Combining Strategy With Innovation Can Create a Competitive Advantage

Strategy and innovation are shown to be two primary contributors to sustained financial excellence and competitive advantage. Unfortunately, very few organizations are able to bring these two disciplines together.

Manufacturers exploring service complementors (Apple and their retail stores) or service providers exploring product complementors (Amazon.com and the Kindle) can reignite a company’s growth. In the automobile industry, increased pricing transparency and hungry competitors have whittled away at profits. A number of auto manufacturers have worked to build on their platforms with services such as financing, insurance, warranties, maintenance, repair, Wi-Fi, navigation, and satellite radio. Their ability to enhance the service experience of an automobile may hold the key to growing profits in the long run.

“Innovation is the continual hunt for new value; strategy is ensuring we configure our resources in the best way possible to deliver it.”

HOW TO MERGE STRATEGY AND INNOVATION
The following five questions will help you begin to consider how you might merge your strategy and innovation efforts:

1.  How can we develop offerings that are simpler, more convenient, and less expensive than established offerings to attract new or less demanding customers?

2.  How can we modify one or more dimensions of our current offering to create a new subcategory that expands the market by bringing in new customers?

3. What one dimension of our offering can we improve to increase share of wallet with existing customers?

4. How can we make the current offering more competitive by leveraging other elements of the marketing mix (promotion, place, price)?

5. How can we use our capabilities to develop new markets for our existing offerings and what untapped uses can they fill?

The intent of both business strategy and innovation is to create value for customers. Too often, in the day-to-day business, we lose sight of the fact that competitive advantage is nothing more than “creating superior value for customers.” Innovation is the continual hunt for new value; strategy is ensuring we configure our resources in the best way possible to deliver it.


MORE LIKE THIS

  • Get the CEO Briefing

    Sign up today to get weekly access to the latest issues affecting CEOs in every industry
  • upcoming events

    Roundtable

    Strategic Planning Workshop

    1:00 - 5:00 pm

    Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process

    Executives expressed frustration with their current strategic planning process. Issues include:

    1. Lack of systematic approach (70%)
    2. Laundry lists without prioritization (68%)
    3. Decisions based on personalities rather than facts and information (65%)

     

    Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns.  They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning.  Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process.  This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented.  If you are ready for a Strategic Planning tune-up, select this workshop in your registration form.  The additional fee of $695 will be added to your total.

    To sign up, select this option in your registration form. Additional fee of $695 will be added to your total.

    New York, NY: ​​​Chief Executive's Corporate Citizenship Awards 2017

    Women in Leadership Seminar and Peer Discussion

    2:00 - 5:00 pm

    Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations. 

    Limited space available.

    To sign up, select this option in your registration form. Additional fee of $495 will be added to your total.

    Golf Outing

    10:30 - 5:00 pm
    General’s Retreat at Hermitage Golf Course
    Sponsored by UBS

    General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.

    The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.

    To sign up, select this option in your registration form. Additional fee of $295 will be added to your total.