Some thoughts on structuring a successful Business Innovation Strategy. I include a simple template - too often I encounter businesses being to to "innovate!!" without any clear indication of what this might actually look like.

1. Business Innovation Thoughts!
Dr. Russell Walker
rwalker@p-innovate.com

2. • There are compelling (although often anecdotal) reasons to innovate and the
economics of successful innovation is clear although not specific.
• Innovation, like all other business processes, must be managed.
• Technology can always be acquired elsewhere (licensing, acquisition, fee-for-service,
etc!)
• Product/process &/or technological innovation MUST always be combined with
business model innovation
Walkers Principles of Business Innovation! (1)
© Russell Walker 2018

3. • The lower the technology component of the business the relatively higher the
importance of business model innovation
• The management of research is different from the management of innovation!!!!
innovation!!!!
• Creativity is a necessary (but not sufficient!) requirement for successful innovation –
innovation – and less important than many other components
• The key to success is the innovation management system and the most important part
most important part of this is a clear and concise Business Innovation Strategy
Strategy underpinned by a supportive organisational innovation culture
Walkers Principles of Business Innovation! (2)
© Russell Walker 2018

4. • Continuous product/process improvement
• Improving product design
• Upgrading business model
• Using new technologies to add value to an existing product or
service
• Exploiting a new technology to create a new product, service or
business
• Amending value proposition to introduce existing product or service
to a new market
Examples of Business Innovation
© Russell Walker 2018

5. • Value Proposition
• Target Customer (Market) and Target customer Interaction
(Marketing Channels)
• Distribution (“Making the right quantities of the right products or
services available at the right place, at the right time to the right
people”)
• Brand Management
• Resources
• Supply Chain
Business Model Innovation
~9 Degree’s of Freedom
• Partnership(s)
• Cost Structure
• Revenue Model
© Russell Walker 2018

6. (1) Preface by CEO
• Innovation strategy and innovation process for organisation in the
context of its vision and strategy
(2) Introduction
• Background context, strategy’s significance, what it should govern,
how long valid, update schedule, responsible officer / department
(3) Executive Summary
• Short and punchy! Can be used in internal and outgoing
communications, esp. if strategy details are confidential
Writing a Business Innovation Strategy
© Russell Walker 2018

7. (4) The Organisation’s Development
• Brief history, vision, strategy and objectives
(5) Current Innovation Processes
• Description of planning, implementation processes, management,
administration, responsibilities
(6) External Changes and Strategic Challenges
• Key trends and changes that are currently, or may, affect the future
of the organisation
© Russell Walker 2018
Writing a BIS (Cont)

8. (7) Operational Challenges
(8) Resources (Internal and External) and Knowledge (I&E)
Required to meet Strategic Challenges
(9) Focus and Implementation
• Overall direction of innovation in the next 3 – 5 years; description of
the areas of innovation focus; priorities; programs, projects and
activities
(10) Management and Administration
© Russell Walker 2018
Writing a BIS (Cont)

9. Summary
Template Business Innovation Strategy
• Preface by CEO
• Introduction
• Executive Summary
• The Organisations
Development
• Current Innovation
Processes
• External Changes & Strategic
Challenges
• Operational Challenges
• Resources and Knowledge Required
to meet Strategic Challenges
• Focus and Implementation
• Management and Administration
© Russell Walker 2018