Are we creating or competing in our market?
Too many organisations are focussed on their current market. They constantly strive to benchmark themselves with other players, be the leader and seek to enhance market share. They do this by finer segmentation of the market, creating superior products and offering higher service levels.
The challenge with this approach is that markets become ultra competitive, margins drop and generally costs increase. Organisations also discover that competitors copy or improve your strategy and they forced to repeat this cycle again.
True market creation on the other hand focusses on redefining the market boundaries, tapping hitherto unserved customers and creating value innovation.
Our innovation strategy development work focuses on developing growth and profitability using a 3 horizon approach to innovation
Our approach to innovation strategy development is based on three principles
Market creators think very differently from those who are focussed on competing in their existing markets.
They challenge the factors that are the basis of the existing benchmarks and offerings of the industry.
Their perspective goes beyond the environment and current conditions of their industry.
This enables them to see opportunities that are way beyond existing value - cost curve
Market creating tools with proper guidance enables organisations to build competencies and to execute new value - cost frontiers. They answer key questions of how to challenge assumptions of the industry.
How do you identify non customers and new demand?
How can you create offerings that stand apart and make competition irrelevant?
How can you increase value while also reducing cost?
Strategy developed by an external consultant or just the CEO, never has organisation wide acceptance.
How can you capture people’s hearts and minds and align them to the new strategy?
This not done by demanding change but by engaging, first hand discovery and fair process in the journey.
We help the organization develop strategy through a facilitation process.
We approach developing an innovation strategy as a 4 to 6-week exercise. The steps we adopt include the following
Prepare the organization: Workshops to develop a common understanding of the innovation strategy process.
Innovation assessment: An assessment of innovation ambition and capabilities.
Generate innovation opportunity set: Generate market opportunity sets and jobs to be done. This will outline the innovation opportunities possible for the organization.
Develop a growth matrix. Categorize possibilities and identify innovation-led growth strategies
Develop innovation goals: Understand the 3 horizon model. Develop innovation goals across the 3 horizons and define key strategic initiatives
Organize for innovation: Develop an innovation management system; governance, process, structure, and tools.