An effective innovation strategy depends more on an organization’s innovation processes, tools and culture than how much it spends on R&D.
An ideal innovation strategy customizes client’s innovation portfolio to their needs, reduces time-to-market revenues as well as helps clients define the role of innovation in their pursuit of growth. Also, it keeps a comprehensive focus on both top-line and bottom-line (i.e. value-mix) levers, help improve product competitiveness and drive increased profitability :
- By focusing on the top-line, quantify and translate customer insights and needs into advantaged product concepts and feature sets- together with an understanding of the willingness of customers to pay for them. Advantaged product drives superior competitive positioning and that in-turn drives higher sales.
- While, bottom-line focus helps companies deliver advantaged products and features sets to customer at the lowest possible price. The goal is to reduce basic product or service ‘functional’ costs and then re-invest the savings into product features and consistent quality attributes that create real and perceived value in the minds of the customers.
A sound Innovation strategy increase the health of the industry's product portfolio, in turn improves the overall return on their innovation investments- ROII, by introducing PRODUCT DIFFERENTIATION.
And, differentiation goes way beyond just a mere shift from ‘me too product’ to ‘novel product’ breakthroughs.
True Product Differentiation stems from the presence of carefully nurtured distinctive product capabilities/ attributes that endure and are TOUGH TO COPY.
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