Organazational and Strategic innovation
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Strategic Innovation is the creation of growth strategies, new product categories, services or business models that change the game and generate significant new value for consumers, customers and the corporation
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Organazational and Strategic innovation
- 1. Organizational Organizational andand Strategic Innovation Strategic Innovation Afrouz Hojati Fatemeh Aghajani University of Tehran Spring 2014
- 2. Outline 0 Innovation Definition and types? 0 Organizational Innovation 0 Strategic Innovation 0 How to Implement Strategic Innovation? 0 Sources 2
- 4. 4 Management Innovation Strategic Innovation Business Model InnovationValue Innovation Product Innovation Service Innovation Market Innovation Process Innovation Technological Innovation Disruptive Innovation Application Innovation Experiential Innovation Marketing Innovation Structural Innovation Brand Innovation User Lead Innovation Supply Chain Innovation Evolutionary Innovation Revolutionary Innovation Innovation Comes in Many Flavors;
- 5. 0 Many companies fail to extract the most from their investments in innovation, this can be attributed to many pitfalls, to name a few: 0 Not having a complete understanding of innovation, all the different options to achieve a sustaining innovative organization 0 Insufficient insight into what customers really want 0 Failure to make innovation connected and explicit in vision, objectives and part of the strategy and fabric of the organization 0 Lack of balance between the ‘dynamic’ parts required to be successful 5 Why does structuring innovation really matter?
- 6. 0 Weak links between business strategy and product portfolio 0 Insufficient engagement of the whole organization to pursuit innovation 0 A lack of resources or not placed in the appropriate part that brings value in your high priority areas. 0 A weak innovation process that places its focus on one part, not appreciating the whole process needs equal emphasis 0 A missing set of enabling structures within the organization 0 Knowing that different types of innovation require ‘distinctive’ recognition 6 Why does structuring innovation really matter?
- 7. Internal Innovation vs External Innovation 7 What’s the direction of your innovation efforts?
- 8. Continuous / Evolutionary Innovation vs Discontinuous / Revolutionary Innovation 8 Just How Innovative Do You Want to Be?
- 9. 9 Internal External DiscontinuousContinuous Management Innovation Management Innovation Operational Innovation Operational Innovation Product & Service Innovation Product & Service Innovation Strategic Innovation Strategic Innovation The Innovation Map: 4 prototypal innovation types
- 10. 0 New business models (including a new value chain architecture), or 0 New markets (either by creating new ones or reshaping existing ones), or 0 Increased value for both the customer and the company or a combination of these three, and as such it‘s nature is radical. It‘s a departure from a company‘s traditional definition of “how we do business around here”. 10 What Is Strategic Innovation?
- 11. 11 What Is Strategic Innovation?
- 12. 12 What Is Strategic Innovation?
- 13. 13 Internal External DiscontinuousContinuous Management Innovation Management Innovation Operational Innovation Operational Innovation Product & Service Innovation Product & Service Innovation Strategic Innovation Strategic Innovation Processes Technological innovation Disruptive Innovation Blue Ocean Strategy Customer interfaces and experiences New offerings Partner interfaces Internal structures and processes People Management Channels Brand Networking Supply Chain Technological innovation New markets Innovation Map
- 14. 0 “No problem can be solved from the same level of consciousness that created it.” -Albert Einstein 14
- 15. 0 Traditional Approach 0 Serendipitous Approach 0 Strategic Innovation 15 3 Different Approaches
- 16. 16 Traditional Approach Vs. Strategic Innovation Traditional Approaches Strategic Innovation Approaches 0 Adopt a “present to future” orientation-takes today as the starting point 0 “Starts with the end in mind”-identifies long-term opportunities and then “bridges back to the present” 0 Assume a rule-maker/taker(defensive/follower) posture 0 Assume a rule-breaker (revolutionary) posture 0 Accept established business boundaries/product categories 0 Seeks to create new competitive space/playing fields 0 Focus on incremental innovation 0 Seeks breakthrough, disruptive innovation-while continuing to build the core 0 Follow traditional, linear business planning models 0 Marries process discipline with creative inspiration 0 Seek input from obvious, traditional sources 0 Seeks inspiration from unconventional sources 0 Seek articulated consumer needs 0 Seeks unarticulated consumer needs 0 Are technology-driven(seek consumer satisfaction) 0 Is consumer inspired (seek consumer delight) 0 May have a “one-size-fits-all” organizational model 0 May experiment with entrepreneurial “new venture” or other organizational structures
