innovation strategy
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ManagingInnovation Strategy
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management skills dan business strategy
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Innovation TypesInnovation Types
Product InnovationProcess InnovationStrategy Innovation
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Product InnovationProduct InnovationThe process of bringing to life a new
product/service to solve the customer's problem benefits
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Process InnovationProcess InnovationProcess 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.
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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
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Innovation LevelsInnovation Levels
Incremental InnovationSubstantial Innovation
Breakthrough Innovation
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McDonald’s InnovationMcDonald’s InnovationINNOVATIONINNOVATION 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
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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
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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
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• 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
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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-substantial in their bottom-line impact.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 the potential to be breakthroughs.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 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.
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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.
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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 InnovationDriving Growth Through Innovation, Berrett-Koehler Publishers.