No, Innovation Should not be Part of your Strategy
0
6
0
I’ve been involved in the development of multi-year strategies for 5 companies and 3 non-profits. I’ve seen strategies that read like operating plans and strategies that were so lofty that they were impossible to implement. Some were all but dictated by the senior executive for a rubber stamp, others were group-edited into oblivion. Despite the differences in approach and outcome, they all attempted to answer a fundamental question:
What are we going to do that’s different enough to ensure that we distinguish ourselves from our competitors and provide more value to our stakeholders?
After all, that is the fundamental question of strategy. The answers? The things that you actively choose to do, or not do, in order to achieve your goals.
What are the fundamental questions and answers of innovation? I submit that it is identical. Innovation is the set of things that you do that differentiate you from the competition. The things that are unique and inimitable are the essence of your innovation.
Innovation should not be part of your strategy, it should be indistinguishable from your strategy.
In another post, I noted that there are thousands of books on innovation. Among those are several good ones. One of the best: Ten Types of Innovation.
The thesis is simple: innovation can occur in any aspect of your business from profit model to customer engagement. Product development is only one aspect, and typically one that is readily copied. Choose which aspects you will, and will not, take on to meet your goals.
The best innovations, the ones that are hardest to copy, combine elements from several of the ten types. Develop a system that combines service offerings and a fresh method of engaging customers. Add a network of partners who sell complementary products that are dependent on your platform. Then provide different ways to purchase your offerings. Now that’s innovation!
Or is it your business strategy? And that’s the point. Either way, your strategy should never include innovation. Your strategy should BE innovation.
Teaser text: Innovation is not part of your strategy. It IS your strategy. Thanks to Geoff Tuff, Peter Skarczinsky, and Matt Josephson for helping me learn this vital lesson. (with each of the names linked)
How about a “white paper” or something the reader can get from the Shawmaster?
