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Fueling Strategic Innovation

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FUELING STRATEGIC INNOVATION

“Strategic Innovation is the creation of growth strategies, new product categories, services or business models that change the game and generate significant new value for customers and the corporation” (Kotelnikov: 2001). It is a holistic approach consisting of an organized set of practices that motivate imaginative teams to think outside the box and challenge the tyranny of the given (Kao: 1997 in Bonn: 2001). Innovation becomes strategic when it has become a deliberate repeatable process that creates a significant difference in the value delivered to consumers, customers, partners and the corporation. It is also the juncture where an organization can be said to have it as a competitive advantage (Thompson, Strickland& Gamble: 2008). Strategic innovation therefore challenges the organization to break its established business boundaries and mental blocks and to be divergent in its thinking rather than being convergent (Erupting Mind: 2010).
As far as Professor Stephen Brown of Ulster University is concerned, marketers place excessive emphasis on researching and customer satisfaction at the expense of development of strategic innovation. The argument holds some merits. First, being strategically innovative will make it possible for marketers to achieve a capability that can be reproduced in better tools assemblage, processing and idea generation than competitors. Second, building capability in strategic innovation will enable the organization to achieve differentiation and hence be able to increase its margins as margins fall when firms become more alike. This is a positive impact on the bottom line. Third, differentiation will lead to the attainment of a competitive competence over rival companies. This is the same point Michael Porter (1996) is emphasizing when he says that companies should do things differently from competitors or

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