Innovation is basically a new idea, device or method. It is viewed as the better solution that can meet new requirements. Now if we talk about innovation strategy it is a plan to grow market share or profit through the service innovation.
An innovation strategy also indicates whether a product improvement or breakthrough approach is best when it comes to creating a solution.
During innovation audit author often look at five principal areas, the first area of concern is innovation strategy. In this article, we are going to look at innovation strategies and why they are important.
When companies prepare innovation strategy they should take into accounts both the corporate strategy and marketing. If they are not considered then people within the organization will not understand where their action should be directed.
While understanding it they will have a common purpose. So, this strategy should identify and priorities the need of innovation process by examining the gap between the future forecast and the desired state.
For this below given steps should be undertaken:
- Understand where the organization is going without any change
- Identify where you want the organization to stay in five years.
- After understanding the gap, it is necessary to understand how it will be filled.
- Here it is assumed that some gap will be filled with product or service improvement, or business process improvement
An innovation strategy needs to be formulated to identify how it can be achieved.
What should it include?
- Executive summary
- A summary of the organization’s goal and corporate strategy
- Outline of the objective of innovation
- Detail of the strategy, including a commentary regarding research.
- Detail as about how to prioritize the project
- An action plan, timescale and agreed metric through which you can measure progress
- Conclusion and future action
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