Incorporating innovation into the business strategy

The innovation strategy/strategies are formed within the business strategy, along with other strategies such as product, technology and marketing, as shown in Fig. 2.1. The formulation of company goals and strategies is very much an iterative process, integrating the various strategies in the direction of the business goals, and using forecasts and analysis of possible outcomes, with an understanding of the company's capabilities.

Top management develops an innovation blueprint - a vision that defines the future role that innovation plays in the long-term goals of the company (Kuczmarski, 1996). The basis of this is an understanding of how innovation affects the company's main stakeholders - consumers, staff and shareholders; how it is related to the value of their company - capital value, share price; and how it is related to the value of their brand(s). This blueprint is the standard for accepting an innovation possibility into the business strategy.

The top innovation possibilities are combined with the blueprint to develop an innovation summary, which is built up with the product, marketing and technology strategies into an innovation strategy.

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