Strategic Innovation

Nuttaputch Wongreanthong@nuttaputch

Agenda

• What is Strategic Innovation

• Strategic Innovation as a new game strategy

Strategy

Strategy is about winning

Strategy Is A Company's Game Plan For Winning, Either By Competing On Scale, Speed or Special Relationships.

Game changing of Product /Services

Strategic Innovation Is A Company’s Game Plan To Win By Changing The Game.

‘studying historical data and making extrapolations for the future’

it relies on the assumption that the future will follow like the past

That’s why it’s so important to find someone who...

Strategic Planning Strategy Innovation

Analytical Creative

Numbers-driven Insights-driven

Company-centric Market-centric

Logic/Linear Heuristic/Iterative

Today to tomorrow Tomorrow to today

Extend current values Create new values

Fit the business model Create a new business model

Component of Strategic Innovation•Develop Industry (and Technology) Foresight: Which changes

happen in the Industry, are the value chains being reorganized (vertical or horizontal), should the business concept needed to be redefine.

•Develop Deep Customer Insight: Which values, feelings and attitudes amongst end users are important?

•Develop New Value Propositions: A Unique Value Proposition (UVP), which is one of the most essential elements of a business strategy. A UVP is a succinct statement of the uniqueness of a business that sets it apart from all competitors. Without a UVP, a company risks becoming lost in a sea of similar businesses.

•Develop New Capabilities: These are the new skills and knowledge enables a company to deliver unique value to customers. It embodies an organization's collective strengths, particularly of how to coordinate activities and integrate multiple technologies.

•Refine or Develop New Business Model: 

Strategic Innovation=

New Game Strategy

New Game Strategy is ...

set of activities that creates and/or appropriates value in new ways

•Product Innovation•Delivering existing product in new ways•Better positioning firm

New Ways?New Game?New Value?

It’s about something....

Follow the rulesor set the rule?

It can be done in ...

Technology•Patents•Product/process choices•sources

Product Design•Aesthetics•Function•Quality

Manufacturing•Assembly•Capacity•Location

Marketing•Advertising•Brand•Price

Distribution•Channels•Integration•Inventory

Service•Prices•Speed•Warranty

5 Questions to be answered

•Which activity to perform?•When to perform?•How to perform?•Where to perform?•What to expect as output?

Activities

•Firm performing the right activities?•Does it have what it takes (resource / capabilities) to activities?

Value

•Is the value created by the strategy unique, as perceived by customers, compare to that from competitors?

Appropriability

•Does the firm make money from the value created?

Changes

•Does the strategy take advantage of change (present or future) to create unique value and/or position itself to appropriate the value?

Strategy Activity Value Appropirability Change Consequence

1 Yes Yes Yes YesSustainable competitive advantage

2 Yes Yes Yes NoTemporary competitive advantage

3 Yes Yes Yes/No YesTemporary competitive advantage

4 Yes Yes No NoCompetitive

parity

5 No/Yes No Yes NoCompetitive

parity

6 No No No NoCompetitive disadvantage

Case Study