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 corporate strategies: (re)define the core business

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Timing: first is not always best

Keywords: experience curve, incumbent, first mover (dis)advantage, follower, imitation, learning curve, lock-in, network effect, persistence of innovation, switching costs

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Off the beaten paths: strategic innovations

Keywords: Blue Ocean strategy, strategic innovation

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  • (Book) Markides, C. C. (2013). Game-changing strategies: How to create new market space in established industries by breaking the rules. John Wiley & Sons.
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  • (Article) Markides, C., & Charitou, C. D. (2004). Competing with dual business models: A contingency approach. Academy of Management Perspectives, 18(3), 22-36.
  • (Article) Schlegelmilch et al. (2003) ‘Strategic innovation: The construct, its drivers and its strategic outcomes’, Journal of Strategic Marketing, vol. 11, p. 117-132

(c) Prof. Benoit Gailly, Louvain School of Management

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