Set Strategy

Developing an innovation strategy: Challenges and solutions

Sometimes innovation succeeds without any strategy at all. If you want to create innovation, new products and new business areas in a targeted and regular manner, a compact innovation strategy is worthwhile. The innovation strategy clarifies for everyone what innovation means for the company, how innovation is driven forward and, in particular, what is not done. Because strategy means focus. And a lack of focus is a major challenge when it comes to innovation. Too many things are simply too exciting.

Frequent difficulties in setting up the innovation strategy

Strategy is a big word. And although the answers should be as simple as possible in the end, building an innovation strategy is a major challenge for many. Typical stumbling blocks are:

Lack of templates, templates and standards for an innovation strategy

Innovation is aimed at uniqueness and a unique position. Even more so than in the quality strategy or market entry strategy, for example, it is a matter of proceeding in a way that no one else does. Because this is the case, and because innovation is a relatively young discipline, there are hardly any standard templates for good innovation strategies. Copying and adapting is therefore not so easy.

Too many opinions in corporate management

Innovation is an emotional topic. Almost everyone has an opinion and is quick to demonize certain approaches and strategies. Collecting, moderating or ideally even standardizing these points of view is a difficult task. Not many people do this voluntarily. This is because arguments with sales management, production management and management quickly run out. As a result, different points of view remain latent, are not openly discussed and ultimately there is no uniform strategy. Or one that is boycotted and torpedoed behind closed doors.

Lack of analysis of innovation projects

Every company has experience with innovation approaches. Even if the innovation attempts were not disruptive, incremental innovation happens in every organization. The evaluation of working and dysfunctional approaches to innovation rarely happens. As a result, many attempts fail and failure is often sold as positive learning. The necessary evaluation of successful and failed approaches could be a perfect basis for an innovation strategy, if it were done.

Lack of implementation of the strategy in reality

The best strategy is worthless if it is not implemented. A bad strategy can therefore be recognized above all by whether it helps to bring the company closer to its goal and vision. If the strategy does not do this, then it is usually a bad strategy. It is difficult to understand, not operationalized, not institutionalized in the form of an innovation process and innovation system or not aligned with the employees’ incentive systems. As a result, it does not lead to the desired innovation projects and the desired innovation culture.

Successful approaches to developing an innovation strategy

A good innovation strategy can be the right template for the next five, ten or twenty years. The initial innovation strategy is the basis for regular adjustments and therefore also the most difficult step. The following approaches have proven successful in developing innovation strategies:

Gather stakeholder perspectives

Gathering expectations and concerns is the basis for a joint solution. As different as the perspectives may sound at the beginning, the goals are more similar in the end. Once all perspectives have been collected, 90 percent can usually be formulated into a common message. Only a few remaining contradictions actually have to be fought out between decision-makers.

Assessment of previous innovation efforts

Existing strengths and weaknesses are the basis for the next innovation strategy. Past projects, the innovation culture in the company, important challenges and bottlenecks as well as market conditions and target markets are recorded. Depending on the question, the assessment takes the form of an individual interview, questionnaire or group discussion. The result is the basis for the innovation strategy.

Moderated discussion and decision-making in the strategy workshop

Understanding, consensus and commitment require open discussion and an exchange of different perspectives. This is best achieved in a joint strategy workshop. Good facilitation and moderation ensures that an acceptable consensus, shared responsibility and a good strategy are achieved at the end. A formulated corporate vision is included as a starting point. If this does not exist, the team develops a compact vision for the innovation perspective.