16 Questions
What is the primary focus of strategic innovation?
Reinventing corporate strategy
How does strategic innovation differ from 'me-too' business models?
It is not characterized by incremental product extensions
What is the approach of strategic innovation towards predicting the future?
It spans a journey of inquiry and activity
How does strategic innovation blend non-traditional and traditional approaches to business strategy?
By deploying industry foresight and strategic alignment as a foundation
What differentiated Canon from Xerox in the copier market?
Price and quality
What was the main element of Apple's strategy in the computer business?
Targeting corporations as customers
How did Deli Computer sell its products to the end consumer?
Through retail stores
What was the new distribution outlet created by Hanes Corp for women’s pantyhose?
Supermarkets and drugstores
What is the purpose of the 'Crazy 8s' exercise?
To create eight different variations of the strongest solution in eight minutes
What is the purpose of the 'Heat Map' step in making a decision for the best solution to prototype?
To assign three dot stickers to the most creative solutions
What is the purpose of Lightning Demos in the ideation process?
To encourage research on competitors and existing products
What is the purpose of the 'Art Museum' step in making a decision for the best solution to prototype?
To showcase the sketches on a wall and create an art gallery
What makes an innovation 'strategic'?
When it creates a significant difference in the value delivered to consumers, customers, partners, and the corporation
What led to significant shifts in market share according to the text?
Companies changing the rules of the game through strategic innovation
What differentiated Canon from Xerox, IBM, and Kodak in the copier market?
Canon decided to play the game differently and adopted a unique strategy
What characterized Xerox's strategy in the copier market?
Segmenting the market by copier volume and targeting the high-speed copier market
Study Notes
Strategic Innovation
- The primary focus of strategic innovation is to create unique business models that differentiate a company from its competitors.
- Strategic innovation differs from 'me-too' business models by introducing new and innovative solutions to the market, rather than simply copying existing ones.
Predicting the Future
- Strategic innovation involves predicting the future by anticipating and planning for future changes in the market, customer needs, and technology.
Blending Approaches
- Strategic innovation blends non-traditional and traditional approaches to business strategy by combining analytical tools with creative and innovative thinking.
Company Examples
- Canon differentiated itself from Xerox in the copier market by introducing a smaller, more affordable copier that was more suitable for individual use.
- Apple's strategy in the computer business focused on creating a user-friendly and aesthetically pleasing product that appealed to a wider range of consumers.
- Deli Computer sold its products directly to the end consumer, bypassing traditional distribution channels.
- Hanes Corp created a new distribution outlet for women's pantyhose, selling them through vending machines in shopping malls.
Innovation Tools
- The 'Crazy 8s' exercise is a tool used in strategic innovation to generate a large number of ideas quickly and efficiently.
- The 'Heat Map' step is used to identify the most promising solutions to prototype by evaluating them based on their potential impact and feasibility.
- Lightning Demos are a tool used in the ideation process to quickly and effectively communicate ideas and gather feedback.
- The 'Art Museum' step is used to evaluate and refine solutions by creating a visual representation of the ideas and gathering feedback from stakeholders.
Strategic Innovation Characteristics
- An innovation is considered 'strategic' if it has a significant impact on the company's competitive position and market share.
Market Shifts
- Significant shifts in market share are often the result of strategic innovation, where companies anticipate and respond to changing market conditions and customer needs.
Company Comparisons
- Canon differentiated itself from Xerox, IBM, and Kodak in the copier market by introducing innovative and affordable products that appealed to a wider range of customers.
- Xerox's strategy in the copier market was characterized by a focus on high-quality, high-end products that were often too expensive for individual users.
Test your knowledge about strategic innovation, including its systematic approach, intentional and repeatable process, and the creation of significant value for consumers and corporations.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
