Abstract
1- A new framework for organizational practice
2- The strategy shift framework
3- Obstacles to effective innovation
4- Role of management in shifting strategy
5- Final thoughts
References
Abstract
Innovation is a key source of organizational growth and profitability. Many organizations at the front end of innovation struggle to engender an innovation approach that is effective and lasting. This article presents a framework that defines the interdependency of innovation and strategy, and then outlines the role of top management to continuously renew the positioning of the firm. Based on a synthesis of prior research—including the Dynamic Capabilities View, Innovation Orientation, and Disruptive Innovation Theory—and our own experience working with organizations, we present an operational strategy shift framework, which allows practitioners to increase, refine, and transform their firm’s capability to innovate (CTI) toward achieving their strategic objectives. This framework provides guidance that leaders can use to integrate innovation into their strategic process.
A new framework for organizational practice
The 2017 Front End of Innovation conference in Boston, Massachusetts featured keynote speakers from some of the world’s most innovative companies–—McLaren, The Walt Disney Studios, 3M, Dolby Laboratories, and Procter & Gamble. The themes revolved around innovation best practices and five common traits emerged, including: leadership for innovation, a culture to support innovative thinking, the freedom to fail, the ability to pivot quickly, and the capacity to test new ideas effectively. These traits are at the intersection of strategy and innovation, but how can organizations maximize this interdependency? Innovation is proving to be a reliable platform of renewed profitability for organizations (Bessant, Lamming, Noke, & Phillips, 2005), and it is important that practitioners understand what innovation can do for their firm. Innovations can impact ecosystems, business models, technologies, and practices and every organization needs to consider where–—and in what configuration–—innovation can have the greatest impact for them. Yet, challenges for many organizations remain. Due to competition and ever-changing customer preferences (Christensen, 1997; Porter, 1981), firm profitability is constantly under pressure and organizations are having difficulty responding. At minimum, innovations must be planned and incremental as sustainability is contingent on a constant source of new value creation. It is undisputed that firms must adopt an innovation approach; firms that do not innovate inevitably have poorer performance (Dobni, 2010; Drucker, 1985; Schumpeter, 1911). The game of innovation can never be considered complete.