- 17. Serendipity (n.) Finding something good without looking for it. 17 Serendipity; Fortunate Mistake
- 18. 0 It’s part luck, part skill 0 Incorporates a process to create and takes advantage of serendipitous moments 0 Sounds like planning for accidents, right? 0 While this concept may seem counter intuitive, but it actually makes a lot of sense 0 Integrate the best strategy and chance into your plans 0 Cannot plan for all of the unexpected opportunities that may come your way, but what you can do is analyze the unplanned opportunities 18 Serendipitous Strategy
- 19. 19 Breakthrough Incremental Serendipitous Intentional Incremental Innovation -Incremental innovation -Low/Med Revenue Potential -Initiated by Organization
- 20. 20 Serendipitous Innovation Vs. Strategic Innovation
- 21. 0 Focus on a common theme of making large expansive changes in products and operation vs 0 The traditional TQM approach of incremental monitoring, assessing, and modifying. 21 Strategic Innovation Models
- 22. As seen in this figure many innovation strategies refer to these explosive growth and breakthroughs created by Strategic Innovation as discontinuous change or disruptive change and innovation. 22 Level of Change
- 23. 23 to produce outcomes that drive organizational growth 1: Managed Innovation Process Dimension 2: Strategic Alignment Dimension 3: Industry Foresight Dimension 4: Consumer/Customer Insight Dimension 5: Core Technologies and Competencies Dimension 6: Organizational Readiness Dimension 7: Disciplined Implementation (Keathley, Merrill, Owens, Meggarrey, & Posey, 2014) 7 Dimensions
- 24. Managed innovation processes are at the core of any strategic approach. An organization’s goal is to find the equilibrium between external perspectives and an organization's internal capabilities. It must look beyond the obvious in order to create a culture that explores new possibilities. 24 1 – Managed Innovation Processes
- 25. Strategic alignment involves internal support and commitment among key stakeholders. This commitment is necessary for strategic innovation. It engages the organization around a unifying vision and goals which align its strategies and business models. 25 2 – Strategic Alignment
- 26. Industry Foresight is a top-down perspective used to understand the complex forces that drive change, it includes emerging and converging trends, the latest technology, competitive dynamics, and alternative scenarios. 26 3- Industry Foresight
- 27. Core Technologies and Competencies are a set of internal capabilities, competencies needed deliver value to the organization’s customers. Understanding these capabilities and competencies, as well as the organization’s gaps in technologies, intellectual property, brand equity and strategic relationships are critical for creating strategic innovation. 27 4- Core Technologies and Competencies
- 28. 28 Quote on Core Competencies
- 29. Consumer/Customer Insight is mirroring, bottom- up perspective, a deep understanding of both articulated (explicitly stated) and latent, or unrecognized, needs of current and potential customers and business segments. 29 5- Consumer/Customer Insight
- 30. Organizational Readiness is the determination and ability for an organization to implement new ideas and strategies, as well as, to successfully manage and sustain those ideas and strategies once initiated. It is typically made up of three areas of readiness; cultural, process, and structural. 30 6- Organizational Readiness
- 31. Disciplined Implementation is the organization’s capability to effectively sustain the life cycle of innovation. The sustainment of which is dependent on the organization's repeat each step of the innovation life cycle over and over again. 31 7- Disciplined Implementation
- 32. 32
- 33. 0 Five Phases of Innovation 0 Generate 0 Conceptualize 0 Optimize 0 Implement 0 Capture 0 Repeat as needed 33 5 Phase Strategic Innovation Life Cycle Model
- 34. A specific type of strategic innovation 0 Leads to a new way of doing the business 0 Conflicts with the traditional way of doing business Examples: 0 Internet 0 Low-cost airlines 0 Direct insurance 0 Online brokerage trading 0 Distribution of news 0 Home delivery of grocery stores 34 Disruptive Strategic Innovation
