Becoming a consistent innovator requires an effective strategy, one that is that answers the question that keeps most leaders up at night: how do we stand out and stay relevant in a massively distracting and mostly disruptive world?
A good strategy answers that question clarity on two key choices: where to play, and how to win. Too often, people don’t know what winning looks like. Without a vivid picture of a dramatic destination and a workable travel plan, why it’s urgent and important for everyone to be on board, and what things will look like when they get there, creative engagement in the innovation initiative will surely wane.
innovate, or evaporate
The magic of strategy lies in the rich discussion and creative energy involved in framing those choices in just the right way. Blending established tools and a reliable facilitation method honed over years of working with some of the world's most innovative business minds, EDIT offers three unique engagements to help leaders at all levels craft a winning innovation strategy:
At EDIT, we subscribe to the approach devised and taught to us by our esteemed colleague and friend Roger Martin, dean of U. Toronto's progressive Rotman School and former head of Monitor: strategy is really about an integrated cascade of choices that uniquely positions a player in its industry to create sustainable advantage and superior value relative to the competition.
Making and acting on choices produces winners. Why? Because clear, tough choices force your hand, confine you to a path, but free you to focus on what matters most: winning. Great firms don't choose to simply play. They choose to win.
At the center of the cascade lie two key choices: where to play, and how to win.
These two tightly bound choices form the very core of strategy and are the two most critical questions in strategy formulation. They're invaluable when it comes to innovation strategy.
Which is why they form the heart of the EDIT Play-To-Win Summit.
The Summit moves from gaining clarity on the winning aspiration--the value you wish to create, and the problem you want to solve--to choosing a playing field that allows you to achieve that aim and brings the required focus, to defining the choices for winning on that field. To determine how to win, you must decide what will enable you to create and sustainably deliver unique value to customers in a way that is distinct from competitors.
Once the critical choices have been clarified, each choice is reverse engineered to determine what must be true in order that a given choice is executable.
The outcome is a powerful portfolio of testable hypotheses which, when explored, yield the final winning strategy for high-performance innovation.
The pressure to innovate in a fiercely competitive market demands a strong and balanced portfolio of innovation initiatives. All too often those initiatives are haphazard, dispersed, and episodic. The investment in innovation isn't managed as effectively as other investments: with a clear portfolio strategy optimized for the highest overall return.
Enter the EDIT Total Innovation Matrix --T.I.M.
The T.I.M. operationalizes the Play-To-Win framework (see Play-To-Win Summit tab above) and helps teams develop a holistic view of how to get ahead by organizing initiatives, resources and goals based on three innovation levels:
- existing
- emerging
- entrepreneurial
The lower lefthand corner of the matrix identifies core innovation initiatives focused on enhancing, optimizing and exploiting changes to existing products and making incremental inroads into new markets.
The upper righthand corner of the matrix identifies entrepreneurial initiatives designed to experiment with altogether new, radical and potentially disruptive innovations.
In the middle of the matrix lie emerging innovations, which leverage a core strength in a new space, share the traits of existing and entrepreneurial innovations, and represent the next generation of high-growth opportunities in the innovation pipeline.
The outcome of the EDIT Total Innovation Matrix session is a compelling visual roadmap of current, emerging and future developments comprising a cohesive innovation portfolio, showing how to link initiatives, align effort, and allocate resources according to a solid innovation strategy.
Generating an innovative business model requires an entrepreneurial spirit paired with a rigorous search for ways to create and deliver new value, to replace, and displace, existing models. The search begins with understanding the nine key building blocks of any business model and how they work together to produce something of value that people will pay for, as identified in Alexander Osterwalder's co-created book Business Model Generation:
- Customer Segments
- Value Proposition
- Channels
- Customer Relationships
- Revenue Streams
- Key Resources
- Key Activities
- Key Partners
- Cost Structure
The search, of course, concludes...never.
The EDIT Business Model Canvas workshop begins with mapping your current business model on a large printed canvas* that captures the nine key building blocks, then examining and ideating around that map to reveal future business model innovation opportunities.
The outcome is a complete "As Is" business model canvas for your existing business, and a separate "To Be" canvas revealing future innovation opportunities.
*Note: The Business Model Canvas is available under a Creative Commons License.
The choice is yours: innovate, or evaporate.
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