Innovation Strategy

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Innovation TypesInnovation Types

Product Innovation

Process Innovation

Strategy Innovation


Product InnovationProduct Innovation

The process of bringing to life a new

product/service to solve the

customer's problem benefits


Process InnovationProcess 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 more

consistent product or service value consistent product or service value

delivery. delivery.


Strategy innovation is about challenging challenging

existing industry methods of creating existing industry methods of creating

customer valuecustomer value in order to meet newly

emerging customer needs, add additional value,

and create new markets and new customer

groups for the sponsoring company.

Strategy InnovationStrategy Innovation


Innovation LevelsInnovation Levels

Incremental Innovation

Substantial Innovation

Breakthrough Innovation


McDonald’s InnovationMcDonald’s Innovation

INNOVATIONINNOVATION ProductProduct ProcessProcess StrategyStrategy

Breakthrough Breakthrough Big Mac Franchisee Regulations of Quality

Global Expansion

Substantial Substantial Value Meals Hamburger University

Opening for Breakfast

Incremental Incremental Green Milkshakes for St. Pat’s Day

New French Fry Cookers

Boston Markets Acquisition


Innovation ModelInnovation ModelModel 1: The Suggestion System

Model 2: Continuous Improvement Teams

Model 3: New Venture Teams

Model 4: The Incubator Lab

Model 5: Innovation Teams


Suggestion programs provide

employees an organized system through

which to submit ideasto 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.

Model 1 : The Suggestion SystemModel 1 : The Suggestion System


• Unlike suggestion programs

that focus on motivating

individual contributors to come

forward with their ideas,

Continuous Improvement Continuous Improvement

ModelModel systems rely on team

collaboration.

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.

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-substantial in their bottom-

line impact.line impact.

Model 2: Continuous

Improvement Teams


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 the potential to be

breakthroughs.breakthroughs.



• The Incubator Model of

Idea Management

gained popularity along

side the dot-corn bubble

of the late 1990s and

lost favor just as fast.



• Beneath the hype, the basic idea of incubators was

not too different from the skunkworks approachthe skunkworks approach

pioneered by Lockheed during World War II to

rapidly develop and launch new aircraft by forming

small,small, dedicated teams separate from the dedicated teams separate from the

bureaucracy.bureaucracy.


Model 7: Innovation

Teams

The gist of this approach is to set up a

company-wide networkcompany-wide network of people with

demonstrated skills in innovation and

give them very clear marching orders:

Go out and find some new ideas that

have promise.


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.


Innovation Strategy

• Assault industry assumptions.

• Broaden your company's vision.

• Strategize your place in the first

mover, fast follower race.


• Study previous

breakthrough products.

• Focus relentlessly on

value creation

throughout the

development process.

• Design and implement

a new product

development process.

Producing Innovative Products


Producing Innovative Products

• Use a learning strategy

for more radical ideas.

• Use cross-functional

teams.

• Use rapid prototyping.


Source of Reference:

Robert B. Tucker, Driving Growth Through InnovationDriving Growth Through Innovation,

Berrett-Koehler Publishers. You can obtain this excellent book at this link : http://www.amazon.com/Driving-Growth-Through-Innovation-

Transforming/dp/1576754952/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1219804049&sr=1-1

Innovation Strategy

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