- 35. 0 Emphasis on different product or service attributes 0 Traditional brokers sell services on the basis of research and advice 0 Online brokers sell on price and speed of execution 0 Innovators become attractive to new segments 35 Characteristics of Disruptive Strategic Innovation
- 36. 0 Start out as small and low-margin businesses 0 Rarely gain support or long-term commitment from established competitors 0 The innovations are small and not attractive until they grow 0 Grow to capture a large share of the established market 0 Improvements are made over time 0 They are able to deliver comparable performance 0 Established competitors model the new attributes 36 Characteristics of Disruptive Strategic Innovation
- 37. 0 General Electrics 0 Dell 0 Canon 0 Kodak 0 IBM 0 Spacex 37 Applied Example
- 38. 38 GE’s Six Part Growth Model
- 39. 0 Developed new engines and a new launch vehicle 0 Resulting in NASA and commercial customers signing on to 40+ manifests 0 Focused on Disruptive Strategic Innovation 0 Developing the Grasshopper vertical takeoff and landing (VTVL) vehicle 39 Space-X
- 40. 0 Dell Inc. redesigned the company’s direct-sales model 0 IBM changed its practice of independently selling hardware and software to selling complete solutions 0 Canon Inc. developed photocopiers for small offices instead of large corporations 0 Eastman Kodak pioneered IT operations outsourcing 40 Technological Industry Examples
- 41. 41 Risk in Strategic innovation
- 42. 0 Delve into product innovation until ready to kick-off 0 Use time effectively 0 Portfolio Mapping 0 Innovation Roadmaps 0 Innovation Funnel 0 Stage Gate Innovation 0 Open innovation has emerged as viable mitigation strategy (More Recently) 42 Risk Management Applied to Product Innovation
- 43. 0 Innovate while providing service Invest in new service infrastructure Customers finance the development cost Risks 0 Higher service costs/reduced profit margins 0 Contract penalties 0 Uncertainty of outcomes/customer satisfaction 0 Soiled reputation 43 Risk Management Applied to Service Innovation
- 44. 0 Phased/Pilot implementation may yield desired outcome Avoid singular mindset Open to suggestions Critical elements: 0 Entrepreneurial culture 0 Incentives 0 Knowledge management 0 Risk Management in Service Innovation 0 Prepare for Service Innovation 0 Examine alignment of business model, infrastructure, operations 0 Identify gaps 0 Take actions (hire experts, separate business models) 44 Risk in Strategic innovation
- 45. 0 Master the learning challenge 0 Collaborate with frontline stakeholders 0 Knowledge dissipation/training 0 Knowledge capture/feedback 0 Customer collaboration 0 Setup the stage/expectations 0 Positive customer engagement 0 Knowledge capture 0 Learn from the knowledge 0 Look at past and current initiatives and Key Performance Indicators (KPIs) 0 Adjust as needed 45 Risk in Strategic innovation
- 46. 0 Facts: 0 Service Innovation happens in “real-world” 0 Initial service delivery does not yield returns right away 0 Benefits come from “hits-and-misses” analysis and corrective measures Service B overlap Service A Time Time 0 Better results can be achieved by: 0 Cross-functional decision making 0 Organizational alignment 0 Knowledge management 0 Incentives and rewards 46 Risk in Strategic innovation
- 47. 1. Conduct Innovation Audits 2. Build Innovation Strategies 3. Create Continuous Innovation 4. Optimize Marketing Strategies 5. Improve Customer Relationships 6. Find Revenue Innovations 7. Uncover Cost Innovations 47 What We Do?
- 48. 48 What We Do? 0 Conduct Innovation Audits 0 Build Innovation Strategies 0 Create Continuous Innovation 0 Optimize Marketing Strategies 0 Improve Customer Relationships 0 Find Revenue Innovations 0 Uncover Cost Innovation
- 49. 49 • How innovative is your company already? • Do people feel like they can innovate in your organization? • Are building blocks for innovation in place? • Is the organization aligned to support innovation? - Culture - Rewards - Human Resource policies - Top-down support • Is funding for idea development set aside? What We Do? 0 Conduct Innovation Audits 0 Build Innovation Strategies 0 Create Continuous Innovation 0 Optimize Marketing Strategies 0 Improve Customer Relationships 0 Find Revenue Innovations 0 Uncover Cost Innovations
- 50. 50 • Align with Corporate Strategy or not? • Define Innovation Goals • Define Innovation Policies • Innovation Management System Selection • Build Processes for Idea Selection • Establish an Innovation Funding Plan • Identify Relevant Innovation Metrics • Create an Innovation Training Plan 0 Conduct Innovation Audits 0 Build Innovation Strategies 0 Create Continuous Innovation 0 Optimize Marketing Strategies 0 Improve Customer Relationships 0 Find Revenue Innovations 0 Uncover Cost Innovations What We Do?
