing market conditions
or customer needs. By embracing new technologies, processes, or
business models, organizations can pivot more quickly and effectively to
seize new opportunities or to address emerging threats.
Some examples of companies that have successfully
used innovation to create a sustainable competitive
advantage include
Apple: Apple has consistently been a leader in innovation,
introducing new products and features that have changed the way
people live, work, and communicate. Examples include the iPod,
iPhone, and iPad, which revolutionized the music,
telecommunications, and computing industries, respectively.
Tesla: Tesla has disrupted the automotive industry by developing
electric cars with advanced features such as autonomous driving,
long battery life, and fast charging. By focusing on innovation,
Tesla has positioned itself as a leader in sustainable transportation
and has attracted a loyal customer base.
Some examples of companies that have successfully
used innovation to create a sustainable competitive
advantage include
Netflix: Netflix has disrupted the entertainment
industry by introducing a new business model that
allows customers to stream movies and TV shows
on demand. By leveraging data analytics and user
feedback, Netflix has been able to develop content
that resonates with viewers and to create a
personalized viewing experience.
References:
Chesbrough, H. W. (2010). Business model innovation: opportunities and barriers.
Long range planning, 43(2-3), 354-363.
Christensen, C. M. (2013). The innovator's dilemma: when new technologies cause
great firms to fail. Harvard Business Review Press.
Teece, D. J. (2010). Business models, business strategy and innovation. Long range
planning, 43(2-3), 172-194.David, F. R., & David, F. R. (2017). Strategic management:
Concepts and cases: Competitiveness and globalization. Pearson.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Johnson, G., Whittington, R., & Scholes, K. (2017). Exploring strategy: text and cases.
Pearson.
THANK YOU!
