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What is corporate innovation strategy?

This article was originally published on prooV’s website on 10/04/2019. prooV merged with QAssure to become 1TX in July 2022.*

As digital transformation increases competition across industries, businesses acknowledge their need for organized innovation efforts.

Companies need to map out a corporate innovation strategy to get started, but what exactly is a corporate innovation strategy? Furthermore, how can it help your business? What should you avoid when planning one?

Here we dive into the purpose of maintaining an innovation strategy and how to create an effective one.

Reclaim your Agency.

The goal of any business strategy is to create and reinforce guidelines to reach an objective. In this respect, an innovation strategy is no different.

An effective innovation strategy focuses on a company’s efforts to create ground-breaking changes, either internally or externally.

Without a coherent and comprehensive innovation strategy, any large organization runs the risk of misalignment, which costs the company time, resources, and, ultimately, results. A lack of a dedicated strategy can lead to different departments progressing in diverging directions, each with their interpretation of what innovation means for the company.

Some companies view innovation as not unlike throwing darts. Sure, some of the ideas might stick and become bullseyes, but you must throw a lot of darts to get to that point.

While there is a kernel of truth to that idea, innovation should not be left entirely up to luck. Continuous and repeated innovation success is driven more by strategy than good fortune.

Avoid the Pitfalls

Innovation strategies are not one-size-fits-all.

While it is true that the bigger innovation spenders invest in radical and external innovation, each company needs to clarify what its corporate goals are and understand how innovation fits into its roadmap.

Many businesses base their strategy on an open innovation approach. Furthering innovation endeavors by collaborating with external companies like start-ups and independent software vendors saves companies the time, energy, and money it would take to develop and test a technology that already exists elsewhere.

Internal innovation strategies do not give companies the same innovative advantage against their competitors as open innovation does. Even so, some businesses opt for internal innovation as a starting point for innovation or as an addition to their open innovation efforts.

To make the correct choice for your strategy: you must consider the broader corporate vision, business goals, and market demands.

Prolong your Success

Every company that aims for longevity should take innovation and innovation strategy seriously.

While investing in a comprehensive innovation strategy can seem daunting, it keeps efforts aligned to ensure effectiveness and impact.

Innovation strategies help to coordinate the disparate needs of all the different departments within a corporation while clarifying how they should collaborate toward the company’s innovation goals and how they will each benefit from them.

Being an innovative company means embracing a culture of constant learning and experimentation. Only then can your company stay ahead of your competitors.

To find out how 1TX can help with your organization’s innovation strategy, contact us today!