Strategy shift: Integrating strategy and the firm’s capability to innovate (original) (raw)
Innovative Companies' Approach To Innovation Strategy
Muma Business Review, 2023
The novelty created by these two activities is a benefit that somehow affects profitability (Beckenbach & Daskalakis, 2013; Kaiserfeld, 2020). The point of difference between these two concepts is their operational capability. Although creativity and innovation both originate from the creation of new knowledge, innovation is the product of new knowledge that can be operationalized to change, improve, and optimize existing systems (Durst & Edvardsson, 2013; Kim & Pierce, 2013; Kabir, 2019; Nakao & de Andrade Guerra, 2021). This change, improvement, and optimization does not always mean extensive changes in technology; even a small change to improve service delivery is considered an innovation. Based on our literature analysis, companies must view innovation
Reconfiguring the Firm’s Assets for Innovation
Journal of technology management & innovation, 2020
The innovation process and the generation of sustainable competitive advantage are permanently on the agenda in technology management. According to Teece (2007), one way to achieve a competitive advantage is to develop dynamic capabilities, a process in which the author identifies three moments: i) to perceive and shape opportunities and threats (sensing), ii) to grasp the opportunities (seizing), iii) to increase, to combine, to secure and, when necessary, to reconfigure the tangible and intangible assets. The aim of this paper is to investigate how the strategic internal changes were introduced to influence on developing the innovation capability in order to sustain and expand the competitive advantages of the firm. To do so, a case study was carried out in a firm that work within the furniture sector more than 30 years and took decision to increase its competitive advantage by investing in product design, what created conditions for the development of new capabilities. Interviews were conducted using questions that allowed the respondents to freely express their experiences and perceptions about the changes that have occurred in their sectors as a result of this process and was possible to identify the intensity of reconfigurations in capabilities that resulted from the creation of the Design Center.
A Focused, Competitive Strategy through Innovation
Through the process of innovation, organisations create technological growth. Successful innovation creates customer value through new products and services, and it could give rise to new markets. Successful innovations contribute to better quality, higher productivity, lower costs and increased profits. One of the ultimate goals for implementing innovation is to achieve a competitive advantage that leads to outperforming competitors. Through the understanding of the innovation processes, organisations can bring predictability into their innovation efforts. This comes from understanding and managing the forces that influence the decisions made by managers. Because of globalisation and fierce competition Spescom DataVoice, a South African technology company, is finding it increasingly difficult to compete in an international market. It is against the background of Spescom DataVoice‟s need to increase its innovation productivity that this research was spawn. The ambitious goal of this study was to investigate what Spescom DataVoice can do to become sustainable, innovative and competitive in its market space. This research firstly captured the important themes and theories around the subject of innovation and how it relates to strategy. The literature study will try to look into all the important work, especially well-known research and its significance. Lastly, the research will apply the knowledge gained by discussing the research questions relating to Spescom DataVoice‟s particular situation. The research will discuss the innovation capabilities and perspectives that Spescom DataVoice should focus on; the environment that is needed for sustainable continuous innovation; and innovation strategies that Spescom DataVoice could employ to improve its innovation productivity.
Strategic breakthroughs as flagpoles of innovation process
International Journal of Business Innovation and Research, 2016
This paper empirically investigates the innovation process, from ideation to market leadership. The focus is on the nature of innovation process, action-outcome linkage, and learning from the environment. Our conceptualization of the innovation process being a series of strategic breakthroughs is built on the experiences of Samsung Electronics in creating two world-class products: microwave ovens and semiconductors. Our findings demonstrate that the process of innovation progresses through the occurrence of four types of strategic breakthroughs: Entry, Platform, Springboard, and Leadership. Based on our analysis, we infer that the process of innovation is more predictable and controllable in its early stages, but turns random in the later stages. Our explanation for such behavior adds to the current understanding of innovation process. We also describe the role played by the external (environmental) and internal (organizational) factors in facilitating the emergence of strategic breakthroughs.
Knowledge begins life as a public good available to all (non-rival and non-excludable), and as an input into the generation of additional knowledge is made, it subsequently becomes artificially scarce as countries grants intellectual property rights to stimulate investment in the production of private knowledge goods (Maskus and Reichman, 2004). However, patent policy has strongly sought to protect intellectual property rights and investment made by innovation rather than by strengthening the tradability of R&D inventions in a market thereby ensuring economic growth (Troy, 2012). Changes in the external and internal business environment may induce a redirection of company strategy, which can result in the destruction of a company’s valuable intellectual assets (people and knowledge), generated through formal R&D investment. These intellectual assets may be of value to both the company and society, and their termination of projects as a consequence of the re-shaping of company R&D portfolios may result in the destruction of knowledge useful to society.
