Formulate Strategy
Through our hands-on experience in helping companies execute hundreds of innovation initiatives, we have discovered that there are six growth paths that can be followed to achieve growth through innovation. Companies can:
- Add features to an existing platform to help customers get the core job done better.
- Add features to an existing platform to help customers get related jobs done.
- Create a new platform to help customers get the core job and related jobs done.
- Create a new platform to help customers get the core job done better and/or cheaper.
- Create a new platform that enables a new job executor to execute the core job.
- Create a new platform that enables a new job executor to execute the core and related jobs.
Once a company knows precisely which customer needs are unmet, it can accurately assess if and where the market is over- or underserved and whether features can be added to the current platform or if a new platform must be created to address the opportunities or satisfy a new job executor. We have discovered that all markets evolve within these growth paths and that these paths are not mutually exclusive. Ideally, a company will optimize profitability across all six growth paths.
When a company knows which growth path(s) to follow, it can assess the products and services it has in the development pipeline and determine if they fit the strategy or can be modified to fit the strategy. Optimizing what is already in the pipeline is often the fastest way to achieve a success in the marketplace.
If the company cannot optimize the pipeline in a way that will ensure the delivery of a winning product or service, then it has the option to:
- Partner with, license from or acquire a company has the solution it is looking for.
- Conduct an idea generation event that results in a winning concept that can then be developed.
- Instruct R&D to invent a technology that will address the unmet needs.
- Invest in venturing.
Defining which market growth and product / service development strategy to pursue is critical to success in innovation.
