The Innovation Advantage Integrating Innovation Into Strategy Donna C. L. Prestwood & Paul A. Schumann, Jr. Glocal Vantage, Inc.
Outline • Introduction • Definition of Innovation • Types of Innovation • Strategy & Innovation • Innovation Tools • Break • Recap • Factors of Innovation • Innovation Strategies • InnoVantage Perspective • Guidelines for Successful Strategic Innovation Glocal Vantage, Inc.
Creativity Informatization Knowledge management Continuous, integrated education Innovation Digitization Mass customization Virtualization Interactive integration Disintermediation Immediacy Glocalization Characteristics of the New Economy Glocal Vantage, Inc.
Information Technologies Glocal Vantage, Inc.
Key Information Technologies • Computer • Internet • Telecommunications • Image • Software systems Glocal Vantage, Inc.
Innovation • The basic function of business • The basis of all competitive advantage • The means by which enterprises anticipate and fill customer needs • The way in which enterprises utilize technology • Endows resources with a new capacity to create wealth or creates a new resource • Results from the enterprise’s way of implementing new ideas, of turning the creative concepts of its members into realities • Can cause change or exploit change Glocal Vantage, Inc.
Strategic Innovation • Strategic innovation is the purposeful and organized search for changes, and the systematic analysis of the opportunities and threats such changes might offer for the creation of wealth. Glocal Vantage, Inc.
Examples of Innovation • What are some examples of innovation? • Discussion Glocal Vantage, Inc.
Types of Innovation • Nature • Product • Process • Procedure • Class • Incremental • Distinctive • Breakthrough Glocal Vantage, Inc.
Nature of Innovation • Product • Things interacting with things • Customer function or form • Process • People interacting with things • Way product is developed, produced, provided, etc. • Procedure • People interacting with people • How products and processes are integrated into the enterprise Glocal Vantage, Inc.
Breakthrough Distinctive Incremental Class of Innovation Glocal Vantage, Inc.
The S-Curve and Innovation Incremental Breakthrough Incremental Distinctive Productivity Incremental Distinctive Time Incremental Glocal Vantage, Inc.
InnoVantage Grid Breakthrough Incremental Distinctive Product Process Procedure Glocal Vantage, Inc.
Personal Computer History • What is the innovation history of the PC? • Discussion Glocal Vantage, Inc.
Product Process Procedure Incremental Distinctive Breakthrough PC (1970s): Researchers & Hobbyists Glocal Vantage, Inc.
Product Process Procedure Incremental Distinctive Breakthrough PC (1981 - 1986):Market Development Glocal Vantage, Inc.
Product Process Procedure Incremental Distinctive Breakthrough PC (1987 - 1993):Cloning Glocal Vantage, Inc.
Product Process Procedure Incremental Distinctive Breakthrough PC (1993 - 1995):Market Expansion Glocal Vantage, Inc.
Product Process Procedure Incremental Distinctive Breakthrough PC (1995 - ?):Windows on the World Glocal Vantage, Inc.
Innovation Tools • What are some tools or techniques that encourage innovation? • Discussion Glocal Vantage, Inc.
Product Process Procedure Incremental Distinctive Breakthrough TQM Glocal Vantage, Inc.
Product Process Procedure Incremental Distinctive Breakthrough JIT Glocal Vantage, Inc.
Product Process Procedure Incremental Distinctive Breakthrough Reengineering Glocal Vantage, Inc.
Innovation Factors • What are the factors of an enterprise or its market that affect innovation? • Discussion Glocal Vantage, Inc.
Strategy • Manner in which an enterprise intends to gain a competitive advantage • Describes actions aimed directly at altering the strength of the enterprise relative to its competitors • Allows the enterprise to gain relative advantage through measures competitors find hard to follow • Requires application and interaction of identification, analysis and synthesis Glocal Vantage, Inc.
Innovation Strategies • Customer driven • Competition driven • Technology driven • Stakeholder driven (external & internal) • Project driven • Resource driven • Culture driven Glocal Vantage, Inc.
The Glocal Vantage Point Market Enterprise Capability Stakeholders Strategy Enterprise Capacity Glocal Vantage, Inc.
The Market Social Political Competitors Customers Technologies Economic Scientific Demographic Opportunity Threat Glocal Vantage, Inc.
Driving Forces for Change Political Economic Social Organization Scientific Demographic Glocal Vantage, Inc.
Customers, Competition & Technology • Customers • Present • Identified potential • Unidentified potential • Competition • Direct • Indirect • Structural • Technology • Direct • Supportive • Enabling Glocal Vantage, Inc.
Stakeholders • Stockholders • Employees • Customers • Suppliers • Strategic partners • Communities Glocal Vantage, Inc.
Enterprise • Projects • Resources • Capital • People • Strategic relationships • Facilities, equipment & land • Intellectual property • Culture Glocal Vantage, Inc.
Guidelines for Strategic Innovation • Define the “window of opportunity’ • Delineate the market • Delight customers • Anticipate competition • Forecast technology • Appraise resources & capabilities • Assess stakeholders • Incorporate the purpose and culture of the enterprise Glocal Vantage, Inc.
Glocal Vantage, Inc. • PO Box 161475 • Austin, TX 78716 • (512) 632-6586 • firstname.lastname@example.org • www.glocalvantage.com • http://incollaboration.com • Twitter: innovant2003 Glocal Vantage, Inc.
Paul Schumann • Futurist and innovation consultant • Application of web 2.0 to market & strategic intelligence systems • Web 2.0 tools & technologies • Application of web 2.0 to democratic processes • Broad perspectives on the future • Services • Strategic market research & technology forecasting • Intelligence systems consulting • Seminars, webinars & presentations Glocal Vantage, Inc.
This work is licensed under the Creative Commons Attribution license. You may distribute, remix, tweak, and build upon this work, even commercially, as long as you credit me for the original creation as Paul Schumann, Glocal Vantage Inc, www.glocalvantage.com. Glocal Vantage, Inc.