In today’s fast-paced business environment, innovation is not a luxury; it’s a necessity. Companies that fail to innovate risk becoming obsolete and losing market share to more agile competitors. However, innovation is not a random act but a structured process that can be planned and executed. Here’s a comprehensive guide to creating your company’s innovation strategy, broken down into the essential components: What, Why, When, How, Where, and Who. This article is formed from a previous article by Drew Boyd from SIT.
What: Identifying the Scope of Innovation
Determine Business Lines for Innovation
The first step in crafting an innovation strategy is identifying which business lines within your company need innovation. This could range from product development to customer service.
Prioritize Products or Services
Pinpoint the specific products or services that require innovation within those business lines. This will help you focus your efforts where they are most needed.
Establish a Portfolio Model
Create a portfolio model that compares the innovation output from one business line to another. This will help you allocate resources more effectively.
Rank Order Business Lines
Based on the strength of their innovation portfolio pipelines, rank order the business lines. This will give you a clear picture of where to focus your innovation efforts.
Why: Aligning Innovation with Strategy
Measure the Innovation Gap
Utilize tools like Map-the-Gap to determine how much innovation is needed. This will help you set achievable goals.
Tie to a Strategy Framework
Incorporate your innovation goals into a broader strategy framework like The Big Picture. This ensures that your innovation efforts are aligned with your overall business objectives.
Focus and Link to Strategy
Make sure that your innovation exercises are directly linked to the strategy framework. This ensures that your innovation efforts are not just random acts but are focused and directed.
Identify Market Adjacencies
Use the framework to identify market adjacencies that can be explored for new opportunities.
When: Timing is Everything
Pre-Budget Workshops
Schedule innovation workshops at the front end of the business cycle. This will help determine what projects will get funding in the next budget cycle.
Post-Planning Workshops
Also, schedule innovation workshops after the planning cycle to jump-start new initiatives for the upcoming year.
How: Methods and Integration
Choose Methods
Select specific methods of innovation based on their efficacy and results. This could range from brainstorming sessions to more structured approaches like Design Thinking.
Combine Methods
Don’t stick to just one method; combine different approaches to leverage the strengths of each.
Integrate Methods
Use the output of one method as input for the others to create a seamless innovation process.
Where: Creating the Space
Designate Space
Set aside a space specifically for conducting innovation workshops. The environment can significantly impact the creative process.
Who: The People Factor
Form Dream Teams
Create innovation “dream teams” by bringing together individuals from various departments who can contribute diverse skills and perspectives.
Schedule Training
Ensure that these teams are trained in the methods you’ve chosen for innovation.
Assess Innovation Culture
Examine your company’s innovation culture to identify weaknesses hindering your innovation efforts.
Establish Competency Models
Create an innovation competency model to guide skills development within your teams.
Empower Leaders
Designate and empower commercial leaders responsible for driving innovation efforts.
By systematically addressing these components, you can transform vague ideas into a coherent innovation strategy your team will readily implement. This structured approach ensures that your innovation efforts are aligned with your business objectives, effectively resourced, and have the best chance for success.
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