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Three innovation strategies
Three innovation strategies
Three innovation strategies
Three innovation strategies
Three innovation strategies
Three innovation strategies
Three innovation strategies
Three innovation strategies
Three innovation strategies
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Three innovation strategies

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  • 1. Three Innovation Strategies Technology Driver, Need Seeker, Market Reader
  • 2. Innovation Strategies <ul><li>BCG has stipulated that firms follow at least one of three innovation strategies: </li></ul><ul><ul><li>Need Seeker </li></ul></ul><ul><ul><li>Market Reader </li></ul></ul><ul><ul><li>Technology Driver </li></ul></ul><ul><li>Selecting the appropriate strategy or strategies and implementing them appropriately can greatly impact the success of innovation in your business </li></ul>
  • 3. Three Focus Strategies Technology Driver Need Seeker Market Reader Increasing Customer Focus Increasing Technology Focus Increasing Market Focus
  • 4. Technology Driver <ul><li>Based on the concept that the firm can create interesting, relevant technologies that solve customer needs </li></ul><ul><ul><li>Firms that pursue this strategy must also be the technology leader in their field </li></ul></ul><ul><ul><li>“ Inside-out” innovation. Company creates innovations that find or create markets </li></ul></ul><ul><ul><li>Driven by technology, not needs </li></ul></ul><ul><ul><li>Limited breadth of innovations. Typically limited to new products. Few services, business models or experiences </li></ul></ul><ul><ul><li>R&amp;D focused. Typically much of this innovation happens in the lab. Less innovation outside of R&amp;D. </li></ul></ul>
  • 5. Need Seekers <ul><li>Strategy to seek out customers and understand unmet or unarticulated needs. Deliver products and services that meet those needs. </li></ul><ul><ul><li>Company needs to have an active engagement with customers or consumers </li></ul></ul><ul><ul><li>“ Outside-in” innovation. Discovering needs in the customer and prospect base </li></ul></ul><ul><ul><li>Identifying needs, then linking to capabilities </li></ul></ul><ul><ul><li>Great breadth in innovation outcomes – products, services, business models, experiences </li></ul></ul><ul><ul><li>Innovation is driven from marketing and product/service development </li></ul></ul>
  • 6. Market Readers <ul><li>Strategy is to evaluate current competitive landscape and forecast trends to spot emerging opportunities or threats </li></ul><ul><ul><li>Company has an active forecasting, trend spotting and competitive intelligence program </li></ul></ul><ul><ul><li>“ Outside-in” innovation. Rather than discovering needs, discovering opportunities </li></ul></ul><ul><ul><li>Once opportunities are identified, generate ideas to address them </li></ul></ul><ul><ul><li>Great breadth in innovation outcomes – products, services, business models, experiences </li></ul></ul><ul><ul><li>Innovation is driven from strategic teams at enterprise and business line or product teams </li></ul></ul>
  • 7. Risks <ul><li>Technology Drivers </li></ul><ul><ul><li>Solve a problem for early adopters but miss the late adopters and majority </li></ul></ul><ul><ul><li>Assume all innovation is based on technology </li></ul></ul><ul><ul><li>Miss signals from the market or based on customer needs </li></ul></ul><ul><ul><li>Innovation output is only physical products </li></ul></ul><ul><li>Need Seekers </li></ul><ul><ul><li>Place too much emphasis on a subset of customers </li></ul></ul><ul><ul><li>Misread the needs of the marketplace </li></ul></ul><ul><ul><li>Solve short term needs but miss longer term needs </li></ul></ul><ul><li>Market Readers </li></ul><ul><ul><li>Chase interesting but irrelevant trends </li></ul></ul><ul><ul><li>Build scenarios aligned to current strategies </li></ul></ul><ul><ul><li>Identify needs but can’t react in time to benefit </li></ul></ul>
  • 8. Conclusion <ul><li>Using any one of these strategies in isolation is dangerous </li></ul><ul><ul><li>Each perspective is too narrow </li></ul></ul><ul><ul><li>Either ignores the internal capabilities or the external demands and changing markets </li></ul></ul><ul><li>Should use one dominant and at least one subordinate strategy </li></ul>
  • 9. Recommendation <ul><li>Start with Market Reading </li></ul><ul><ul><li>Identify longer term trends and emerging opportunities </li></ul></ul><ul><li>Next, apply Need Seeking </li></ul><ul><ul><li>Within the scenarios identify customer wants and needs </li></ul></ul><ul><li>Then apply Technology Development </li></ul><ul><ul><li>What capabilities or technologies can we bring to bear on those needs within the scenario </li></ul></ul>

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