Evolve beyond creation of new products/services to create new business models

In a dynamic market product/service innovation in isolation is not enough to remain competitive and achieve maximum impact. (De Jong et al., 2013) Indeed new models of doing business are a key innovation theme and opportunity, as well as a significant risk of business disruption. In doing so it is essential that organisations do not take a narrow view of its business model and are able to effectively pilot new models and explore broader opportunities. In order to keep pace in a dynamically changing market it is absolutely necessary to be agile in your development and launch of innovations.

Accelerating development and launch of innovations

The organisation’s innovation strategy needs to consider its innovation positioning. There are broadly four generic innovation positioning strategies, including: proactive leader; active/fast follower; reactive/follower; and, passive/follower.

Innovation positioning

A proactive leader can often bring large first mover advantages and create positives in terms of reputation and brand, customer loyalty, product/service distribution and other market benefits; however, it will commonly involve acceptance of higher risk and subsequently a higher risk tolerance. (De Jong et al., 2013) Funding and revenue models may also emphasise the necessity for where the organisation decides to position its innovation strategy, whether as a proactive leader or fast follower; in order to compete for funding in a resource scarce market. Positioning as a proactive leader an organisation must have fast and effective development and launch of innovations. (De Jong et al., 2013) The innovation development process should seek to dismantle the barriers that stand between a great idea and the end-consumer. (De Jong et al., 2013) The organisation should, where possible, avoid detailed and refined processes that have stage gates and ensure customers are involved in field testing and prototyping along the complete process. (Boonda, 2019; De Jong et al., 2013) This should be supported by a Research & Development (R&D) framework, ensure cross-functional teams working across projects, and take an iterative approach through field testing and customer co-creation. Iterative development allows creation of test markets, technical refinements, and assurance in operational capacity by verifying under realistic field-testing conditions. An approach to innovation R&D in social and public health is suggested in the model below.

A social & public health approach to Research & Development (R&D)

A successful R&D platform requires solid partnerships and collaboration.

In our next blog we will consider how innovation efforts can be successful when firms openly collaborate...

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References

De Jong, M., Marston, N., & Roth, E. (2013). The eight essentials of innovation. McKinsey Quarterly, Strategy(2), 36–47. https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-eight-essentials-of-innovation

Dodgson, M. (2019b). Innovation strategy (Lecture 8). TIMS7811 Innovation Leadership, University of Queensland [UQ].

Boonda, P. (2019). Process of Research and Development in Public Health. International Journal of Clinical Case Studies & Reports Process of Research and Development in Public Health [IJCCSR], 1(3), 61–65.