- 51. 51 • Identify Organization Cultural Changes to be Made • Build Visual Models to Drive Quality Contributions • Train All Employees to be Business Innovators • Modify HR Policies as Needed • Define Innovation Communications Plan • Refine Processes for Idea Generation as Needed • Innovation Management System Implementation • Refine Innovation Funding Plan as Needed • Refine Innovation Metrics as Needed 0 Conduct Innovation Audits 0 Build Innovation Strategies 0 Create Continuous Innovation 0 Optimize Marketing Strategies 0 Improve Customer Relationships 0 Find Revenue Innovations 0 Uncover Cost Innovations What We Do?
- 52. 52 •Are you building your marketing and product development around the right customer insights? •Are you marketing to your customers where they are, or are you shouting into the darkness? •Are you reaching the right customers? •Are you building a relationship of increasing mutual value with your customers? •We’ll improve your marketing outcomes or build you a marketing strategy from scratch 0 Conduct Innovation Audits 0 Build Innovation Strategies 0 Create Continuous Innovation 0 Optimize Marketing Strategies 0 Improve Customer Relationships 0 Find Revenue Innovations 0 Uncover Cost Innovations What We Do?
- 53. 53 • Together we will create meaningful and productive conversations your customers • Enabling a seamless transition of the conversation from pre-sale to post-sale • Creating loyalty not just a loyalty program • Delivering value to customers, not e-mails • We can help you implement a true conversational marketing strategy • We will find the right role for social media in your conversational marketing strategy 0 Conduct Innovation Audits 0 Build Innovation Strategies 0 Create Continuous Innovation 0 Optimize Marketing Strategies 0 Improve Customer Relationships 0 Find Revenue Innovations 0 Uncover Cost Innovations What We Do?
- 54. 54 • Understand your customers better • Identify new markets or customers for existing products or services • Deliver new products or services that will expand your customer base or increase your customer penetration • Deliver new products or services that will increase lifetime value of your customers through higher customer loyalty • Extract the right customer insights, those that will result in competitive separation 0 Conduct Innovation Audits 0 Build Innovation Strategies 0 Create Continuous Innovation 0 Optimize Marketing Strategies 0 Improve Customer Relationships 0 Find Revenue Innovations 0 Uncover Cost Innovations What We Do?
- 55. 55 • Optimize your business processes with us • We will help you identify what customers really want • We will help you identify what the business really needs • As a result their may be things you currently do that you can stop doing • Identify opportunities for savings from outsourcing • Identify opportunities for insourcing (does it make sense to perform a process for others in the industry to leverage our investments) 0 Conduct Innovation Audits 0 Build Innovation Strategies 0 Create Continuous Innovation 0 Optimize Marketing Strategies 0 Improve Customer Relationships 0 Find Revenue Innovations 0 Uncover Cost Innovations What We Do?
- 56. 0 Palmer, D., & Kaplan, S. (n.d.). Resources: Strategic Innovation Resources – Articles, White Papers & Books. Retrieved November 14, 2013, from InnovationPoint: http://www.innovationpoint.com/resources.htm 0 Abraham, J., & Knight, D. (2001). Strategy & Leadership: leveraging creative action for more profitable growth. Strategy & Leadership, 29(1), 21-26. Retrieved from Emerald: https://www.emeraldlibrary.com 0 Govindarajan, V. (2004, January 15). Strategic Innovation and the Science of Learning. Retrieved November 21, 2013, from MIT Sloan Management Review: http://sloanreview.mit.edu/article/strategic-innovation-and-the-science- 56 Refrences
- 57. 0 Markides, C. (1997, April 15). Strategic Innovation. Retrieved November 18, 2013, from MIT Sloan Management Review: http://sloanreview.mit.edu/article/strategic-innovation/ 0 Porter, M. E. (1996, November 1). What is Strategy? Harvard Business Review(74), pp. 61-78. Retrieved November 18, 2013 57
- 58. 58
- 59. 59
Notas del editor
- Creativity is thinking up new things innovation is doing new things
- در مورد آپریشنال اینوویشن اینا رو بگیم Process innovation: making processes for established offers in established markets more effective or efficient technological innovation in manufacturing Of course concepts like the moving assembly line, TQM, SCM, Six Sigma or Lean Manufacturing were radical innovations at the time they were being invented. If your company implements such concepts today, they might represent a radical innovation for your organization, but the concept as such is not revolutionary. It would rather be the application of best practices. در مورد پروداکت اند سرویسز اینوویشن اینا رو بگیم taking established offers in established markets to the next level making surface modifications that improve customers' experience of established products Product & Service innovations can of course also be radical and disruptive...but than it‘s rather strategic innovation, the difference being that radical product innovations provide an completely new level of value to both the customer and the company producing them. در مورد منجمنت اینوویشن اینا رو بگیم Management Innovation changes the way managers do what they do, and does so in a way that enhances organizational performance. „Management innovation is anything that substantially alters the way in which the work of management is carried out, or significantly modifies customary organizational forms, and, by doing so, advances organizational goals.“ Gary Hamel The target of innovation efforts are the business processes and not the manufacturing processes. It‘s about „fundamental breakthroughs in how companies organize, coordinate, plan, motivate and allocate resources...“ Gary Hamel
- Concept of Strategic Innovation What is strategic innovation and why is embracing it so critical to organizational success in today’s global market? According to authors, Derrick Palmer and Soren Kaplan, strategic innovation is the, “…creation of growth strategies, new product categories, services or business models that change the game and generate significant new value for consumers, customers and
- کلن نیو بیزنس مدل از تایپ های استرتژیک اینوویشنه.
