Templates for Innovation Strategy Development

RGB 77/77/77 RGB 178/178/178 RGB 150/150/150 12,0 1,0 1,0 12,0 5,0 7,9 9,0 RGB 95/95/95 RGB 221/221/221 3,8 2,7 Colours Color Scheme & Graphic Area Using a template for the feedback and action plan presentation Source: Any data presented in text or graph format should have a source identified<br>

Divider Page 24-Point BoldTitle Case Highlighted Subsections
Place Divider Subsections as Bullets Using a template for the feedback and action plan presentation<br>

Agenda Client’s current strategic focus on innovation management
Steps to develop an innovation strategy
Action plan and next steps to develop and implement an innovation strategy successfully Example<br>

The introduction to Innovation Strategy Development takes place in a hands-on 10step approach. Training outline Source: IMP³rove Academy, 2020; www.improve-innovation,eu; IMP³rove is a registered trademark Ambition to serve new marketsvs. ambition to develop new products What do the customersreally need? Which current offerings are at the end of their lifecycle or still offering value to customers? Trends Customerneeds Competitor and technology watch Ambition Innovation
lifecycles Competencyassessment Internal analysis Which compe-tencies does the client have? Who are the competitors and what are they doing? Which trends affect the client? Welcome and introduction External analysis<br>

Steps to develop an innovation strategy Using a template<br>

Exercise: Define the most relevant trends for your client and identify the innovation potentialand risks. Source: IMP³rove Academy 2020; www.improve-innovation.eu IMP³rove is a registered trademark Breakout session: Trend analysis<br>

You need to understand the innovation areas and control points in your client’s value chain. Step 2: Customer needs analysis 2. Value chain description Value chain influencers I I I Company … … Company … … … … End cust-omer I Innovation areas – Important downstream customer value drivers that can be leveraged to client’s benefit through innovation Control points – Actors who control or strongly influence the value chain with regards to possible innovations (i.e. decision makers) C Direct customers Downstream value chain participants End customers Source: Kearney; IMP³rove – European Innovation Management Academy 2020<br>

A competitor watch to profile and evaluate competitors serves to build a radar for shifts in a company‘s USP. 3. Profiling and evaluation Step 3: Competitor and technology watch Any interesting observations shall be put on a watch list
The watch list focuses the attention on the potential impacts
An intern can update the watchlist at low cost Source: Global Business Policy Council, Kearney<br>

4. Innovation matrix (by Ansoff) To define your client’s innovation strategy it is good to know which role they want to play – now and in the future. Source: Harry Igor Ansoff, IMP³rove – European Innovation Management Academy 2020 Step 4: Ambition analysis Existing products, services,business models Products, services, business
models new to the firm Products, services, businessmodels new to the world Existing market Market new to the firm Market new to the world<br>

To give SME insights into their strengths and weaknesses regarding competencies a simple 5x5 matrix is very helpful. 6. Competence analysis Very high - Industry leadership in competence area(significant lead compared to next competitor)
High - Best practice in industry, yet no leadership in setting the pace
Medium - Meets average industry competence level
Low - Significant gap to reaching average competence
Very low - Not reaching minimum industry norms Very high - Competence offers key differentiation in market (e.g. cost efficiency of process, major customer benefit)
High - Competence offers direct and significant impact on competitiveness
Medium - Competence is standard and expected in market
Low - Competence is no "must" to be successful in market
Very low - Competence has no influence on competiveness Source: Kearney; IMP³rove Academy 2020; www.improve-innovation.eu IMP³rove is a registered trademark Step 6: Competency assessment<br>

Lifecycle maturity can be assessed by analyzing key indicators. 5. Criteria for assessment of as-is lifecycle maturity Source: IMP³rove – European Innovation Management Academy 2020 Step 5: Innovation lifecycle analysis<br>

Vision and mission are general principles that define what the company stands for and where it wants to go. 7. Defining the vision and mission Understood and shared by all employees
Broad enough to encompass a variety of perspectives
Easy to communicate
Inspiring and uplifting
Concise and inclusive
May be "action-oriented“ or “outcome-oriented” Success factors Guide management's thinking on strategic issues
Help define performance standards
Guide employee decision making
Help establish a framework for ethical behavior Create closer linkages and better communication with customers, suppliers and alliance partners
Promote external support Purpose On average - the bigger the SME size segment, the more companies do have a documented vision for all employees to see
On average – more than 50% clearly link their vision to innovation (across SME size segments) Findings1 Internal External IMP³rove assessment report
Source: Kearney, IMP³rove – European Innovation Management Academy 2020 Step 7: Vision and mission<br>

Innovation Search Fields are derived from the (macro-) trends your client is facing. Step 8: Search fields 8. From macro trends to search field Example 1. Impact on existing and potential for new products/applications
2. Degree addressed by current product/application portfolio:
Source: Kearney = Fully = Partially = Not at all = High = Medium = Low<br>

Key questions to be answered

Does the SME has the resources to develop the competence
Does the SME has the capability/ openness to integrate the new competence effectively
Are there publicly available programs to support the competence development? The identified search fields might require the development of new competences. Step 9: Competence roadmap 9. Approach to developing new competences Example Source: IMP³rove Academy 2020; www.improve-innovation,eu; IMP³rove is a registered trademark Competence: Production process Competence: Engineering Competence: Technical marketing’

Definition of level of quality of the competence
Internal development vs. external hire or outsourcing
Urgency for developing the required competence
Resources required for the development of the competence (budget for training, salary of additional resources, recruiting etc.)
Integration of new competence/ resources in the organization
Continuous improvement measure for the competence<br>

Overall results



Overall view on benefits of innovation activities
Risk and sensitivity/ nprojections
Practical advice for management on minimizing costs, increasing and accelerating benefits Estimation of cost and
benefits


Assumptions and their individual contribution to scenarios
Financial metrics
Non-financial aspects Description of innovation activities


Scope/boundaries of proposed actions and functions included
Clarity on business objectives
Background situation and context The business case is the pivotal element to convince SME clients to take action. Step 10: Business case 10. Business case success factors Source: IMP³rove – European Innovation Management Academy 2020 2020 2015 2016 2019 2017 2018 Accumulated profit(scaling adjusted) Contribution margin of innovation R&D cost<br>

Action plan and next steps to develop and implement an innovation strategy successfully Using a template<br>

Developing an innovation strategy requires a rigorous management of the various actions Action plan for developing an innovation strategy<br>