Premium Essay

Strategic Innovation

In: Business and Management

Submitted By rcrockett
Words 1430
Pages 6
Innovation Strategy
A corporation’s innovation strategy is an important factor for viability and success of that organization. “In a discontinuous world, strategy innovation is the key to wealth creation” (Mintzberg, Lampel, Quinn, & Ghoshal, 2003, p. 471). It is a way for new entrants to succeed in the face of adversity and a way for incumbents to reinvent their products for success. This paper evaluates Microsoft Corporation’s innovation strategy as it related to its product and also evaluates the strategy as a measure of the company’s success.

Company background and SEC filings

Founded in 1975, incorporated in 1981 and with an initial public offering in 1986, the Microsoft Corporation mainly focuses on developing software products and services for their customers. There are five divisions of Microsoft: Windows and Windows Live Division, which creates operating systems for PCs; Server and Tools that develops server infrastructure and software; Online Services Division that focuses on easing consumer concerns and simplifying searches with Bing; Microsoft Business Division, which sustains the Microsoft Office Suite; and the Entertainment and Devices Division with products such as the Xbox360 and Kinect. Microsoft operates in more than 100 countries around the world, with sales growth attributed to creative design of new products and services. Their main competitors are Apple, Google, Yahoo, Adobe, Nintendo, IBM, and HP. With that level of competition, Microsoft is thoroughly committed to staying at the top of their business. To do this, they developed a deep passion for research and development that results in exciting new products that keep the world on its toes. In a recent corporate report, Microsoft declared a dividend of 23 cents per share, in which shareholders saw an increase of 15%. This shows Microsoft’s continued growth in the industry since...

Similar Documents

Premium Essay

Strategic Innovation Management in Global Industry Networks

...axwell Scientific Organization, 2010 Submitted date: August 30, 2010 Accepted date: October 09, 2010 Published date: December 10, 2010 Strategic Innovation Management in Global Industry Networks: The TFT LCD Industry Guenter Boehm and 2 L.J. Fredericks Strategic Marketing, Samsung Electronics Co. Ltd., Yongin-449-711, South Korea 2 The Center of Poverty and Development Studies, Faculty of Economics and Administration, University of M alaya, Kuala Lumpur-5060 3, M alaysia 1 1 Abs tract: This study examines the strategic innovation management of the business creation process across the technology industry value chain in the global thin-film-transistor (TFT) liquid-crystal-display (LCD) industry based on an anonymous online survey of employees in the industry value chain and outside exp erts (universities, consultants, etc.). The study confirms that technology strategy formulation and a strategic center position are key industry concerns. It also affirms the utility of the industry value chain framework to manage technological innovations transcending that of a single company, and that strategic innov ation m anag eme nt in global high technology industries incorporates a shared business creation process structure involving as many industry value chain partners as possible. Key words: Global high technology industry networks, strategic innovation manageme nt, TFT L CD industry INTRODUCTION Globalization, de-regulation an d inno vative communication technologies have radically......

Words: 7166 - Pages: 29

Premium Essay

Fueling Strategic Innovation

...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......

Words: 759 - Pages: 4

Premium Essay

Strategic Management and Innovation

...Name of Student: Case#: Case Analysis 4 Name of Couse/#: Strategic management of technology (NETW583) Date: 1. Why did Google make this move? What do hope to accomplish Answer Google made this move so that they could become innovative. Google wanted to be known for a broader scope of activity instead of just for web site and maps . “Google interest in the spectrum came after AT&T and other larger broad band provider expressed interest in recent years getting web base business to pay more fir their customer use of broad band network.” ( Google wants monopoly over internet experience and the device that host it. If they won the bid they could control sales for their services. Google wanted the same bid on their network. Due to the 700 MHz spectrum it was perfect for wireless industry as it could travel farther than others wireless network 2. How does Google support for open access fits into Google plans Answer “Google has said it would bid on the 700MHz spectrum only if the FCC guarantees certain open-access principles; including open access for companies wanting to buy wireless capacity wholesale.” ( The four freedom laid down by Google was i. Use any application on any device they want ii. Other company would be able to license their spectrum at wholesale price iii.......