In Search Of Innovation: Exploring The Dynamics Of Innovation
2016
HMS Industrial Networks AB has been recognized as<br> one of the most innovative companies in the industrial<br> communication industry worldwide. The creation of their Anybus<br> innovation during the 1990s contributed considerably to the<br> company's success. From inception, HMS' employees were<br> innovating for the purpose of creating new business (the creation<br> phase). After the Anybus innovation, they began the process of<br> internationalization (the commercialization phase), which in turn led<br> them to concentrate on cost reduction, product quality, delivery<br> precision, operational efficiency, and increasing growth (the growth<br> phase). As a result of this transformation, performing new radical<br> innovations have become more complicated. The purpose of our research was to explore the dynamics of<br> innovation at HMS from the aspect of key actors, activities, and<br> events, ov...
Journal of Product Innovation Management, 2008
Does a product innovation strategy change at company headquarters resonate the same way at different strategic business units (SBUs)? What factors play a role in differing implementation of new innovation strategies? A collective case study was conducted at three SBUs of an international conglomerate to investigate why the SBUs implement the same corporate innovation charter in vastly different manners, both in strategic processes and in organizing for new product development (NPD). This study's contribution to the literature is twofold. First, it develops initial insights into how three SBUs implement diverse SBU-level innovation strategies in response to the same product innovation charter. Second, it extends the findings of previous studies on NPD strategy by presenting how three SBUs reshape their structure and resource allocation, changing various dimensions of their innovation strategy while also fitting the competitive structure in their individual, non-high-tech, traditional manufacturing industries as they respond to the corporate mandate. In this study, several factors were observed to influence a firm when formulating a new product innovation strategy. First, past performance and strategic typology constrain the innovation paths available. Poor past performance limits available resources whereas the strategic typology managers use limits their ability to recognize other opportunities. Next, capacity constraints provide a catalyst in moving toward process improvements. Third, management involvement in the day-today implementation of change is necessary to ensure that the new processes are implemented. Finally, corporate performance metrics are quite influential in how SBUs adapt to change. This study identifies that even with the immense power corporate has over these SBUs, some still dance to their own tune, ignorant of their deviation from the corporate mandate because the metric is not sufficient to detect these deviations. This study suggests the use of multiple types of metrics to minimize the likelihood of nearsighted responses to innovation charter changes.
Building the Relationship Between Innovation and Strategy
Innovation is widely regarded as a process of significant change, which can support business development in increasingly dynamic market. Steve Jobs, co-founder of Apple Computers, said: Innovation is the difference between a leader and an executive. Drucker believed that in the modern economy, knowledge has replaced labor and raw materials as a key resource.
Technovation, 2005
Managing innovation is one of the key strategic challenges facing firms in many industries. The nature of competitive capabilities has resulted in conditions of hyper-competition within many industries and both new entrants and existing players have little choice but to innovate speedily and with success in new product introductions. However, this is only part of the 'world of innovation'. Products and processes in other sectors also need to be innovated, and this often proceeds in a no less appropriate manner for the environment in which those firms operate. This paper presents a typology of innovation firms. It does not pretend to be exhaustive but aids our understanding by drawing upon a range of empirical studies of innovation practices. A classification of firms is proposed, which assists in understanding the different policies, practices and levels of performance in each category. In addition, it differentiates the rates of improvement, and shows some of the latest thinking and practices from the highest performing firms and the nature of the challenge for the rest. q
World Journal of Advanced Research and Reviews, 2023
The goal of this study is to emphasize growing sectors of management of innovation topics, and also to provide a summary on the most essential themes and objectives for academic investigation and managerial practice. It continually brings to fresh responses, fresh concepts, or novel forms of business. Each modern dance business's core competitive edge appears in its ability to create its own firm. The purpose of the piece is to emphasize the crucial role of innovation in the operation of today's corporations. Operations founded on innovations have an essential function for promoting affluence and developing and preserving a competitive advantage. The state to play of the Indian IT sector, with a strong focus on innovation-driven company models, indicates that the present time may be an ideal time to perform this investigation.