Innovation Strategy

In: Business and Management

Submitted By PinkyTang
Words 1650
Pages 7
1.Strategy for innovation
Innovation: applications of new ideas to the products and processes that increase commercial values.

Five techniques for innovating by using existing resources (inside the box):
Subtraction: generating a new innovation by removing the existing components.
Division: separate an object or service to multiple parts and rearrange the parts into something new.
Multiplication: duplicate a current components and innovation by removing the existing components.
Task unification: unifying unrelated functions or tasks.
Attribute dependency: make previously independent attributes dependent on one another.

Generating new ideas is easy, but making them into innovation is hardneed innovation strategy.

Innovation strategy: long-term plan that improves firm’s innovation success rate. A good innovation strategy invests in innovation projects that align with company’s resources and capabilities and satisfy customers’ needs.
Why important?
It enables firm to introduce innovations to marketplace and thus remain competitive.
It helps enhance the existing products and services so that improve customers’ utility.
It improves the efficiency and output of the process of innovation.
It helps to understand and manage the risk associated with innovation.

2.Inspiring innovation
Internal sources of innovation * R&D: investment in basic researches (researches that advance knowledge)
Investment in applied researches (researches for specific problem or topic, usually with commercial object, followed by development to create product)--different spending on applied and basic researches for different firms (low-tech and high tech); difference spending between firms and government. * Incentives (financial or non-financial) for employees to come up with new ideas.

Usually, firms tend to spend more on applied researches while government…...

Similar Documents

Innovation Strategy for Growth

...Innovation Strategy & Growth by Firdaus Khan Assoc. Prof & Trainer at ICBM-SBE 20 December 2012 firdaus@icbm.ac.in 1 “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, … we had everything before us, we had nothing before us” 20 December 2012 firdaus@icbm.ac.in 2 SURPRISE!!! Q: Which is the number one mobile payment country on earth? A: It’s Kenya! 20% of its entire GDP passes through its service mPesa. 20 December 2012 firdaus@icbm.ac.in 3 GUESS WHAT !!! Q: Per capita, which country has the largest audience/users of youtube? A: Saudi Arabia The largest category of videos watched is educational. The largest demographic is middle aged women 20 December 2012 firdaus@icbm.ac.in 4 GOTCHA !!! Q: Where is the world's largest collection of fresh water? A: Egypt-Libyan desert. Remarkable solar technology is being invented to more reliably pump it and affordably extend food and fertility of land 20 December 2012 firdaus@icbm.ac.in 5 Today’s Race for Profitability is.. • not a 100m dash, • its rather a decathlon – where success comes from all round excellence in multiple sports - sitting out is not an option & - competing effectively entails mastering a number of competencies in a balanced way. 20 December 2012 firdaus@icbm.ac.in 6 Clued......

Words: 1409 - Pages: 6

Innovation Strategies

...Innovation Strategy February 11, 2013 Innovation Strategy Innovative strategies are perilous to an industry’s success and long life. They enable businesses be competitive in present trends as well as setting benchmarks for future development. The organization that has been chosen is Lytro. This company has created a product that allows its’ consumers to create living pictures that can be endlessly refocused after the image had been taken. These images are able to be shared and are capable of being instantly refocused by others. The idea that everyone be worthy to own the product is the basis for their activities. The paper will serve to label as well as evaluate Lytro’s innovative strategy. The group will provide information from Securities and Exchange Commission filings to the newest product released from Lytro. Description of Innovative Strategy Lytro has done a lot to separate themselves from their competition. This includes being one of the first companies to enter the market with plenoptic cameras. In 2011, Lytro produced a camera that was able to focus on a picture after the picture was taken (Wikipedia, 2013). The introduction of these products has gained the attention of many individuals. With the market in need of new products, Lytro has found a way to separate themselves from their competition. Just recently in 2012, Lytro won the Silicon Valley / San Jose Business Journal’s Idea and Innovation Award in the consumer technology category. Today the......

