Internal And External Factors Related To Designing Innovation Strategies

Innovation Planning and DesignNameTutor’s Name16/06/2016Internal and external factors related to designing innovation strategiesInnovation may be described as application of new ideas to products, processes or other aspects of a business. The new ideas must be capable of adding value or benefit in the business in order to qualify as innovations. Thus there are two types of innovations, these are product innovation and process innovation. Product innovations are tangible goods, intangible services or a combination of both. Process innovations are new ways of doing or making things arising out of tangible or intangible inputs. Innovation strategies are designed in relation to the type of innovation the business wants to focus on. The following are the factors related to the choice of innovation strategy design. The level of industry maturity is a significant factor in determining innovation strategies. In young industry, innovation strategies are focussed on differentiation and new product development. As the industry matures and the market needs are better defined, businesses shift focus of innovation from products to business processes to make them more efficient. Innovation strategies are therefore more focussed on expenses and economies