INNOVATION, INNOVATION
STRATEGY, AND STRATEGIC
INNOVATION
Order
Meeting consumers’ needs and wants
Responding to changes in
consumer's preferences.
Shaping consumer’s preferences
Strengthening a
firm’s market position in presently served markets.
Entering new markets,
Differentiating the firm’s product offerings from competitor’s offerings,
Neutralizing the effects of competitor’s actions
Preempting a product market opportunity
Deterring entry of new competitors into markets that
are currently served by the firm,
Altering industry structure,
Altering the rules of competition
Types
Process innovation
Product innovation
Incremental product innovation
Radical product innovation
Market breakthrough product innovation
Technological breakthrough product innovation
Business model and business model innovation
Exploitative innovation
Exploratory innovation
Architectural innovation
Reverse innovation
Social innovation
Sustainable innovation
Sustainable product innovation
Innovativeness
Product innovativeness
Incrementally new product
Radically new product
Business Model Innovation
The value proposition
The target segment
The offerings
Revenue model
The operating model
Value chain
Cost model
Organization
Marketing Innovation
Major Cost Elements
Revenue Model:
Major Revenue
Source(s)
Customer Value
Proposition
Innovation Strategy
How will a firm’s innovations create value for potential customers?
How will a firm capture a share of the value its innovations generate?
What types of innovations will allow the firm to create and capture value,
and what resources should each type of innovation receive?
Marketing Strategy
Affects, cognitions, and
behaviors that influences costumers.
Behaviors of the organization: interactions
Management responsabilities: organization
Innovation
The implementation of a new or significantly improved product (good or service), or process, a new
marketing method, or a new organizational method in business practices, workplace organization or
external relations
Idea
Knowledge
New
Novel
Improved
Product
Process
Benefit
Useful
Solutions
Value
Innovation as a process
process of translating an idea into a commercially viable customer value proposition.
A multi-stage process by which an organization transforms an idea into a new or improved product or proces.
Creation of value
Product innovation that satisfies specific needs and wants.
More efficiently
More effectively
More effectively and efficiently
Product innovation
Meeting a currently unmet customer need
articulated versus unarticulated
need
Strategic Innovation
Innovations that expanded the human intellect and its creative, expressive and
moral possibilities
Innovations that are integral to the physical and operating infrastructure of the
modern world
Innovations that enabled the Industrial Revolution and its successive waves of
expanded material output
Innovations that extended life
Innovations that allowed real-time communication beyond the range of a single
human voice
Innovations in the physical movement of people and goods
Organizational breakthroughs
Innovations in killing