Nowadays, companies that want to develop lasting competitive advantages for themselves need not only product development but also process improvement, organizational innovation, and service innovation. Also, due to the digital transformation, the development of digital innovations becomes increasingly important. Executives, managers and employees across the globe are working hard to figure out how to succeed with innovation
But, why is it so hard to build and maintain the capacity to innovate? The problem with innovation improvement efforts is rooted in the lack of an innovation strategy! Without a clear innovation strategy, companies run the permanent risk of losing the focus of their activities. An explicit innovation strategy supports companies in aligning their activities towards clearly defined and measurable goals.
Why you need an innovation strategy ?
Companies invest a lot of time, money, and resources in ideation, labs, incubators, accelerators, etc. and the development of new ideas for different areas of their businesses.
An explicit innovation strategy helps to:
⁃ ask the right guiding questions in the process of idea generation,
⁃ define the right criteria for idea evaluation and
⁃ prioritize innovation projects according to specific objectives.
The establishment of a system to measure innovation is important for efficient innovation management. The concept is to monitor success using clearly measurable indicators. By defining an innovation strategy, companies set targets that they want to achieve through innovation activities in the different areas of their business, establish milestones for the implementation of innovation projects, and allow the development of targeted, measurable criteria for measuring innovation.
Last but not least, an innovation strategy helps companies to move their innovation culture in the right direction:
⁃ What exactly should employees be open to?
⁃ In which way should they be curious about current developments?
⁃ What kind of experiments should the innovation culture support?
⁃ Exactly which common assumptions should be challenged?
⁃ what kind of risks can be taken by employees and within which scope?
In addition to this, corporate leaders also need to connect their innovation strategy to the overall company’s business strategy. They should provide clear guidance on the role of innovation within the company. Only when such strategic alignment is achieved will companies be able to innovate in the long term.
How we can help
These are only, just a few ideas to inspire and give you a starting point. If you want to have us help you, we can provide you with that structured approach to develop an innovation strategy.