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Innovation Strategy - Few approaches to innovation
Innovation Strategy - Few approaches to innovation
Innovation Strategy - Few approaches to innovation
Innovation Strategy - Few approaches to innovation
Innovation Strategy - Few approaches to innovation
Innovation Strategy - Few approaches to innovation
Innovation Strategy - Few approaches to innovation
Innovation Strategy - Few approaches to innovation
Innovation Strategy - Few approaches to innovation
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Innovation Strategy - Few approaches to innovation

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Innivation, Innovation Strategy, market, oppertunity search

Innivation, Innovation Strategy, market, oppertunity search

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  1. Innovation Strategy Sundeep Mohanty This is a very brief research paper on innovation and different strategies for innovation. Here the focus of the research is to show correlation between Time, Market and opportunities.Sundeep_mohanty@yahoo.com 7/27/2012
  2. Page 1 of 8ContentsTime, Opportunity and Market Correlation Diagram: .................................................................................. 2Abbreviations: ............................................................................................................................................... 3Summary: ...................................................................................................................................................... 3 Three steps to convert idea to opportunity and opportunity to innovative product/service:................. 4 1. Visualize, Realize and Prioritize [VRP] Analysis: ............................................................................ 4 2. Look for opportunities – Open, Focused or Hybrid [OFH] Model:................................................ 5 3. Explore, Establish and Expand Model: .......................................................................................... 8 Page 1
  3. Page 2 of 8Time, Opportunity and Market Correlation Diagram:Above diagram indicates how market moves with time and how past untapped opportunities are nowparts of today’s competitive market. Most of the leading innovative Organizations falls under the greenzone (zone-3 in below diagram) and keep trying to stay ahead in the market by investing and exploringthe untapped market and trying to explore new opportunities and zone-4 of below diagram is the zoneto find opportunity. While majority of other Organizations are competing with each other in the extremered zone (Zone-2 in below diagram) and because of high competition and high supply, the profit marginin red zone is less. The Organizations which falls in zone-1 are in high risk, without any product/servicegradually falling behind in competition and have very less to compete and survive unless until they don’t Page 2
  4. Page 3 of 8have any new innovation to bring them back to competition. Organizations which are in zone-5 also arevery risky in their business model (example: www.planetaryresources.com), because the product andservice they were planning to sell don’t have demand as well as market aware about that and sometimethe business model for this type of business not get evolved fully to realize its effectiveness.Abbreviations:VRP Analysis: Visualize, Realize and Prioritize AnalysisOFH Model: Open, Focused and Hybrid modelsEEE Model: Explore, Establish and Expand modelIC: Idea ContributorIGT: Innovation Governance TeamBPDT: Business Plan Development TeamBP: Business PlanOSC: Organizational Steering CommitteeFG: Focus GroupCFC: Core Focus CommitteeIM: Innovation ModeratorSummary: Above “Time, Opportunity and Market correlation” diagram explains how the market moveswith time and why it is important to look for new opportunities or create new opportunity. With time, need changes and things of future look current. For example, six to seven years backsmartphone technology was far from reality however, in today’s market it is a reality, as demand forsmart phone increasing many companies are now in smartphone business with Apple and Samsungleading the smartphone market. In another 4 to 5 years, smartphone phones going to be very commonand slowly will get saturated with high supply (though demand may increase) until unless some newtechnology revolution brings some face-lift to the smartphone devices. Page 3
  5. Page 4 of 8 In current market condition, most of the Organizations understand the importance of researchand innovation. However, looking beyond the current market and foreseeing future is not an easy task,it needs proper planning to control future catastrophe. Therefore, when Organizations are realizing the importance of innovation, it is necessary tounderstand how to drive innovation initiatives. Here I am trying to explore few innovation strategies,like “open innovation”, “focused innovation” and “hybrid innovation”. Though it is difficult to decide onebest approach, I feel for mid-sized to small-size established Organization should go for “focusedinnovation”, whereas big Organizations can go in either way as they have enough budget to conductmore research activities, while entrepreneurial Organizations can target any one of the aboveinnovation tactic depending on entrepreneurial resources. Below providing three steps which I feel will help deciding how to create strategy for innovationand create opportunity in the market.Three steps to convert idea to opportunity and opportunity to innovativeproduct/service: 1. VRP Analysis 2. Look for opportunities- OFH Model. 3. Stay focused on core Strategy- EEE Model 1. Visualize, Realize and Prioritize [VRP] Analysis:Visualize- Try to place your Organization in the above diagram depending on current product, service,market demand, etc. Before taking any step I feel it is important for Organizations to find where it standin current market. Try 360-degree visualization by considering different viewpoints and then find acommonly agreed view for current Organizations position.Realize- Once Organization creates visualization, then focus on realization. Evaluate Organizationsvision and mission, create strategy where and how you want to take the Organization, try to foreseewhere you think competitors are heading, how competitive you think future going to be, try identifyingissues, gap in business model, etc. Page 4
