Innovation Strategy

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Managing
Innovation
Strategy
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Innovation Types
Product Innovation
Process Innovation
Strategy Innovation

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Product Innovation
The process of bringing to life a new
product/service to solve the
customer's problem benefits

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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.
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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.
Strategy Innovation
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Innovation Levels
Incremental Innovation
Substantial Innovation
Breakthrough Innovation

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McDonalds Innovation
INNOVATION

Product Process Strategy
Breakthrough Big Mac Franchisee
Regulations
of Quality

Global
Expansion
Substantial Value Meals Hamburger
University
Opening for
Breakfast

Incremental Green
Milkshakes
for St. Pats
Day
New French
Fry Cookers
Boston
Markets
Acquisition
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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
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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.
Model 1 : The Suggestion System

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Unlike suggestion programs
that focus on motivating
individual contributors to come
forward with their ideas,
Continuous Improvement
Model systems rely on team
collaboration.
Model 2:
Continuous
Improvement
Teams
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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
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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.
Model 2:
Continuous
Improvement
Teams
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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.
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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.
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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.
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Model 7:
Innovation
Teams
The gist of this approach is to set up a
company-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.
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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.
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Innovation
Strategy
Assault industry assumptions.
Broaden your company's vision.
Strategize your place in the first
mover, fast follower race.

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Study previous
breakthrough products.
Focus relentlessly on
value creation
throughout the
development process.
Design and implement
a new product
development process.
Producing
Innovative Products
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Producing
Innovative Products
Use a learning strategy
for more radical ideas.
Use cross-functional
teams.
Use rapid prototyping.
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Source of Reference:
Robert B. Tucker, Driving Growth Through Innovation,
Berrett-Koehler Publishers.

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