Words: 666 - Pages: 3

Innovation Strategy

...Innovation Strategy Pays Off For Kimberly-Clark (NYSE:KMB) http://investor.kimberly-clark.com/releasedetail.cfm?releaseid=... February 3, 2009 Innovation Strategy Pays Off For Kimberly-Clark REIGATE,UK - Feb. 3 2009 – Global health and hygiene giant, Kimberly-Clark, today celebrates two victories after winning ‘Product of the Year’ awards in the UK’s largest consumer survey, designed to highlight the biggest product innovations in the FMCG industry. Leading toilet tissue brand Andrex was named Household Paper Product of the Year for its 'Hello Softie' mainline product as well as Kids' Hygiene Product of the Year for Andrex 'Moist for kids'. The awards follow a strategic focus on the customer, shopper and user insights needed to drive real innovation and bring solutions into the market place that make a real difference to people's lives. Kimberly-Clark's ambition to become an indispensible partner to the retail trade by driving category growth, led by innovation is part of this strategic focus. Troy Warfield, Kimberly-Clark Vice President, said: "We have focused on investing in insights to drive our innovation, communication and activation that has seen our consumers recognize this through our share growth and the "Product of the Year" achievements. "This year we will continue to invest in our brands and drive our marketing campaigns that reach people in new and exciting ways deliver innovation and value for our consumers and continue to align Kimberly-Clark with the...

Words: 362 - Pages: 2

Importance of Innovation as a Winning Strategy

...In the continuously changing environment, innovation is very important for the advancement of society and making the life better and simpler. New and innovative products increase the standard of living by providing the opportunities to improve the lives. With the advent of globalization and outsourcing, the need for innovation has increased. This is because of the increase in competition whereby all the small and big firms are operating at the same platform. According to Peter Ducker, if the company lost the ability of innovation then soon the company have to face the decline stage and the extinction in the business market (Goldhar and Berg, 2010) . In order to survive the organizations need to offer more than the good product in order to survive and this zeal to improve require the innovation in processes and management which helps in reducing the cost or improving the productivity. Innovation is the only tool with the help of which the organization can maintain its position in the competitive market and stay one step ahead of its competitors. It is the only way that creates the differentiation with the customers. Moreover, customers prefer the products which make their life simpler and this is possible with the continual improvement in product or processes. Being first in the market with the new product gives the significant advantage in building the customer base. The term Operational Strategy is defined as, “the total pattern of decisions which shape the long term......

Words: 812 - Pages: 4

An Innovation Strategy for Lg Electronics

...AN INNOVATION STRATEGY FOR LG ELECTRONICS Thanks to the continuous technological innovation of handsets, the rise of mobile phones has been nothing short of phenomenal and the trend is expected to continue in the years to come (Frost & Sullivan, 2006). Their continued success is down to the fact that today’s handsets have become much more than simply mobile phones. A mobile phone can function as a camera, PDA and has many other features such as gaming functions and access to the Internet. Based on 3G, broadband is also paving the way for video-telephony and TV viewing. Characterised by continuous change and innovation, the mobile phone industry then sets an exciting stage for devising an innovation strategy. Our focus will be on mobile phone manufacturer LG. LG Electronics, Inc. is in fact a consumer electronics company with two other business units (Digital Display & Media and Digital Appliances), besides the Handset unit we will focus on in our report. On a global scale, LG’s handset division is 5th in terms of market share based on handset revenue, behind Nokia, Motorola, Samsung, and Sony Ericsson (see Appendix 1). Despite not being in the ‘Big Four’, LG’s market position is that of a strong challenger considering the many other ‘me too’ competitors that exist (e.g. NEC, Sanyo), but who fail to register in consumers’ minds. LG’s achievement can be seen to be mainly due to the success of their ‘Black’ series with popular models such as ‘Chocolate’ and ‘Shine’. Industry...

