Innovation strategies: beyond new product development

Fig_1_21    The first way to develop an innovation strategy is to (re)define where the firm wants to compete, what it defines as being part of its (new) “core business”. Specifically, this means finding new ways to explore – not just exploit – and reconfigure its business portfolio.

Fig_1_22The second way to develop an innovation strategy is to redefine how the firm wants its businesses to compete and which product/market positioning and value chain it wants them to build and sustain.

c DIO123+A key element of an innovation strategy is to understand that first is not always best. A firm should assess and define how quickly it wants to enter new business areas and manage innovation accordingly.

Fig_1_24One high-risk/high-potential innovation strategy is to challenge generic strategies and define and implement a “strategic innovation,” a radical redefinition of where and how a firm wants to compete and shape its future.

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Innovative business strategies: redefine how to compete

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Timing: first is not always best

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Off the beaten paths: strategic innovations

  • (Book) Chan Kim, W. & Mauborgne, R. (2005) Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant Harvard Business School Press
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  • (Video) What is strategic innovation? – Professor Costas Markides
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