- Albert Einstein is quoted as saying, “No problem can be solved from the same level of consciousness that created it.” This statement is no truer than in relation to the way many organizations approach strategic innovation. Porter’s Five forces model, SWOT, PEST (Political, Economic, Social and Technological analysis), PESTLE (Political, Economic, Social, Technological, Legal and Environmental) analysis models have been traditionally been used successfully by business to stayahead of the curve.But in today’s globally connected economy, the way corporate cultures view the nature of innovation has had to change.Traditionally, innovation was associated with products, many times viewed as the result of leveraged technology and customer needs. However, researchers and practitioners have broadened the traditional approach to include types of innovation, management of innovation and business models designed to enhance innovation (Visnjic, Turunen, & Neely, 2012). The reason these cultures fail strategically is often because they do not differentiate between the organization’s purpose (what the organization exists to do) and the organization’s constraints (what the organization must do to survive). Corporate objectives become intertwined with strategy and implementation. This makes it difficult to know where to begin. Compounding the problem in these situations is the presumption that planning processes lead to new and improved strategies. The fact is, the insight needed to create value seldom comes from planning meetings. Instead, it is usually derived from many different sources. All of this ultimately leads to directionless strategies, confusing processes and “flat-footed” plans. This
- What is strategic innovation and why is embracing it so critical to organizational success in today’s global market? According to authors, Derrick Palmer and Soren Kaplan, strategic innovation is the, “…creation of growth strategies, new product categories, services or business models that change the game and generate significant new value for consumers, customers and the corporation”(Palmer & Kaplan, n.d.).Traditional strategic approaches focus on best practices, operational effectiveness and incremental improvements in cost and equity. Leadership tends to focus on imitating competitor’s actions and hyper-focus on strategic positioning. The organizational culture often mistakes operational effectiveness with strategy. (Sniukas, 2009) Further, organizations tend to approach strategy using today as the starting point, accept established industry and product positioning and categories. Leadership may also try to use a “one-size-fits-all” organizational model. Unlike companies that embrace traditional strategy, companies that commit to strategic innovation do not rely on serendipitous creative acts, ad hoc, unstructured approaches to foster innovation. Instead they look for holistic, systematic approaches; ones that generate breakthrough or discontinuous innovations. The culture “starts with the end in mind” by identifying long-term opportunities, assume a rulebreaker mentality and seeks breakthrough, disruptive innovation. Leadership looks to create new competitive space and may experiment with entrepreneurial or different structures to accomplish innovation and growth. A culture that internalizes strategic innovation tends to seek inspiration from unconventional sources. (Palmer & Kaplan, n.d.) In this new, and ever-changing, global market, organizations that fail to heed Einstein’s warning, will continue to institutionalize traditional strategy and fail to differentiate between purpose and constraint. They will invest in directionless strategies and focus on short-sighted, strategic initiatives that will make them less effective (Campbell & Alexander, 1997) than their competition. Those companies that do heed, and utilize the seven dimensions, will realize new sources of innovation. As they embrace and internalize strategic innovation frameworks they
- Traditional strategy development results from the continuous application and interaction of three fundamental thinking skills: identification of elements and scope, analysis, and synthesis. The basic elements of a strategy for an enterprise are: the market (comprised of customers, competitors and technology embedded in a milieu of social, political, economic, demographic and scientific driving forces for change), stakeholders, enterprise capability and enterprise capacity. The enterprise capability and capacity are defined by it projects, resources and culture. Traditional strategy takes into account today as a starting point. It has present to future orientation. Second, using traditional strategy requires a rule-maker posture. This inhibits outof-the-box thinking. The traditional strategy accepts established boundaries and product categories. This strategy does incorporate some level of innovation incrementally. The traditional strategy primarily follows linear business planning models. It is aimed directly at gaining strength through input from traditional sources and articulated consumer needs. Traditional strategy is driven by technology and may have a one-size-fits-all organizational