Words: 5551 - Pages: 23

Innovation Versus Speed Strategy

...Innovation versus Speed Strategy The approach companies take in making strategic decisions regarding such critical aspects including their business model and value chain have direct implications on their ability to sustain themselves over time. The accumulated research shown by Dr. W. Chan Kim and Dr. Renee Mauborgne in their best selling book Blue Ocean Strategy (Kim & Mauborgne, 2005) illustrate that new, uncontested markets are created by the decisions companies make over time rather than high levels of research and development (R&D) spending or intensive mergers and acquisitions (M&A) to acquire patents. The differences between companies who rely on innovation-based strategies relative to those that rely on speed-based ones are most prevalent during the decision of when and how to launch new products. This specific decision is in fact quantified as the single greatest and profit-generating event in the analysis completed (Kim, Mauborgne, 2004). Apple dominates innovation-based decisions and often looks to completely redefine a given marketplace through the sequence of product and service innovations developed. This mindset and resulting decisions within Apple to pursue a strategy of innovation and the development of an entire ecosystem for digital content including iTunes, iPods, and iPhones/iTouch devices has created a platform the company capitalizes on with each product introduction (Jonash, Koehler, & Onassis, 2007). The decision of which features......

Words: 560 - Pages: 3

Innovation Strategy

...Learning Team Activity: Innovation Strategy STR/581 August 13, 2014 Company's History Starbucks started in 1971 selling coffee beans, tea leaves and spices in Seattle, Washington. Today, the company has grown over 19,000 branch outlets in over 60 countries selling coffee, tea, beverages, food and store branded items. According to Starbucks Coffee Company (2014), the company’s mission statement is “to inspire and nuture the human spirit – one person, one cup, and one neighborhoor at a time.” Starbucks Coffee Company has always been determined on evolution through transformation and modernization. They have enhanced almost all of their product lines over the years and have ventured to other products besides coffee. Thus, this includes fresh organic fruit juices, bottled teas, pastries, mixed soda beverages, and even downloadable music. Starbucks’ Innovation Strategy “In January 2014, Howard Schultz, the CEO of Starbucks announced that the company would now focus on innovation in coffee, tea and that the Starbucks Experience. The important focus would be to become the next generation retails and payments initiatives in the areas of digital, mobile, card, loyalty and e-commerce that would position Starbucks for its next wave of global growth” (LinkedIn, 2014). By using consumer feedback approach regarding their products and services offered, they are able to find out what they do not offer and the importance of these particular items to loyal customers.......

Words: 1145 - Pages: 5

Strategy and Innovation

...Administration Sustainability & Innovation International Timeshare Industry SUSTAINABILITY & INNOVATION: INTERNATIONAL TIMESHARE INDUSTRY March 3, 2015 Faculty of Hospitality & Tourism Management Master of Business Administration Table of Contents Abstract 1 CHAPTER 1 – Research Study 2 1.1 Introduction 2 1.2 Research Problem 3 1.3 Research Objective 3 1.4 Research Question 3 CHAPTER 2 – Description of Changing Landscape & Challenging Market Space 3 2.1 Changing Landscape & Challenging Market Space 3 2.1.1 Economic and Industry Analysis 5 2.1.2 Challenges & Strategic Trends 8 2.2 Description and Analysis of Four Key Businesses 9 2.2.1 Marriott’s Aruba Ocean Club 9 2.2.2 La Cabana Beach Resort & Casino 9 2.2.3 Tropicana Aruba Resort & Casino 10 CHAPTER 3 – Research Design and Methodology 10 3.1 Research Design – Data Collection 10 3.2 Methodology – Data Analysis 11 3.3 Quality of the study 11 CHAPTER 4 – Results and Findings 11 4.1 Descriptive Analysis 11 CHAPTER 5 – Conclusion and Recommendations 22 References 24 APPENDIX A – Interviews 25 Abstract The timeshare industry whether large or small are competing on a variety of areas such as luxury, flexibility and service. It is also the least researched segments of the accommodation of tourists. This paper provides a analysis of the current situation of the timeshare industry focusing on innovation and......

