INNOVATION STRATEGY IN BUSINESS WITH DETAILED EXAMPLE

Innovation Strategy
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In today’s business world, to excel as a business owner or startup, you need innovative strategies. These innovative strategies are what will likely make any business become a market leader. However, in marketing also, innovation is needed. And for every innovation to be successful, marketing must be involved. Nevertheless, this article will discuss some of the examples of innovation strategy and also in business.

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If you are looking for an innovation strategy in business, this is the right article for you.

Sit back, read and learn how to improve your business using innovative strategies.

What is an Innovation Strategy?

An innovation strategy is a commitment to a vision and set of activities designed to aid the future growth of an organization. Also, it is a strategy to grow market share through product and service innovation. 

Furthermore, no two innovative strategies are the same. However, they all outline the goal of an organization’s innovation activities. Also, define the key initiatives that will help it achieve that goal. 

Additionally, strategy is about making choices between several possible options to have the best chance at “winning”. However, innovation is just one of the ways to achieve your strategic goals.

Why is an Innovation Strategy Necessary?

A successful innovation strategy can:

  • Clarify priorities and objectives: An innovation strategy defines the aims of an organization’s innovation activities and assists in focusing efforts toward those goals.
  • Encourage cooperation: With a strategy in place, diverse groups within an organization can all work toward common goals instead of following their own particular agendas.
  • Keep a business from being complacent: Even businesses that begin as innovators must continue to innovate strategically over time, as copycats and innovative competitors are likely to take market share.
  • Assist a business in achieving long-term success: A company is unlikely to obtain (or maintain) a competitive advantage or keep customers interested in the long run if it does not participate in constant innovation.

Types of Innovation Strategy

Innovation strategy can be grouped into proactive, active, reactive, and passive.

#1. Proactive Innovation Strategy

Different companies are using this type of innovative strategy. However, this strategy involves research analysis. Also, most of the companies using it are technological market leaders. However, they get their knowledge from a wide range of sources and are high-risk takers. Examples of these companies are Apple, Dupont, and Singapore Airlines.

#2. Active Innovation strategy

This entails supporting existing technologies and markets while being ready to respond quickly once markets and technologies are shown. Companies using this approach also have wider sources of knowledge. 

However, they are medium-to-low risk-takers; they tend to hedge their risks. Examples include Microsoft, Dell, and British Airways.

These firms employ mainly incremental innovation with in-house applied research and development. 

#3. Reactive Innovation strategy

The reactive innovative strategy is employed by firms that are followers and have a focus on operations. Also, firms that take a wait-and-see approach and also look for opportunities that involve lower risk. 

#4. Passive Innovation strategy

Firms with passive innovative strategies often remain idle until their customers require changes in their products or services. A perfect example is automotive supply companies. They wait for their customers to demand changes to specifications before executing these changes. 

Innovation Strategy Examples

Here are some examples of innovation strategies. Currently, they are one of the biggest firms in the world. However, they all got to the top today because of the innovations they made. 

MICROSOFT INNOVATION STRATEGY 

Microsoft has thrived in recent years using incremental innovations. However, the company has struggled to obtain radical innovation. Although it may change soon. Nevertheless, recently, Microsoft’s innovative strategy involves going wholly on R&D to develop its position in a range of markets. 

THE INNOVATION STRATEGY OF APPLE

Before now, Apple used to outsource R&D actions, favoring instead focusing on product development. However, these days, they’re building competencies in-house through inside accelerators while also acquiring startups. 

THE INNOVATION STRATEGY OF GOOGLE

Google’s innovation strategies are all over the model, so it’s hard to assign them just one innovation model. However, Its parent company, Alphabet, heavily invests in R&D. Hence, indicating that it’s targeting disruptive, radical, and architectural innovation. 

THE INNOVATION STRATEGY OF AMAZON

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Innovation is inherent in every part of Amazon’s culture – not just the R&D aspect. Also, they have attained the difficult feat that is retaining their startup culture while climbing up. 

 THE INNOVATION STRATEGY OF SAMSUNG

Samsung’s strategy has primarily been all about incremental innovation. Its curved mobile phone screens are the best example. However, the company’s innovation strategy in recent years has been to broaden its portfolio. Nevertheless, Samsung also strategically funds a range of external forces to co-create businesses. 

