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Chapter 4

Summary

This chapter has covered the first element of the Pentathlon – innovation strategy.
We have discussed the various factors, some subtle and some not so subtle,
that demand innovative change. These have the common feature that they stem
from the blocking of pre-existing routes to competitive advantage either through
loss of scope for improvement or through satisfaction of market demand. This
chapter has shown that:

• An innovation strategy should identify and prioritise the needs for innovation,
  in the various parts of the organization, showing what dimension and
  degree of change is required.
• Innovation strategy must be an ongoing process not a single point event.
  
• The need for innovative change often comes from slowly developing trends,
  which may be difficult to recognize and respond to. Among these are technology
  maturity and threats from disruptive technologies. Kano’s analysis
  provides a useful structure for understanding these.
  
• As companies and competencies mature the focus of innovation moves
  from products and services to business processes.
  
• Organizations should choose the timing of innovations with care. Network
  and threshold effects can give advantages to earlier entrants.
• Roadmapping is a flexible way to formulate and communicate innovation
  strategy. Different formats are available for different strategic issues.
• Successful organizations acquire disciplines and ways of working that are
  vital to continued success in their current operations but make change more
  difficult.