Words: 8585 - Pages: 35

Innovation Strategy of Retailer

...Innovation Strategy of Retailer: From the View of Global Value Chains Yongquan Hu, Huifang Jiang Abstract-Retailing running to high-value-added-end is a more visible trend, which attracts lots of attention from researchers or practitioners. This paper tries to explain this with the theory of Global Value Chains(GVCs). After literature review on GVCs and innovation strategy, this paper analyzes the global value chains of 7-11, IKEA, Wal-Mart and PPR separately. Then some com parisons is done to analyze the respective characteristics of the global value chain model of the four from ten angles, so as to build retailer's innovation strategy on GVCs. As a result, some advices are given to Chinese retailers for their developing. their competitiveness on value chains and develop so quickly? Since coming down to the status of retailing on global value system, the researches for such questions, as above, tum out to be meaningful both in theory and practice. So, applying the dynamic theory of global value chains, this paper analyzes four global value chains driven by four multinational retailers, in order to explain the phenomena of retailing running to high-value-added-end, and provide retailers with a global perspective, Multi-Dimensional model for innovating and competing. Index Terms-retailer, global value chains, business strategy, innovation, innovation strategy I. INTRODUCTION As a presentation of the terminal industry, there's a......

Words: 3068 - Pages: 13

Str 581 Week 2 Organizations Innovation Strategy

...STR 581 WEEK 2 ORGANIZATIONS INNOVATION STRATEGY A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=str-581-week-2-organizations-innovation-strategy Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION STR 581 Week 2 Organization’s Innovation Strategy, “Verizon Wireless is an innovative wireless communications company that connects people and businesses with the most advanced wireless technology and service available” (verizonwireless.com). Verizon wireless is owned by Verizon communications and is headquartered in Basking Ridge, NJ. Verizon wireless is the nation’s largest wireless company. Verizon currently serves about 123.4 million customers and have more than 1,700 retail locations nationwide. They were the first wireless company to bring 3G wireless broadband network to the States. The nation’s largest and most reliable 4G LTE network is operated by Verizon wireless. With the 4G LTE, customers can access fast internet and stream media faster than before. Now, Verizon has expanded to a new technology called XLTE. This new technology offers doubling speed and capacity over 4G LTE and still using the same Advance Wireless Services (AWS) spectrum. Now customers who live in the most congested areas for wireless and data traffic can access internet, download videos and send multimedia messages without experiencing delay or reduced speed, even during times of peak usage. In this paper, we will discuss how this......

Words: 326 - Pages: 2

Innovation Management: the Key Strategy of Success

...result into a high rise of service and products quality, a progress in the humanity society. However, if focusing on the individual unit, creative destruction is a challenge. Those who do not play well, like because of lacking skills or technology, will be eliminated out of the game. In the following sections, this paper is going to illustrate the importance of innovation strategy in this game from the enterprise perspective, how could innovation strategy fit the strategic planning well, and how big data could work for the strategic planning process. 1 Innovation Strategy As defined, innovation strategy is a plan conducted by the organization to encourage advancement in technology or service. (Businessdictionary.com) Innovative technology is the soul of the business, which differentiates the firm from the others and brings profits to stakeholders. However, innovation does not equal product development. Product development could be a strategy to design more diverse products, like new products with more different attractive function, without any new technology. Just as Adam Hartung said, how much a company spends on innovation doesn't matter, because what's important is what the company spends on real breakthroughs rather than sustaining ideas.(Hartung, 2011) Imitation or working on the sustaining area is not enough to make progress and fight in the changing world. Nokia had been the leader in the mobile phone industry and it put a great amount of budget in to the R&D,......

Words: 1000 - Pages: 4

Mgmt 535 Assignment Strategy, Innovation and Leadership

...MGMT 535 Assignment Strategy, Innovation and Leadership Click Link Below To Buy: http://hwcampus.com/shop/mgmt-535-assignment-strategy-innovation-and-leadership/ The paper should be between 2-3 pages not including the cover page (APA format), double-spaced, and with 12- pt. font and 1-inch margins. The paper should include the following elements: I Cover page II Responses to questions III Summary of findings Assignment Answer the following questions related to strategy, innovation, and leadership. Strategy: In the 1980s and 1990s, the board of directors of Ben & Jerry's agreed that the company's identity should be defined by high environmental and social standards. But they struggled to agree on how high those standards should be and how the company should pursue them. Some said that profits had to come before purpose, and that social and environmental initiatives should be cut when money was tight. Others said that the company had to "walk the talk" and maintain its commitments regardless of the financial consequences to shareholders. Argue for and against these positions. Innovation: Ben Cohen succeeded by being the first to mix chunks into mass-produced ice cream, and he also experimented with his company: by enlisting not-for-profits as suppliers, by putting Vermont residents first in line for the IPO, and in countless other ways. Some of his management experiments were hugely successful. Many of them failed and cut deeply into the company's......

