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Competing through innovation - Innovation strategy

Q: How to describe the modern market?

- Revolution – in the ways industries and markets operate and the sources of competition which become important, and consequently in the strategies that successful organizations pursue - Reinvention – in the creation of new business models that make traditional ways of doing business obsolete as routes to delivering and sustaining superior customer value - Renewal – in the strategies of change and repositioning by companies whose business models have become outdated, as they rebuild and respond to change. Increasingly the priority is not just short-term performance but building the robustness to bounce back, to change, to survive, to turn things around.

Q: What issues are highlighted by radical change?

- Disruptive innovation – innovation that changes the way an industry operates - Cannibalization – the resulting forces that drive successful companies to compete with themselves. - Value innovation – the companies that pioneer change with increasingly perverse customers - Big ideas – nurturing the big ideas that will change an industry - Innovation networks – the shift in managing innovation to open business models and cross-boundary collaboration. - Globalization – may be one of the most importance sources of radical innovation.

7 important questions on Competing through innovation - Innovation strategy

How to describe the modern market?

- Revolution – in the ways industries and markets operate and the sources of competition which become important, and consequently in the strategies that successful organizations pursue
- Reinvention – in the creation of new business models that make traditional ways of doing business obsolete as routes to delivering and sustaining superior customer value
- Renewal – in the strategies of change and repositioning by companies whose business models have become outdated, as they rebuild and respond to change. Increasingly the priority is not just short-term performance but building the robustness to bounce back, to change, to survive, to turn things around.

What issues are highlighted by radical change?

- Disruptive innovation – innovation that changes the way an industry operates
- Cannibalization – the resulting forces that drive successful companies to compete with themselves.
- Value innovation – the companies that pioneer change with increasingly perverse customers
- Big ideas – nurturing the big ideas that will change an industry
- Innovation networks – the shift in managing innovation to open business models and cross-boundary collaboration.
- Globalization – may be one of the most importance sources of radical innovation.

What is disruptive innovation?

The distinguishing characteristic of the disruptive technology is that it does the job worse than the existing technology – but it is cheaper. However, as disruptive technologies improve over time, and get to do the job adequately, then their lower prices drive the existing technology out of the market. Disruptive technologies are fundamentally different to conventional or ‘sustaining’ technology.

What is proactive cannibalization?

Proactive cannibalization – when someone is going to compete with you and attack the sales of your products and services, so you might as well do it yourself and retain the customers.

What is meant by 'Big ideas'?

Big think strategy’ – the ability to create and resource big ideas, and to overcome inertia, narrow-mindedness and risk aversion that provide barriers to true innovation.

What is an innovation network?

‘Hotspots’ are points where people work together in exceptionally creative and collaborative ways. For hot spots to emerge, they need:
1. A cooperative mind-set
2. An ability to span boundaries
3. A successful igniting of purpose

Why is globalization a part of innovation?

The globalization of innovation suggests new approaches and models from which to learn. Radical innovation lies at the heart of strategic thinking in many companies and the new context is global.

The question on the page originate from the summary of the following study material:

Marketing Strategy and Competitive Positioning, 7th Edition | 9781292276557 | Prof Graham Hooley, et al

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Competing through innovation - Innovation strategy

7 important questions on Competing through innovation - Innovation strategy

How to describe the modern market?

What issues are highlighted by radical change?

What is disruptive innovation?

What is proactive cannibalization?

What is meant by 'Big ideas'?

What is an innovation network?

Why is globalization a part of innovation?

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