Post by eti800 on Feb 12, 2024 7:11:54 GMT -5
Strategic innovation as a competitive lever
First, it is very possible that the market in which you compete is mature. That there is an established segmentation and a solid leader who leads the way. A leader who invests in incremental innovation (not in strategic innovation) and who takes great care in maintaining the status quo of all competitors (including yourself), taking care of the stability of the common business and ensuring that competition is carried out without destroying that market, that feeds you all.
Secondly, in a mature market (which is usually a source of recurring income for all participants) it will never make sense to innovate in a disruptive way, because that would mean destroying that market, to create a new one, with the risk that this entails. . Would any CEO in his right mind be capable of destroying the market that supports his activity? Obviously not. And if he did, he would be fired by his shareholders.
Therefore we are in a scenario in which our market is mature. We have a stable position, but we sense or know that it is outdated and we must create a strategy that allows us to safeguard the activity of our company in the medium and long term. In other words, we are obliged to look for new business opportunities, which to a greater or lesser extent are related to our current business and which can be addressed with a large part of our current capabilities and abilities.
The three steps
To carry out this search, the most sensible thing is to create a portfolio of opportunities, in which two types of innovations are distributed over time: incremental Denmark Email List and disruptive. The former provide dynamism to the organization, are quick and easy to implement; The latter have greater risk, since they imply the creation of a new market and that is not easy or cheap. The key is to achieve a balance between both types of opportunities.
In any case, the process is very similar. We start from a strategic review of the company and update the strategic plan, with a vision of no more than 3 years, we place ourselves on a vision focused on our client and we draw 3 lines of work: one based on line extension, another on diversification and, finally, another based on the development of new markets. And in this order.
For each line, future competitive scenarios are built, we question what types of rules will govern them, how the needs that we currently cover can be covered and what value proposition is the most appropriate, to decline it in products and services. Finally, we analyze what implications it has on our business model to adapt the current one or take advantage of that opportunity with a different one. (Download our infographic.
First, it is very possible that the market in which you compete is mature. That there is an established segmentation and a solid leader who leads the way. A leader who invests in incremental innovation (not in strategic innovation) and who takes great care in maintaining the status quo of all competitors (including yourself), taking care of the stability of the common business and ensuring that competition is carried out without destroying that market, that feeds you all.
Secondly, in a mature market (which is usually a source of recurring income for all participants) it will never make sense to innovate in a disruptive way, because that would mean destroying that market, to create a new one, with the risk that this entails. . Would any CEO in his right mind be capable of destroying the market that supports his activity? Obviously not. And if he did, he would be fired by his shareholders.
Therefore we are in a scenario in which our market is mature. We have a stable position, but we sense or know that it is outdated and we must create a strategy that allows us to safeguard the activity of our company in the medium and long term. In other words, we are obliged to look for new business opportunities, which to a greater or lesser extent are related to our current business and which can be addressed with a large part of our current capabilities and abilities.
The three steps
To carry out this search, the most sensible thing is to create a portfolio of opportunities, in which two types of innovations are distributed over time: incremental Denmark Email List and disruptive. The former provide dynamism to the organization, are quick and easy to implement; The latter have greater risk, since they imply the creation of a new market and that is not easy or cheap. The key is to achieve a balance between both types of opportunities.
In any case, the process is very similar. We start from a strategic review of the company and update the strategic plan, with a vision of no more than 3 years, we place ourselves on a vision focused on our client and we draw 3 lines of work: one based on line extension, another on diversification and, finally, another based on the development of new markets. And in this order.
For each line, future competitive scenarios are built, we question what types of rules will govern them, how the needs that we currently cover can be covered and what value proposition is the most appropriate, to decline it in products and services. Finally, we analyze what implications it has on our business model to adapt the current one or take advantage of that opportunity with a different one. (Download our infographic.