Home Education What is an Innovation Strategy and How to Formulate One

What is an Innovation Strategy and How to Formulate One

by Ragini Salampure
What is an Innovation Strategy and How to Formulate One

You may ask what is innovation strategy and how does it help my business? Well let me tell you, innovation is one of the most critical elements to any successful business. It helps businesses grow market share and increase profits by introducing new products and services that their customers want. However, it can be difficult for business owners to know where they should innovate or how to go about doing it without risking too much of their resources. This blog post discusses what an innovation strategy is, the different types of innovation strategies, and provides some tips on how you can formulate one for your own company!

What is an innovation strategy?

Innovation strategy is a plan to grow market share or profits through product and service innovation. When looking at innovation strategy through a jobs-to-be-done lens, we see that an effective strategy must correctly inform which job executor, job, and segment to target to achieve the most growth.

If you implement a  strategy that does not target the right job executor, you may end up wasting time and resources on features or products that will never sell.

It is important to note that when it comes to innovation strategy, there are two types: high-risk strategies (which require a lot of expenditure) and low-risk ones (requiring less investment).

High-risk innovation strategies:

* New product or service in a new market segment

Low-risk innovation strategies:

* Improvement of existing products and services, such as new flavors, colors, sizes, etc. (which are already well known)

The different types of Innovation strategies are:

Product Strategy – Choose a target product or service to improve and grow market share in that area

Market Strategy – Grow your business by targeting different markets with a particular innovation strategy

Segment Strategy – Choose an innovative segment of the same job to focus on when trying to achieve growth.

What are some tips for formulating your own Innovation Strategy?

  • Figure out who you want to target with innovation – Executors (jobs) or Job Segments (types of jobs). Figure this out before proposing an innovation strategy as it will affect how you formulate it.
  • Understand the customer need – Every job has a purpose, and innovation will only be successful if we understand what problems our customers are trying to solve. With this understanding, we can know which jobs (executors) or segments of jobs (job types), should receive innovation efforts first.

What are some things you should consider when developing an Innovation Strategy?

  • Customer needs
  • Company resources and capabilities
  • Current competition in the market space – Trends in customer behavior or expectations

Types of Innovation Strategies: What are some types of innovation strategies? 

  1. Redefining Product Benefits: Changing what customers think your product does to meet their needs
  2. Redesigning the Product: Enhancing your product to be more customer-centric
  3. Creating New Products or Services: Introducing new products and services that customers may not know about yet!

How do you formulate an Innovation Strategy? Here are some tips for how to go about doing it yourself!

  • Define the company’s specific innovation goal
  • Conduct market, customer and product research to identify opportunities for new products or services
  • Evaluate current resources and capabilities of your business to determine if they are capable of supporting a particular type of strategy
  • Identify potential risks in pursuing an opportunity. Factor these into deliberations
  • Evaluate the current market to see what others are doing and how they’re positioned

Summary:

Innovation is a process that businesses can use to stay ahead of the competition. It’s not just about coming up with new products and services, but also finding ways to improve existing ones. The innovation strategy you develop should encompass both types of innovations in order to keep your business relevant and competitive for years to come! If you want some help formulating an effective strategy on your own or would like someone else to do it for you, then we are here for you at Strategyn . You’ll be glad that you did because having an innovative company drives sales and keeps investors happy too! What’s holding YOU back from taking this next step?

You may also like