Words: 373 - Pages: 2

Strategy Innovation

...areas’ (Reger and Huff, 1993). Analyse the process of industry definition and competitor analysis as elements of strategic management. There have been numerous viewpoints on the subject of strategy and its role in business since the advent of the industrial revolution and the development of modern management practice. Many modern day theorists and students of the subject, me included, are of the viewpoint that Strategy in business is an ever evolving subject. Strategy can be interpreted and utilised in a number of ways and no theory or viewpoint should be disregarded as each question asked and each framework devised can be beneficial when applied to any situation which merits strategic evaluation. Industry definition is an integral part of the strategic process as a business needs to establish where it will be active, i.e. which market it will be involved in, how to access this market and then how to control the market. This could be equated to The ‘P’ in the well known PESTAL Analysis framework, where the business establishes its position in the marketplace. In Hambrick and Fredrickson’s framework ‘The Five Major Elements of Strategy’ the authors list Arenas, Vehicles, Differentiators, Staging and Economic Logic as the five most important areas to consider when formulating a strategy for a business. Industry definition can be applied primarily to arenas as the business needs to establish in which market it will be active. This process is of extreme importance as ‘in......

Words: 859 - Pages: 4

Disruptive Innovation in Emerging Markets: Strategies Used

...ETM / IEL Working Paper Disruptive Innovation in Emerging Markets: Strategies Used in India and China Ruan Y., Hang C.C., Subramanian A.M. No. 01/12 Division of Engineering & Technology Management (D-ETM) Institute of Engineering Leadership (IEL) Faculty of Engineering 1    Disruptive Innovation in Emerging Markets: Strategies Used in India and China Ruan Y., Hang C.C., Annapoornima M.S. Abstract The appropriate type of innovation which can meet the needs of the mass population in the bottom of pyramid (BOP) has not been studied much in the literature. Based on the theory of disruptive innovation, we offer 11 cases from India and China – the two biggest emerging markets to show that disruptive innovation could be an appropriate, feasible, and powerful innovation force to the companies and the economies involved. We also examined the R&D strategies used in these cases based on the framework proposed by Yu & Hang (2011) and found that 3 out of the 4 strategies commonly used in the cases from developed markets were also applied in the cases from emerging markets. In addition, we have identified 3 unique strategies which emerged from the cases from India and China, namely frugal engineering, modularization, and drastic manufacturing cost reduction. Based on the frequency of the usage of these strategies, we drew practical implications for local companies and multinational companies. Our study also provides critical insights to policy......

Words: 10301 - Pages: 42

Boeing Innovation Strategy

...Boeing Innovation Strategy Shayne Arndt, Lee Eadie, Sridhar Lakshminarayanan, Norberto Rodriquez, Phylicia Smith, and Amber Thompson STR/581 April 2, 2012 Cassandra Molavrh Boeing Innovation Strategy Innovations are a fundamental prerequisite for competitiveness. The economic crisis forced most businesses to conserve funds in various operational areas. Innovation strategy in any business or industry involves aligning the product life cycles in the company with the various research and development activities. Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space, and security systems. A top United States exporter, the company supports airlines and United States and allied government customers in 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and, performance-based logistics and training (Boeing, 2012). Boeing’s Background In the ever-changing business environment, organizations are constantly seeking ways to diversify products and revenue sources, create the best organizational structure, and foster productive work environment cultures through innovation strategies. Boeing is a leading innovator in the aviation industry. The organization faces industry-wide challenges including increasing fuel costs, price-conscious customers, and......

Words: 1596 - Pages: 7

Crime and Punishment (Character Suffering) | Honda CB 450 K1-2 1969, garde-boue / Kotflügel | SZY (50)