As digital transformation increases competition across industries, businesses are acknowledging their need for organized innovation efforts.
In order to get started, companies need to map out a corporate innovation strategy, but what exactly is a corporate innovation strategy? And furthermore, how can it help your business? What should you avoid when planning one?
Here we dive into the purpose of maintaining an innovation strategy and how to create an effective one.
Reclaim Your Agency
The goal of any business strategy is to create and reinforce certain guidelines in order to reach an objective. In this respect, an innovation strategy is no different.
An effective innovation strategy focuses a company’s efforts to create groundbreaking changes, whether internally and externally.
Without a coherent and comprehensive innovation strategy, any large organization runs the risk of misalignment, which costs the company time, resources and, ultimately, results. Lack of a dedicated strategy can lead to different departments progressing in diverging directions, each with their own interpretation of what innovation means for the company.
Some companies view innovation not unlike throwing darts. Sure, some of the ideas might stick and become bullseyes, but you have to throw a lot of darts to get to that point.
While there is a kernel of truth in that idea, innovation should not be left entirely up to luck. Continuous and repeated innovation success is driven more by strategy than good fortune.
Avoid the Pitfalls
Innovation strategies are not one-size-fits-all.
While it is true that the biggest innovation spenders invest in radical and external innovation, each company needs to clarify what its corporate goals are and understand how innovation fits into their roadmap.
Many businesses base their strategy on an open innovation approach. Furthering innovation endeavors by collaborating with external companies such as startups and independent software vendors saves companies the time, energy and money it would take to develop and test a technology that already exists elsewhere.
Internal innovation strategies do not give companies the same innovative advantage against their competitors as open innovation does. Even so, some businesses opt for internal innovation as a starting point for innovation or as an addition to their open innovation efforts.
To make the right choice for your innovation strategy, you must consider the broader corporate vision, business goals and market demands.
Prolong Your Success
Every company that aims for longevity should take innovation and innovation strategy seriously.
While investing in a comprehensive innovation strategy can seem daunting, it keeps efforts aligned to ensure effectiveness and impact.
Innovation strategies help to coordinate the disparate needs of all the different departments within a corporation while clarifying how they should collaborate toward the company’s innovation goals, and how they will each benefit from them.
Being a truly innovative company means embracing a culture of constant learning and experimentation. Only then can your company stay ahead of your competitors.