You Need an Innovation Strategy

This article argues that all companies need a strategy for innovation - otherwise each department will just do individual best practises but these will not add up to a lasting result.

The three questions of a robust innovation strategy:

1. How will innovation create value for potential customers?
2. How will the company capture a share of the value its innovations generate?
3. What types of innovations will allow the company to create and capture value, and what resources should each type receive?

Four different types of innovation are introduced:

1. Routine innovation: Innovating within the business model and technology you have (this works as long as there is still utility to be had)
2. Disruptive innovation: Same technology, different business model
3. Radical innovation: New technology, same business model
4. Architectural innovation: New technology, new business model