Innovation that Fits

Moving Beyond the Fads to Choose the Right Innovation Strategy for Your Business
Michael Lord, Donald DeBethizy and Jeffrey Wager

Just about everyone in business today loves the idea of innovatino as a way to grow revenues and profits. As a result of that interest, there have been a succession of innovation fads and ideas. None of these concepts, however, have proven to be one-size-fits-all or definitely superior. Therefore, instead of trying to find the lone “silver bullet” of innovation, successful companies are now using a mix of different innovation tools and tactics to successfully innovate.

The main elements of this emerging portfolio of innovation options are:

Core Firm — Portfolio of innovation options
Concept <– 1. Corporate venture capital investments
Research <–> 2. Intellectual property licensing
Development <–> 3. Innovation by alliances, collaboration
Commercialization <– 4. Innovation by making acquisitions
Commercialization –> 5. Innovation spinouts

The key to making a portfolio of innovation options work is ot link what’s being done closely with the core of the business. Innovation choces need to be made in the context of balance and fit with that core rather than in isolation. Juggling the entire portfolio effectively is essential. At various times, specific innovation tools and tactics will come to the fore, while at other times different tools will be better suited. Managing this portfolio and keeping it fine-tuned is surely the future of sustainable and beneficial innovation.

Innovation that Fits