Strategic innovation takes several different forms, according to Marc Sniukas, consultant at Doujak Corporate Development. It can vary from one company to another, but the underlying principles, and reasons behind it, are to a certain extent unified. “A lot of strategies use tools designed for the wrong time,” he continues, “and more and more CEOs have picked up on this. Business models work up to a point, but breakthroughs without strategic innovation are not common.” To simplify the point he breaks innovation up into four separate categories, those that are continuous, namely operational and product and service innovation, and those that are discontinuous, management and strategic innovation. Operational and management innovation are internal, where the other two are external.

Essential understanding

So how does this define strategic innovation, and where does it leave it? “It is about growth, for sure,” Sniukas states, “but also about differentiating a company, changing and modernising business models.” It also goes beyond doing something new with your company, and can be concerned with the industry as a whole, which lays down an advantage over the competition. Thus, definitions are somewhat fluid, and Sniukas suggests that rather than focusing on how to define it, one looks at the outcomes derived from it: “it creates new markets. Take the Nespresso example. There was a coffee market before, but not that kind of coffee market.” It also creates new value where there wasn’t value before. “With Amazon you don’t have to go to the bookshop so there is a value creation,” he says. “And with Nespresso, you get a better cup of coffee and it’s easier to make...”

What is the key? Sniukas highlights three aspects: new markets, knowing who your customers are, new value, where can you get it and provide it to the market; and new business models. These three fall under the umbrella term of “strategic innovation.” Whether one wishes to create new business or reinvent an existing one, there are important factors to bear in mind. “You need to know what you have, and understand exactly what it is your business does before you can change it,” says Sniukas. Long-term, statistics show that business model innovation in companies sees them outperform competitors over time. Knowing what it is they do and what they have to do, as well as where they would like to go, minimises the risk that comes with change. It is not the time to be standing still.

See Marc Sniukas’ video interview HERE

See the picture report HERE