Innovation Strategies are different from “Classical” business strategies due to the need to accommodate uncertainty. This uncertainty occurs due to the difficulty in predicting the steps, time and impact of the innovation. Therefore many common approaches used to develop a Classical business strategy are inappropriate for innovative businesses.
What is an innovation strategy?
An innovative strategy guides decisions on how resources are to be used to meet a firm’s objectives for innovation and thereby deliver value and build competitive advantage.
Strategic matters include analysis of a company’s competitive and technological environment; assessment of its external challenges and opportunities; and where its distinctive advantages lie. It involves prioritizing and developing the right technological innovations by ensuring the appropriate resources, capabilities and processes are used to best effect in delivering value.
The extent to which this can be achieved will vary in relation to the desired outcome of the innovation and the type of innovation.