Importance Of Strategic Innovation In Companies

Importance of strategic innovation in companies

Many companies by resorting to innovation and strategic planning still try to discover and preserve competitive advantages that allow them to differentiate and distance themselves from competition and thus ensure their survival. This is a traditional approach in which organizations compete frontally to achieve an advantage within an already delimited sector. From this perspective there is a greater number of companies that compete in the same sector, in which the market is distributed by decreasing their margins gradually, which limits their growth opportunities.

At the beginning of the present century there were social, cultural, economic, political, and technological changes, which favored the acceleration of the markets exposing companies to face increasingly brief products and services cycles with a very changing demand with a very changing demandof complex, sophisticated and demanding consumers who have at their disposal a diversity of products and services available in various channels, both physical and virtual. Under these conditions a new oriented current was created that considers that the success in the survival of companies lies in the creation of new markets, in search of a non -existent demand that is still unbelief. All this leads to focusing on demand and not on competition, that is, creating in the company a new innovative value proposal to give birth to a new demand. This way of achieving an advantage is called some authors as "strategic innovation".

This new way of thinking states that strategic innovation is one that manages to conceive intermittent innovations, which are created by people of great creativity, managing to organize nascent markets through the insertion of new products or services and that may have the ability toMake disappear or transform full sectors. We have a new vision of the strategy in which the essential is to offer innovative products, services and businesses to generate new demand (discontinuous or radical innovation). However, putting it into operation involves complications that have not been taken into account in traditional administration and management models, and therefore, there is no very clear or defined recipe of how, systematically, addressing this type of innovations.

Among some of the characteristics that identify strategic innovation, discord with the classic definition of the business and the alleged axioms of what leads to success stands out. It is not simply about product line widening, geographic recreation, or technology improvements. It is required of the development of some new knowledge, capacities and skills that must be put into practice before any competitor so there is no exact formula to achieve success.

Strategic innovation will occur when a company identifies an empty space in a given market, decides to occupy it through a modification in the combination who requires it?, What is required?, how they require it? , And then this space becomes a massive market. When talking about spaces, new consumer segments are taken into account or those segments not considered by competition, new needs or needs not considered by competing companies, as well as new ways of producing or distributing new or existing products to customersnew or existing.

Therefore, to do different things, you should previoushave started the competitive game.

Globalization, the Internet, the use of smartphones, applications and constant technological changes are some of the factors that have changed environments and rules of the game in industries. In that sense we can conclude that, for a company to have a successful and promising future, strategic innovation is transcendental, which is a creative and orderly process through which the company must perfectly recognize the environment in which it develops, if possible to project itand identify free market spaces that are not being served by their competitors after which objectives must be proposed and implement value creation strategies to cover them and lead these market spaces.

Innovation opportunities can be caused by different factors such as changes in consumer preferences, regulation, government policies, technology or competition. Likewise, companies that innovate in new business models will definitely achieve a better performance than those that remain more focused on the improvements of their own products, services and their operations.

To implement a strategic innovation process, the support and commitment of senior management is required, as well as all the areas and collaborators of the company because it requires effort and dedication, as well as large economic and material resources to break rules, paradigms, modify existing markets, search for new markets, among others.