The strategy choices allow us to identify a unique segment, offer, activity, or relative pricing. Innovation facilitates the process of achieving this differentiation.

I propose three elements to consider when rethinking the impact of innovation in your organization.

1. Value Proposition and Innovation

It all starts with the client. Of course.

Still, it is essential to understand the jobs and benefits sought. It is said that consumers buy according to their emotions (benefits) and justify their decisions rationally (jobs).

Whether in a B2C or B2B context, it is extremely important to identify the multiple variables that influence customers’ purchasing decisions.

The identification of competition criteria is more than essential. By identifying the criteria, their importance, and evaluating how our offer is positioned in relation to available offers, we can assess where value can be created (and where it is at risk).

This analysis also allows us to identify modifications to our value proposition to improve it and even include currently unmet needs.

This analytical approach, which leads to the reconfiguration of the value curve, is widely documented and opens the way to different innovation opportunities.

2. Key Activities and Innovation

Addressing the choices associated with the value proposition and those related to the means to deliver this value is essential.

The options are multiple. Selecting activities and resources that are different from the competition opens the door to innovation.

Analyzing an industry’s dominant models can reveal interesting opportunities. What should be done internally? What should be done externally? Where should one focus?

These choices require strategic and operational coherence, allowing for value maximization while reinforcing the unique dimension.

An organization that prioritizes customer service as a differentiating factor would be ill-advised to outsource the management of its call center.

Similarly, an organization that is clear about the nature of its core activities cannot leave the management of its partners responsible for non-core activities to chance. 

3. Core Competencies and Innovation

The organization's key skills, knowledge, and know-how must be mastered, developed, and strengthened.

Given the importance of innovation to strategy choices, it is essential that the innovation process is also mastered, developed, and strengthened. It must be predictable and continuous.

Regardless of the innovation target, the approach must allow for the development of a balanced portfolio of opportunities and enable successful integration into current activities.

Innovation should be part of the organization's culture. It strengthens the strategy and maximizes value for customers.

We do not innovate at 3:30 p.m. on Friday when the various operational obligations are under control (if they can ever be under control).

This systematization requires a clear approach, a method mastered by the teams, in addition to the time and resources necessary to explore and validate opportunities.

Questions:

• How does innovation meet your customers' value criteria?
• How does innovation facilitate the development of unique activities to deliver the desired value?
• Is your innovation process known, understood and mastered by your teams?
• How much time is devoted to innovation each week?

Have a good week

Eric L’Heureux