Innovation strategy
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The document discusses different types and levels of innovation including product, process, and strategy innovation. It also outlines several models for managing innovation within organizations, such as continuous improvement teams, new venture teams, and innovation teams. The key aspects of an innovation strategy are to scan for new opportunities, challenge assumptions, and strategize about being a first or fast follower. Producing innovative products requires studying breakthrough products, focusing on customer value, and using cross-functional teams and rapid prototyping.
Innovation strategy
- 1. Managing Innovation Strategy visit: www.studyMarketing.org 1
- 2. If you find this presentation useful, please consider telling others about our site (www.studyMarketing.org) You can download this presentation at: www.studyMarketing.org Visit www.studyMarketing.org for more presentations on Marketing, Strategy, Innovation, and Branding visit: www.studyMarketing.org 2
- 3. Innovation Types Product Innovation Process Innovation Strategy Innovation visit: www.studyMarketing.org 3
- 4. Product Innovation The process of bringing to life a new product/service to solve the customer's problem benefits visit: www.studyMarketing.org 4
- 5. Process Innovation Process innovations increase bottom-line profitability, reduce costs, raise productivity, and increase employee job satisfaction. The customer also benefits from this type of innovation by virtue of a stronger, more consistent product or service value delivery. visit: www.studyMarketing.org 5
- 6. Strategy Innovation Strategy innovation is about challenging existing industry methods of creating customer value in order to meet newly emerging customer needs, add additional value, and create new markets and new customer groups for the sponsoring company. visit: www.studyMarketing.org 6
- 7. Innovation Levels Incremental Innovation Substantial Innovation Breakthrough Innovation visit: www.studyMarketing.org 7
- 8. McDonald’s Innovation INNOVATION Product Process Strategy Breakthrough Big Mac Franchisee Global Regulations Expansion of Quality Substantial Value Meals Hamburger Opening for University Breakfast Incremental Green New French Boston Milkshakes Fry Cookers Markets for St. Pat’s Acquisition Day visit: www.studyMarketing.org 8
- 9. Innovation Model Model 1: The Suggestion System Model 2: Continuous Improvement Teams Model 3: New Venture Teams Model 4: The Incubator Lab Model 5: Innovation Teams visit: www.studyMarketing.org 9
- 10. Model 1 : The Suggestion System Suggestion programs provide employees an organized system through which to submit ideas and to have those ideas considered by a panel of dispassionate reviewers, who accept or reject them depending on pre- established criteria from management. visit: www.studyMarketing.org 10
- 11. Model 2: Continuous Improvement Teams • Unlike suggestion programs that focus on motivating individual contributors to come forward with their ideas, Continuous Improvement Model systems rely on team collaboration. visit: www.studyMarketing.org 11
- 12. Model 2: Continuous Improvement Teams • Sometimes called Kaizen Teams, (kaizen is the Japanese word for continuous improvement), they mostly focus on incremental, rather than substantial or breakthrough process on product improvements. visit: www.studyMarketing.org 12
- 13. Model 2: Continuous Improvement Teams • Nevertheless, when these seemingly small, continuous tweaks produced by firm's rank and file workers are added up, they can be substantial in their bottom- line impact. visit: www.studyMarketing.org 13
- 14. Model 4: New Venture Teams • The goal of the New Venture Team Model is decidedly not cost-saving ideas, not incremental improvements, and not process innovations. • Rather, the goal is more apt to be surfacing (and funding) unconventional product, service, or strategy ideas that have the potential to be breakthroughs. visit: www.studyMarketing.org 14
- 15. Model 5: The Incubator Lab • The Incubator Model of Idea Management gained popularity along side the dot-corn bubble of the late 1990s and lost favor just as fast. visit: www.studyMarketing.org 15
- 16. Model 5: The Incubator Lab • Beneath the hype, the basic idea of incubators was not too different from the skunkworks approach pioneered by Lockheed during World War II to rapidly develop and launch new aircraft by forming small, dedicated teams separate from the bureaucracy. visit: www.studyMarketing.org 16
- 17. The gist of this approach is to set up a company-wide network of people with demonstrated skills in innovation and Model 7: give them very clear marching orders: Innovation Go out and find some new ideas that Teams have promise. visit: www.studyMarketing.org 17
- 18. Innovation Strategy • Scan and monitor the sources of innovation opportunity. • Create a personal future-scan system. • Integrate future scanning with your company's idea management system. visit: www.studyMarketing.org 18
- 19. Innovation Strategy • Assault industry assumptions. • Broaden your company's vision. • Strategize your place in the first mover, fast follower race. visit: www.studyMarketing.org 19
- 20. Producing Innovative Products • Study previous breakthrough products. • Focus relentlessly on value creation throughout the development process. • Design and implement a new product development process. 20 visit: www.studyMarketing.org
- 21. Producing Innovative Products • Use a learning strategy for more radical ideas. • Use cross-functional teams. • Use rapid prototyping. visit: www.studyMarketing.org 21
- 22. Source of Reference: Robert B. Tucker, Driving Growth Through Innovation, Innovation Berrett-Koehler Publishers. visit: www.studyMarketing.org 22