model approach. (Palmer & Kaplan, n.d.) traditional strategic approaches focus on best practices, operational effectiveness and incremental improvements in cost and equity. Leadership tends to focus on imitating competitor’s actions and hyper-focus on strategic positioning. The organizational culture often mistakes operational effectiveness with strategy. (Sniukas, 2009) Further, organizations tend to approach strategy using today as the starting point, accept established industry and product positioning and categories. Leadership may also try to use a “one-size-fits-all” organizational model. Unlike companies that embrace traditional strategy, companies that commit to strategic innovation do not rely on serendipitous creative acts, ad hoc, unstructured approaches to foster innovation. Instead they look for holistic, systematic approaches; ones that generate breakthrough or discontinuous innovations. The culture “starts with the end in mind” by identifying long-term opportunities, assume a rulebreaker mentality and seeks breakthrough, disruptive innovation. Leadership looks to create new competitive space and may experiment with entrepreneurial or different structures to accomplish innovation and growth. A culture that internalizes strategic innovation tends to seek inspiration from unconventional sources. (Palmer & Kaplan, n.d.) In this new, and ever-changing, global market, organizations that fail to heed Einstein’s warning, will continue to institutionalize traditional strategy and fail to differentiate between purpose and constraint. They will invest in directionless strategies and focus on short-sighted, strategic initiatives that will make them less effective (Campbell & Alexander, 1997) than their competition. Those companies that do heed, and utilize the seven dimensions, will realize new sources of innovation. As they embrace and internalize strategic innovation frameworks they
- Serendipity is having an aptitude for making desirable discoveries by accident.Many organizations rely on serendipitous acts of creativity to foster innovation. Others take an unplanned, often unstructured approach, which results in only incremental improvements with poor implementation that can lack sponsorship. A classic example of serendipitous strategy is the story of 3M Post-it notes. In 1974, Stephen Silver at 3M research laboratories was trying to develop a strong adhesive and instead created a new adhesive that was not too strong, could stick on all surfaces and be removed easily without causing damage or leaving residue. Not knowing what to make of this, it was four years later that his colleague Art Fry came up with the idea to use this low tack adhesive to attach a bookmark to his hymnal. He further developed the concept and 3M launched what became known as Post-it notes nationwide (Bands, 2012). A recent critique of business strategy argues that the role of serendipity has been largely excluded from formal strategy theory. Further, it showed that there is an element of serendipity in the fabric of all organizations and that the neo-classical model of corporate strategy cannot accommodate this reality. In today’s increasingly complex, dynamic and interconnected business world, business strategy cannot be perfectly planned in advance as traditional theories of strategy would suggest, but has to evolve in response to continually changing circumstances. This alternative and contemporary approach to business strategy argues that the challenge for executives is to build an organization which is capable of executing strategy in a fast changing environment by balancing both high alignment and high autonomy (Loosemore, September). It is important to note the difference between serendipitous strategy and synchronized strategy. The distinction between serendipity and synchronicity is a matter of time. With synchronicity there is an immediate recognition of the meaningful coincidence of two events happening close in time. Serendipity, however, cannot be assessed until later when the consequences of events are evaluated (Lawley & Tompkins, 2008). Synchronicity can become serendipity if the effects of the coincidental events have large positive significance over time. However serendipity can also arise out of events that are not synchronous. Serendipitous learning will always be there and provide great anecdotal evidence for informal learning, but serendipity is not a strategy for building a high impact, learning performing organization. Strategic innovation is a holistic, systematic approach focused on generating beyond, incremental, or discontinuous innovations. Strategic innovation focuses on obtaining meaningful breakthroughs. Innovation becomes strategic when it is an intentional, repeatable process that creates a significant difference in the value delivered to consumers, customers, partners and the corporation. A strategic innovation initiative generates a portfolio of breakthrough business growth opportunities using a disciplined yet creative process (Palmer & Kaplan, n.d.).
- Strategic Innovation does include concepts like Value Innovation, Blue Ocean Strategy and Disruptive Innovation and Business Model Innovation.