  6. Page 5 of 8Prioritize- In this step, work on all the issue you identified and all the market analysis you did inprevious two phases. Create short term and long term goals, create action plans to meet the goals. Onceyou create the action plan, it is important to prioritize the action plans and start working as per priorityof the action plan. 2. Look for opportunities – Open, Focused or Hybrid [OFH] Model:The approach for innovation and looking for new opportunities is not simple, Organizations really needto understand their capability, liquidity, current consumer base and target market.N.B.: Below I am not going to discuss implementation approach and who will own the innovation effort.Depending on what type of effort needed, what type of technology and human resource needed, theimplementation responsibility and ownership may vary. For example- if the innovation opportunity isrelated to mobile technology, then it may come to IT innovation team and then to IT development team,but if the idea is to improve HR related process, then it should be managed by HR department withsupport from innovation team. Page 5
  7. Page 6 of 8Open Innovation: i. The free flow approach ii. Free and open for any new opportunity, then try to correlate with current business. iii. Expect innovation ideas from individuals, which may or may not follow Organization’s vision and mission. iv. There is no hard rule to focus on any particular area. v. Idea Contributor (IC) may be internal or external to the Organization. vi. Need more time for evaluation, may incur loss of time if the plan not fits with Organizations mission, obstacles in its implementation feasibility, etc. vii. The Innovation Governance Team (IGT) can then communicate with the Idea Contributor (IC) to understand the idea. viii. Innovation Governance Team (IGT) needs to ensure the feasibility of converting the idea to an opportunity for the Organization. ix. Innovation Governance Team (IGT) needs to work with Organizations Business Plan Development Team (BPDT) to prepare a business plan (BP). x. Innovation Governance Team then forwards the plan to Organizational Steering committee (OSC) for approval. xi. Once approved, forward the plan to appropriate department/team for implementation. xii. This approach brings freedom to think new ideas, but some time it is difficult to manage and sometimes plans are very scattered and overlapping. xiii. More work for innovation governance team (IGT) and less time to work or think about other innovation initiatives. this strategy is OK for Organizations where research and innovation budget are flexible and always available, lead-time to bring something to market is not very tight and demanding, Organization is should feel OK to spend time and other resources without expecting success for all or most of the ideas. For mid-size to small size companies this approach is not very suitable, because sometimes you spend more time without correlating the opportunity with current position of the organization and its vision. Page 6
  8. Page 7 of 8Focused Innovation: 1. Focus on Organizations vision and mission. 2. First, create roadmap for Organization. 3. Evaluate strength, weakness, Opportunity and threat (iterative SWAT in every three month is a most activity). 4. Create Focus Groups (FG) by bringing different internal employees of same interest. Allow external partners to participate and join focus group on which they were interested. 5. Assign them few topics to research and find some new solution and idea, which will bring new market opportunity and bring profit to the Organization. 6. This approach increases interest level for employees and build strong synergy. 7. Gives learning experience to some those who are not familiar with the business to understand business and Organization. 8. Focus group should work with Organization’s Business Planning Team (BPT) to create business plan. 9. Once the focus group ready, they need to present it in front of innovation governance team (IGT) and later to Organizational Steering Committee (OSC). 10. It reduces work for IGT, helps them to oversee more than one innovation initiation simultaneously.Hybrid Innovation:To make innovation more effective and flexible, the best option is to adopt hybrid approach by combining both open andfocused innovation approaches. 1. Allow individuals to bring new ideas. 2. Create different focus group by taking employees from multi discipline Organizations structure those shares subject of interest. 3. Form a Core Focus Committee (CFC) by taking few individuals from each focus team. 4. Let the CFC along with idea contributor (IC) and innovation moderator (IM) from IGT decides to which focus group the idea should go. 5. Once directed the idea to focus group, the focus group will analyze and evaluate the idea in more detail manner from Page 7
  9. Page 8 of 8 different prospective and provide the recommendation to IGT, which will again evaluate the plan and send its recommendation to OSC.6. This is very systematic and incremental approach, with each move from one group to other, it can produce various analysis and matrix, reduces work for IGT, with move from one phase to other it bring more detail about the idea and its benefits and help in filtering out or help realizing importance of the opportunity. 3. Explore, Establish and Expand Model: This is very simple approach which uses all the above explained analysis and models. Explore: To explore own organization, market and competitor. “Visualize” and “Realize” analysis explained above falls under it. More the Organization knows about itself, its vision/mission, consumers and market evolution better it will be equipped with its plan and preparation. Establish: Once you pin-pointed Organizations current and future path, let’s focus on its implementation and presentation. “Prioritize” mechanism mentioned above is part of establish phase. How much customer acceptability your product/service is getting depends on how you delivering and presenting to the customer. This is the phase where I believe Organizations most of the departments and groups involved, so better coordination is the key. Expand: Once you established your business and Organization in delivering products and service effectively don’t sit back and relax, in market if something gets “established” that also brings competition and more attack from competing business establishments. So once the Organization reaches in its peak of sale or sees more competitions then you need to realize to work on new opportunities, it can be bringing new products, remolding old products, reaching out to new regions or segments. Page 8

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