Making Inovation
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Publicado: 1 de febrero de 2013
Copyright © 2006. Wharton School Pub. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright
law.
Page 59
3
CHOOSING YOUR DESTINY: HOW TO DESIGN A WINNING INNOVATION STRATEGY
Choosing the Right Strategy
"Innovation is a survival issue."
—3M1One of the first rules of innovation is that you must clearly decide how your organization is going to play the innovation game. This is senior management's responsibility.
There is no menu of generic strategies from which to choose. Each company's management team has to craft its own innovation strategy, adapt to changing conditions,
and choose the right time to make key moves.The innovation strategy must support the business strategy. The amount and type of innovation (radical, semi radical, and incremental) will vary depending on the
strategy and the competitive environment. Like anything important, timing is everything.
EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 11/29/2012 6:03 PM via BIBLIOTECA DIGITAL DEL SISTEMA TECNOLOGICO DE
MONTERREY
9780132044882 ; Davila, Tony, Epstein, Marc J., Shelton,Robert D..; Making Innovation Work : How to Manage It, Measure It, and
Profit From It
Account: s8461332
Copyright © 2006. Wharton School Pub. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright
law.
Page 60It is crucial that the people in the organization understand the innovation strategy. Without a clear game plan, and without alignment of the key players in the
organization, you cannot be very successful at innovation.
PlaytoWin or PlayNottoLose Strategies
A study that scrutinized why some firms innovate significantly more than others found that in general, dominant firms are more aggressive innovators than non dominant
firms.2 However, dominance is not a strategy—it is an outcome. You need to define more than dominance to have a viable innovation strategy.
Within the Innovation Matrix, an organization may choose to devote most of its resources to a particular part of the matrix or spread them out, creating a diverse portfolio of innovation investments across the matrix. Depending on the center of gravity and diversity of the investment within the matrix, we can talk about two classes
of innovation strategies: PlayingtoWin (PTW) and PlayingNottoLose (PNTL).
PlaytoWin Strategy
For an organization to launch a PTW strategy, there must be an emphatic "Yes" in response to the question, "Is the innovation investment we are making expected to create one of the key sources of our competitive advantage?" A PTW approach investment's goal is to produce significant competitive advantages that its competitors
will not be able to easily or quickly match.
PTW is a market leading strategy that relies heavily on semi radical innovation to drive transformation in the organization and create market changing ideas and products. In the PTW innovation mode, a company invests in changes in technology and business models with the intent of outpacing its competitors through radical
EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 11/29/2012 6:03 PM via BIBLIOTECA DIGITAL DEL SISTEMA TECNOLOGICO DE
MONTERREY
9780132044882 ; Davila, Tony, Epstein, Marc J., Shelton, Robert D..; Making Innovation Work : How to Manage It, Measure It, and
Profit From It
Account: s8461332
Copyright © 2006. Wharton School Pub. All rights reserved. May not be reproducedin any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright
law.
Page 61
innovation or, alternately, by wearing them down with repeated, frequent salvos of different types of innovation—incremental, semi radical, and radical. Either way, ...
law.
Page 59
3
CHOOSING YOUR DESTINY: HOW TO DESIGN A WINNING INNOVATION STRATEGY
Choosing the Right Strategy
"Innovation is a survival issue."
—3M1One of the first rules of innovation is that you must clearly decide how your organization is going to play the innovation game. This is senior management's responsibility.
There is no menu of generic strategies from which to choose. Each company's management team has to craft its own innovation strategy, adapt to changing conditions,
and choose the right time to make key moves.The innovation strategy must support the business strategy. The amount and type of innovation (radical, semi radical, and incremental) will vary depending on the
strategy and the competitive environment. Like anything important, timing is everything.
EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 11/29/2012 6:03 PM via BIBLIOTECA DIGITAL DEL SISTEMA TECNOLOGICO DE
MONTERREY
9780132044882 ; Davila, Tony, Epstein, Marc J., Shelton,Robert D..; Making Innovation Work : How to Manage It, Measure It, and
Profit From It
Account: s8461332
Copyright © 2006. Wharton School Pub. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright
law.
Page 60It is crucial that the people in the organization understand the innovation strategy. Without a clear game plan, and without alignment of the key players in the
organization, you cannot be very successful at innovation.
PlaytoWin or PlayNottoLose Strategies
A study that scrutinized why some firms innovate significantly more than others found that in general, dominant firms are more aggressive innovators than non dominant
firms.2 However, dominance is not a strategy—it is an outcome. You need to define more than dominance to have a viable innovation strategy.
Within the Innovation Matrix, an organization may choose to devote most of its resources to a particular part of the matrix or spread them out, creating a diverse portfolio of innovation investments across the matrix. Depending on the center of gravity and diversity of the investment within the matrix, we can talk about two classes
of innovation strategies: PlayingtoWin (PTW) and PlayingNottoLose (PNTL).
PlaytoWin Strategy
For an organization to launch a PTW strategy, there must be an emphatic "Yes" in response to the question, "Is the innovation investment we are making expected to create one of the key sources of our competitive advantage?" A PTW approach investment's goal is to produce significant competitive advantages that its competitors
will not be able to easily or quickly match.
PTW is a market leading strategy that relies heavily on semi radical innovation to drive transformation in the organization and create market changing ideas and products. In the PTW innovation mode, a company invests in changes in technology and business models with the intent of outpacing its competitors through radical
EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 11/29/2012 6:03 PM via BIBLIOTECA DIGITAL DEL SISTEMA TECNOLOGICO DE
MONTERREY
9780132044882 ; Davila, Tony, Epstein, Marc J., Shelton, Robert D..; Making Innovation Work : How to Manage It, Measure It, and
Profit From It
Account: s8461332
Copyright © 2006. Wharton School Pub. All rights reserved. May not be reproducedin any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright
law.
Page 61
innovation or, alternately, by wearing them down with repeated, frequent salvos of different types of innovation—incremental, semi radical, and radical. Either way, ...
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