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Related Experiment Videos

Mapping your innovation strategy.

Scott D Anthony1, Matt Eyring, Lib Gibson

  • 1Innosight Consulting Firm, Watertown, Massachusetts, USA. santhony@innosight.com

Harvard Business Review
|May 3, 2006
PubMed
Summary
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Companies can develop growth strategies by identifying disruptive innovations, which offer new solutions and appeal to overlooked markets. Focusing on innovation patterns, not just financials, and maintaining flexibility are key to business growth.

Area of Science:

  • Business Strategy
  • Innovation Management
  • Entrepreneurship

Background:

  • Most companies lack detailed game plans for creating innovative growth businesses.
  • Managers often perceive innovation as a "fog" obscuring high-potential opportunities.

Purpose of the Study:

  • To provide a framework for developing growth strategies based on disruptive innovations.
  • To guide companies in identifying and capitalizing on innovation opportunities.

Main Methods:

  • Defining disruptive innovations based on Clayton Christensen's pattern.
  • Analyzing major market innovations to create customized "playbooks."
  • Prioritizing innovation pattern fit over detailed financial estimates in early stages.

Main Results:

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  • Disruptive innovations offer new solutions, perform adequately on traditional metrics, excel on new dimensions, and are initially unattractive to incumbents.
  • A "playbook" approach, focusing on innovation patterns and flexibility, aids in penetrating the "fog" of innovation.
  • Companies can gain competitive advantage by mastering the identification and execution of disruptive innovation patterns.

Conclusions:

  • Developing a "playbook" for disruptive innovation is crucial for business growth.
  • Flexibility, including project termination and process exemption, is vital for innovation success.
  • Sustainable competitive advantage through innovation competencies is challenging as patterns become obvious.