There are two critical questions that come in mind of every person involved in the business are: Is innovation strategy important for the organization? What is included in the innovation strategy?

In the given article we are going to find the answer for the above two questions.

Some people confuse both the concept that is innovation and creativity. It should be made clear that both the concept is totally different they are not related. There are many organizations that have great ideas which are considered to be as creative but they are not able to translate these ideas into more valuable form.

idea

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This translation generally requires effective process management. The transformation generally results in an innovative product, services, processes, and business models that deliver high value to the customer.  For a valuable innovation both creativity and process management are required.

What are the components of innovation strategy?

Innovation strategy generally contains the following components:

  •  Innovation positioning
  •    Goals
  •    Process management
  •    Improvement action plans

Positioning

For innovation strategy, there should be a clear image of positioning goal in mind. There are two main reasons why an organization innovates:

  1.    To be the market leader
  2.    To keep up and stay relevant

The position that the organization wants to achieve should be defined. The resources and capabilities should also be taken into consideration.  

innovation

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Goals

The innovation needs should consider both long and short-term goals. It is important to direct innovation efforts toward areas like products, processes, services and entire business models.

Long-term goals focus on breakthrough type developments whereas short terms goal is concerned with modifications, improvements, and adaptations aimed at delivering superior value to customers.

Process management and improvement

With the help of process perspective, an organization can easily find the areas of improvement. Accordingly innovation process is divided into three categories:

  • Idea generation to the conceptualization
  •    Development and verification
  •    Commercialization

The three components will help in the long-term success of the business.