A Strategic Innovation

8/8/2019 A Strategic Innovation

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A STRATEGIC INNOVATIONPROCESS MODEL

10/30/2010 1FOSTIIMA Business School


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PASSION AND GOALS

1. Mission and Goals

Goal Pull A firm sets some goals-for example, to be number one

or two in any market it enters-and then usesinnovation to achieve these goals

Innovation Pull A firm that is endowed with some unique capabilities,

which enable it to recognize and exploit innovation,may make its goal to be the most profitable firm in theworld, or to have the highest market share in anymarket that it uses its capabilities to enter.

10/30/2010 FOSTIIMA Business School 2


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Innovation

Use of new knowledge (technical or

market) to offer new products or

services that customers want



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Innovation Strategy

Pattern of activities about when and

how to use new knowledge to offer

new products or services



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Global

Strategy in which firms locate their

development facilities where the

environment is most suitable fortechnological innovation and from

there, they develop products for

world markets



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Globalization Strategy

This answers the question, when

and where (in what country) should

a firm locate what functions in orderto better innovate for world-wide

customers?



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Terms Explained

Backward Integration:

Start producing some inputs

Beta:

Measure of market risk from the

capital asset pricing model (CAPM)



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Terms Explained

Boundary Spanner

Individuals within a team who acts as

the transducer between the team andthe firm (organization) during the

exchange of information that takes

place during the process of innovation



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Terms Explained

Breakthrough Knowledge:

Knowledge that never existed before

Call Option

Right to buy an asset at a specified

price(exercise price) on or before aspecified date (exercise date)



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Terms Explained

Complimentary Innovation:

Other innovations that play an

important role during an innovationprocess

Corporate Strategy:

Answers the question: what business

should the firm be in?



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Terms Explained

Entrepreneurial Rents:

Profits from innovation

Era of Incremental Innovation:Phase of a technology life cycle, following

the emergence of a dominant design,when technological uncertainty is

considerably reduced and attention isfocused largely on incremental productinnovation. Same is the specific state.



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Terms Explained

Functional Strategy:

Answers the question: what kinds of

activities should each of thefunctional units (R&D, manufacturing,

marketing, and so on) be engaged in

and what kinds of resources should beallocated to them?



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Terms Explained

IPO

Initial Public Offering

A firms first offering of common stock to the

public



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Terms Explained

Invention:

New idea, concept, technique, device,

or process that has not beencommercialized

Joint Venture:

Separate legal entity set up by two ormore firms with ownership rights toits output



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Terms Explained

Process Innovation:

Use of new methods, techniques,

materials, task specifications, orequipment in an organizations

manufacturing or service operations

to offer a lower cost or better qualityproduct



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Terms Explained

Limit Pricing

When incumbents lower current

prices to discourage new entrantsfrom entering a market



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Limit Pricing

NIH-Syndrome:

Not-invented-here

Situation in which a group or firm rejects anidea, technology, or innovation, regardless of

its merits, just because it is from outside the

organization



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Strategic Innovation Process1. Goals

4. Choice of

profit site

2. opportunities

Innovation

and threats

3. Capabilities

5. Business

Strategy

6. Innovation

Strategy

7. Functional

Strategy

8. Globalization

Strategy

Strategic

Direction

11. People9. Structure 10. Systems or

processes

12. Profit and

their protection


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2. Innovation and Threats



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3. Identifying Capabilities



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4. Choosing a Profit Site



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5. Business Strategy



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6. Innovation Strategy



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7. Functional Strategies



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8. Globalization



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9. Organizational Structure



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10. Systems or Processes



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11. People



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12. Profits and Their Protection


Documents

A Strategic Innovation