New Product Innovation Strategy Framework

Reactive Innovation Process = Addressing initiating pressures as they occur, particularly in regards to new competitive offerings Proactive Innovation Process = Preempting competition by being first on the market with a product competitors would find difficult to match or improve Fast Follower = An imitative strategy where the firm will quickly develop an imitation to counter the attack on its market Second But Better = The firm does not just copy the competitive product, but identifies ways to improve the product and its positioning

Defensive Strategy = Protects the profitability of existing products by encountering competitive new products Customer Ideation = Purposively reacting to customer’s request and ideas Mechanistic Entrepreneurial = An alternative new product strategy for organizations to be proactive and initiate change Innovative Strategy = A proactive innovation strategy focusing on research and development efforts to develop technically superior products

Imitative = Copying competitive products quickly to counter the attack on the market Innovative = Focuses on developing technically superior products through research and development efforts Defensive = Protecting existing product profitability by encountering competitive new products Proactive = Initiating change and being first on the market with hard-to-match or improve products

<p>Innovation Strategy = Synergistic innovations aligned with corporate goals Innovation Arena = Focus on core competencies identified in corporate strategy Competition = Critical factor in selecting strategic posture Risk versus Reward = Willingness to accept occasional failures as part of business</p> Signup and view all the answers

<p>Market/Customers/Product Categories = Affect choice of development strategy Technology = Cutting edge of new technological advances in industry Channels = Middlemen serving distribution, inventory, selling functions Resources = Monetary funding, man-hours, facilities, etc.</p> Signup and view all the answers

<p>Corporate Strategy = Dictates detailed new product development process Innovation Strategy = Aligned with opportunities in marketplace for corporate goals Competition = Can be critical in selecting strategic posture Channels = Serve various functions related to product distribution</p> Signup and view all the answers

<p>Corporate Strategy = Drives the innovation strategy Innovation Arena = Focuses on core competencies identified by organization Market/Customers/Product Categories = Can affect choice of development strategy Resources = Include monetary funding and other firm commitments</p> Signup and view all the answers

<p>Innovation Strategy = Should align with corporate strategy for success Technology = Bringing new technological advances to industry products Channels = Play important role in product distribution and servicing Risk versus Reward = Accepting failures as part of business for potential rewards</p> Signup and view all the answers

<p>Innovation Arena = Focuses on organization's core competencies Competition = 's competitive environment can drive strategic posture Channels = 's role in physical distribution and servicing can be strategic Risk versus Reward = 's impact on willingness to take risks for rewards</p> Signup and view all the answers

<p>Offensive Strategy = Proactive strategy introducing innovations for a different set of consumers Creative Destruction = Process that revolutionizes economic structure by destroying the old and creating a new one Disruptive Technology = Improving a product or service by leapfrogging current technology for a different consumer base Market/Customer Innovation = Strategy where customer needs are identified to develop products satisfying those needs</p> Signup and view all the answers

<p>Firm Strategy = Utilizing multiple strategies based on product line or project orientation Reactive Strategy = Necessary within one product category Proactive Strategy = Needed in another product category New Product Portfolio Management = Similar to portfolio management in financial investment</p> Signup and view all the answers

<p>Value Maximization = One of the goals of portfolio management Portfolio Balance = Another goal of portfolio management Strategic Alignment = Third goal of portfolio management Innovation Strategy Alignment = Ensuring innovation strategies match portfolio management goals</p> Signup and view all the answers

<p>Payback period = Calculating the time required to recoup the initial investment Break-even analysis = Determining the point at which total revenue equals total costs Return on investment = Measuring the profitability of an investment relative to its cost Discounted cash flows = Valuing investments by discounting future cash flows</p> Signup and view all the answers

<p>Decision tree analysis = Modeling decisions with possible outcomes, probabilities, and payoffs Internal rate of return = Calculating the discount rate that makes the net present value of a project zero Strategic bucketing = Evaluating a portfolio by categorizing projects into buckets and allocating resources accordingly Portfolio review process = Managing a mix of projects to maximize a firm's profits</p> Signup and view all the answers

<p>Sure winners vs. more risky = Balancing safe bets with higher-risk ventures in a project portfolio Immediate money makers vs. long term revenue generators = Including projects for short-term gains alongside those for sustained profitability Incremental vs. radical innovations = Combining small-scale improvements with groundbreaking changes in projects Recently launched vs. in decline = Managing a mix of new initiatives and projects facing declining performance</p> Signup and view all the answers

<p>Open innovation = Leveraging external ideas and pathways to advance internal innovation processes Global innovation grid = Utilizing a network of international channels for distributing innovative products Engineering/Research = Applying technical expertise to develop and distribute new products Design firms = Partnering with creative agencies to enhance product distribution</p> Signup and view all the answers

<p>Out of house = Ideas coming from external sources outside the company Customers = Generating ideas based on feedback and needs from clients Competitors = Deriving inspiration from actions and strategies of rival companies Trade partners = Collaborating with partners to develop innovative ideas</p> Signup and view all the answers