How to Develop an Innovation Strategy
There are several ways to develop an innovation strategy. They include identifying customer and incumbent dissatisfaction, leveraging disruptive technologies and processes, and productizing your company's value chain.
Process innovation
Process innovation as an innovation strategy involves reengineering processes, implementing new technologies, and introducing new methods to develop and deliver products. It is an effective tool for improving service levels and employee satisfaction.
Process innovations include significant changes in software, techniques, equipment, and company procedures. Innovations also address challenges in the production value chain, such as reusing resources, reducing nonproduct output, and enhancing the eco-efficiency of business operations.
Process innovation as an innovation strategy is a necessary element of competitive success. Modern technologies provide actionable insights that make this strategy even stronger.
Implementing a process innovation is a complex undertaking. In order to be successful, the project should have a clear focus and a strong cultural component. The process should be tested before it is implemented in all departments. A company can then measure its progress and make adjustments, as needed.
The first step in implementing process innovation is to understand how to define and identify the problem. This requires knowledge of the key actors involved in the process. They can be based on the industrial branch, regional affiliation, or specific contributions.
Another key aspect of a process innovation strategy is the identification of a "picture of the future" for the company. This is drawn up by the team. Using a flowchart, the team illustrates the innovation and lists basic assumptions about the existing processes.
Before the innovation team can refine the process, it needs to determine the benefits, difficulties, and costs. These are then mapped against the goals of the innovation.
Productization of your company's value chain
If you are looking for a quick and dirty way to boost your bottom line, there is no better way to go than by optimizing your current product line. But it's not as simple as adding a few new features to your existing offerings. A proper evaluation of your supply chain is required to come up with a strategy that will maximize your profits and minimize your cost base.
The best part is that it only takes a few months of dedicated staff and a bit of strategic thought to get there. In the end, a more effective product development process can result in improved performance, increased profitability and a larger pool of swag for your sales and marketing teams to enjoy. One way to keep the momentum going is to create a culture of innovation within your ranks. Identifying the top tier players and fostering collaboration amongst them is a sure fire way to achieve a competitive advantage. As an example, Trader Joe's is a pioneer in the field, and their success can be attributed to their uncanny ability to deliver innovative products at a reasonable price. To see how they do it, visit their website. For instance, they offer a free online product catalog, which allows customers to search for products from across their expansive portfolio.
Business model innovation
Business model innovation is a framework to help a firm respond to changes in the environment. It includes imagining new business opportunities, changing existing markets, and developing new value propositions for customers.
Creating a new business model or modifying an existing one can give an organization a strong competitive advantage. However, it can also be a challenge to implement. Businesses need to be able to identify opportunities that are consistent with their current business model and pursue them.
One of the most important steps in business model innovation strategy is to research the market. This is necessary to ensure that a new product or service is not added to an industry that is saturated. Using a small subset of customers to validate a business model can save valuable resources.
A successful business model innovation is essential to protect an organization's competitive edge. Whether it involves transforming an existing industry, introducing a new service, or changing how you charge customers, the process can create significant disruption.
Business model innovation can be a challenge, but it is also an opportunity to reinvigorate an lagging core. By creating a new business model, you can defend against industry disruption and generate more long-term profit margins.
There are no hard and fast rules to creating an effective business model innovation strategy. The first step is to understand the problem that the company is solving. Next, determine your target market. Finally, identify assumptions and test them.
Disruptive innovation
Disruptive innovation is a process whereby a new competitor enters a market with a new product or service that offers new value and a better experience to customers. This innovation can be driven by a new technology or an unexpected change in the business environment.
In order to successfully implement disruptive innovation, a company needs to be nimble, open to changing ideas and willing to take risks. They also need to know how to approach the process in an iterative fashion.
Disruptive innovations are products or services that target niche groups of consumers who would otherwise not be able to obtain them. These products are usually cheaper or more convenient, and often produce better results.
Disruptive innovation can take years to reach its full potential, but its effects are often lasting. A successful disruption will eventually displace an established competitor in its own industry. It can also lead to a new era for an entire industry.
Disruptive innovation can be achieved in any industry, if the right steps are taken. Some of the most popular disruptors include Netflix, Google Maps, Apple, and Uber.
While it may seem daunting to jump into the world of disruption, the truth is that it's much simpler than most people think. Rather than starting from scratch, disruptive innovators make use of existing technologies.
The term "disruptive innovation" was coined by Clayton Christensen, a Harvard Business School professor. He developed the concept by examining businesses that failed to renew themselves. Such failures showed that the leadership skills weren't strong enough to keep up with the rapid changes in their markets.
Identify sources of customer or incumbent dissatisfaction
When developing your innovation strategy one of the first things you should do is to identify sources of customer or incumbent dissatisfaction. This will lead to some of the most innovative solutions your business will ever come across. A clever method of identifying customers is to build a data driven profile of your target market. Then, you will be able to make more informed and better decisions. Using the data from the above process will also help you to refine your proposed product offerings. You may even learn that you have a few product innovations that you don't need. For example, you may learn that you don't have a standardized and efficient inventory management system in place. In this case, you can redesign your processes to better suit your customers' needs. Thus, you will be able to better manage your resources and ensure that all your employees are satisfied and happy.
It is also a good idea to identify the best way to monetize your innovations. For instance, you can find out which products and services are most valuable to your customers and refocus your marketing and sales efforts on those that are the most profitable. Likewise, you can learn which products and services have the lowest barriers to entry and develop a strategy to exploit those opportunities. Lastly, you should be able to identify what type of communication and information flows are most effective for your customers and employees.
Include a corporate accelerator
Corporate accelerators are a new frontier in the startup ecosystem. As large organisations seek to remain competitive, innovation programs are becoming a key tool. They help large companies foster relationships with startups, gain insights into emerging trends, and add intelligent tech to their business models.
Unlike a traditional R&D process, corporate accelerators are sponsored by an established corporation. These programs can provide funding, mentorship, and office space, and give corporations an opportunity to learn from startups. Although corporate accelerators can have a big impact on the future of large organisations, there are a few things to consider before signing up.
First, a corporation must understand the expectations of a startup. Startups typically exchange equity for a set time to produce results. For example, Nike launched Fuel Lab in late 2013. The program required applicants to be ready to launch within three months. It also included access to a development kit, a mobile software development kit, and a FuelBand.
Second, corporations must understand their own organization and culture. In addition, they must be able to communicate effectively to the startup team. If the startup's goals are unclear, it could result in premature termination.
Third, corporations should focus on a specific sector. This will allow the accelerator management team to draw upon sector-specific expertise. Moreover, it will help them exploit entrepreneurial teams.
Fourth, corporations must be able to handle the challenges that a startup presents. They must be able to adapt to the new technologies, methodologies, and problems that come up.
