Innovation Strategy

Innovation Strategy

1. Well grounded innovation strategy that guides firms choises, prioritizations, and sequences. There is a little value in being highly efficient at developing or delivering new products and services if they are the wrong products and services for the firm and its markets.

   • Well chosen new products and services deliver value, build the technological base of the firm, develop its capabilities, improve its processes, and add to its reputation and brands.
     • An innovation strategy helps firms decide, in a cumulative and sustainable manner, about type of innovation that best match corporate objetives
       • Guides decisions on how resources are to be used to meet a firms objetives for innovation and thereby deliver value and build competitive advantage.
         • An innovation strategy identifies the techologies and markets the firm should best develop and exploit to create and capture value.
           • It does so within the limits of the resources available to the firm to support current and future innovation efforts and its evolving corporate strategy, organization, and culture.
             • It involves prioritizing and developing the right technological innovations by ensuring that appropiate resourcesm capabilities, and process are used to their best effect in delivering value
               • The mahor strategic factor in radical innovation, convenial strategy analysis tools such as Porters five forces industry analysis
                 • Model of four interrelated elements involved in innovation strategy, including:
                   • The enacted strategy itself, including its targets and fit with overall company strategy, existing innovation efforts, and the context in which it operates.
                   • The resources available for innovation: the assets a firm owns and to wich it has preferential and secured access
                   • The innovate capabilities that guide and enable those resources to be assessed, configured, and reconfigured.
                   • The innovation process used to deliver results: the combiations of management and organization around R YD , new product and service development, operations, and commercialization that deliver innovationThe innovation process used to deliver results: the combiations of management and organization around R YD , new product and service development, operations, and commercialization that deliver innovation
                   • Innovation strategy helps to focus attention on how these resources, capabilities, and processes are best developed and deployed to meet coporate objectives.
                     • RESOURCES FOR INNOVATION
                       • A firm's resources used in innovation strategy include:
                         • • Financial resources and appetite for and tolerance of risk. • Human resources and their capacities for innovation.
                           • • Technological resources, both physical (plant and equipment) and intellectual (knowledge, patents, trademarks).
                             • Marketing resources (ownership and market penetration of brands, access to lead customers, knowledge of markets).
                               • • Organizational resources (the routines, procedures, practices, and policies within the firm, which, when combined, craft processes).
                                 • Networking resources (partners, supphers, customers, communities within which the firm operates, and the level of adhesion and trust within them).
                     • Capabilities include:
                       • Searching
                       • Selecting
                       • Configuring
                       • Deploying
                       • Learning
                     • In all cases sound, enacted innovation strategies usually possess the following features:
                       • • Statements on the role of innovation in meeting corporate strategic objectives, creating and delivering value, and building sustainable competitive advantage.
                       • As accurate as possible an understanding of market trends and technological and competitive circumstances and their impact on innovation positions.
                       • • Articulation of the firm's innovation ambitions and long-term objectives.
                       • Recognition Of gaps between current performance and future expectations in relation to innovation.
                       • Plans for developing and mobilizing resources and innovative capabilities in a timely manner.
                       • • Appreciation Ofthe most appropriate innovation processes for meetingobjectives.
                       • Five broad factors that influence innovation strategy in SMEs:
                         • Accumulated technological competencies
                           • External orientation
                             • Organizational specialisms
                               • Internal strategic cohesion
                                 • Management skills

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