Now, let’s discuss briefly marketing innovation strategy.

Marketing Innovation Strategy

What does marketing have to do with innovation? Innovation needs marketing to function likewise marketing needs Innovation to be successful. 

However, innovation marketing plays a vital role in securing and improving the success of innovation. In marketing, the key players are the four Ps(place, promotion, product, and price). However, these four Ps cannot get the marketing team anywhere without a marketing innovation strategy.

According to Peter Drucker “Business has only two functions – marketing and innovation”. Also, he regarded marketing and innovation to be the important basis for a company’s success.

Nevertheless, let’s take a deeper look at the purpose and role of marketing from an innovation viewpoint. Marketing involves tasks to increase sales. Also, the focus is on customer and market orientation; all products, services, and processes are to be connected with the needs of customers and users.

Additionally, innovation marketing covers all innovation activities that provide promotion to the market success of new products and services. The goal of innovation is market success.  Hence, innovation marketing plays a crucial role in the innovation process. 

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Innovation Strategy in Business

In any business, you need innovative strategies to excel. Newbies see business as buying and selling goods and services to make a profit. However, business is an exchange of value for profit-making in a socially acceptable manner. Hence, to do business, you have to exchange something of value. These values in businesses are obtained through innovation strategies.

Additionally, business is seen as a going concern. Meaning, that it’s expected to last long even after the owner dies. However, without innovative strategies in business, the growth of the business will reduce.

Innovation is somewhat the backbone of any business. Businesses are in competition. However, what will make one business better than the other is its innovative strategies. The reason some businesses last while others don’t are the innovative strategies they adopt to keep up with new trends.

How To Develop an Innovation Strategy

#1. Connect innovation to business strategy.

To be successful, your innovation activities must align with your broader business strategy. Individuals throughout the firm must grasp the corporate goals in order to set the environment for effective innovation.

This includes comprehending the market in which the business intends to operate, as the best inventions address the wants of clients or future customers. Understanding your competition should also inform your innovation approach.

Also, keep in mind that all of the finest products and business concepts follow a predictable, S-curve growth cycle. Successful innovation will not continue to grow indefinitely. When the novelty of the new wears off and declining returns come in, it’s time to introduce the next innovation–and your strategy should be prepared for this.

#2. Decide on your value proposition.

Your innovation plan should address the issues of what distinctive value you will deliver to your market and what types of innovations will enable you to capture that value and gain a competitive edge.

To answer these questions, a business must first establish its fundamental competencies.

Can you add value to your consumers’ lives by saving them money and time? By convincing people to spend extra for your product or service? Is it by bringing more value to society? By making your product perform better, be more convenient, last longer, or be less expensive than the competition?

#3. Discover your clients’ unmet wants.

The most successful innovations will meet the demands of the people you wish to serve–and in order to produce those innovations, your business must first identify those needs, sometimes even before the customers realize they have them.

Employees are frequently the closest to your clients, and they can be a vital component of the strategy for identifying unmet needs.

Consider crowdsourcing staff input to assist discover their understanding of client needs. This can be a useful method for determining where to focus your innovation efforts.

#4. Examine and adjust

The most effective strategic plans are constantly adaptable. Take the time to evaluate the performance of your innovation approach through employee crowdsourcing. This stage might offer you with a long-term feedback loop to assess the validity of your plan and adjust it as needed.

Be willing to alter your innovation approach to better meet reality when consumer and market needs evolve. Continue to solicit employee feedback and tweak your plan to match current needs.

Conclusion

In conclusion, innovation is the key to any successful business. Anything you do, try as much as possible to have innovative strategies. Also, in marketing, innovative abilities are needed. However, if you have taken a look at the great examples of innovation strategy, you would want to be like them.

Innovation Strategy FAQs

What is innovation strategy with examples?

An innovation strategy is a commitment to a vision and set of activities designed to aid the future growth of an organization. Also, it is a strategy to grow market share through product and service innovation. 

What is innovation strategy in business?

In any business, you need innovative strategies to excel. Newbies see business as buying and selling goods and services to make a profit.

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