Words: 568 - Pages: 3

Premium Essay

Innovation and Strategic Management Paper with Annotated Bibliography

...Abstract 1 – Strategic Planning vs. Strategy Innovation In business, it is essential to differentiate between strategic planning and strategy innovation. Many corporations have defined processes for carrying out strategic planning - which is basically studying historical data and forecasting anticipated outcomes for the future (Scocco, 2010). It involves creating a fit to the current business model, a process centered on the company aiming to exalt the processes already in place. This method has one big flaw, however, because it relies on the assumption that the future will mirror the past. Strategy innovation, conversely, creates new business models, as it is centered on the market aiming to find new ways of creating value through new processes or products. Overall strategic planning is a major analytical process while strategic innovation is a creative one, and as Henry Mintzberg said “…nobody in the history of the world has ever created a strategy through an analytical process” (Scocco, 2010). Strategic innovation is designed to succeed in dynamic markets but that does not mean strategic planning is an obsolete management tool. The two can and should co-exist; companies should start by carrying out strategic innovation in order to identify future business opportunities and trends in the market. Afterwards they transfer what they discovered into the analytical process, making sure the action plan will fit the company’s resources, processes and values (Scocco,......

Words: 1117 - Pages: 5

Free Essay

Strategic Innovation Simulation

...Strategic Innovation Simulation Back Bay Battery How To Win The area is remarkably quiet and relaxed when we cycle around one weekday afternoon; indeed it comes as quite a shock when we leave the confines of the village and are suddenly pitched back into the … 1960s through to the end of the Conservative … Ground broken in celebration of $14 million Battery Innovation Center – Charles "Chuck" LaSota, who serves as president of the Battery Innovation … a huge win when you see local, state and federal officials together and I thank Greene County officials for their leadership on this project," Skillman said. Dating back to … When the two forces converged in 2008 to back Chinese electric car company BYD … are seeking validation in U.S. markets and innovation through American partnerships. On the surface it’s a win-win scenario, but one that can quickly be torn apart by … Citation: Shih, Willy C., and Clayton Christensen. "Strategic Innovation Simulation: Back Bay Battery." Simulation and Teaching Note. Watertown, MA: Harvard … Wow How To Get Leather Without Skinning These people want spectacle, and they’re going to get … ll need leather pants, obviously, and black biker gloves to contrast with his pasty white skin, and in homage to his Canadian upbringing, two tasteful maple leaf … Everyone loves Drake because he can get … without feeling awkward. Women say he is a vulnerable Patrick Rice, Mainstay Capital Management 100% Satisfaction Guaranteed You are......

Words: 263 - Pages: 2

Premium Essay

Strategic Management of Technology and Innovation

...intellectual capital is the key for competitive advantage and profitability, in a free market economy, competitors try to appropriate it for their own. Thus a firm might lose its intellectual property to its competitors; this could happen in three ways (Narayanan, 2000): Imitation: It is the serious threat to any competitive advantage. If the imitators were faced by the high cost of the imitation or a legal notice they cannot benefit from the innovators idea. Obsolescence: competitors can engage in innovation and they enhance the innovation into a product more superior to the original product. Infringement: competitors sometimes steal the original idea from other firm’s knowledge. Hitachi and Mitsubishi stole technological secrets from IBM. With these issues the firms need to protect their intellectual property in order to keep the advantage and survive in the market of competition. This could happen in several ways: A firm may take several actions in order to protect their innovations and the power of their products. They may invest in advertising, or develop arrangements with licensing; sometimes they shut down the distribution channels to cut the way on those imitators. Another way the firms may take to...

Words: 654 - Pages: 3

Premium Essay

Strategic Innovation Case 1

...1) Would you have been long or short Blockbuster stock at the time of the case (i.e., late 1990s)? How about Netflix? Why? Before we could answer the first question, status quo of video rental industry (hereinafter referred to as VRI) in late 90s, has to be introduced. In those days, Blockbuster was dominant company in VRI and video games industry, almost on the top of its glory with $ 4,4b total revenues in 1999 and little less than 40% of market share. They operated over 7,000 stores in the US, more than 2,000 stores in another 28 countries. Customers could choose from 2500 movie titles in every Blockbuster branch. Fee for renting the movie was from $ 3 to $ 4. (Shih, Kaufman, & Spinola, 2009; Blockbusters, 1999). On the other hand, in late 90s Netflix was relatively newly established private company. At the end of 1999, they had over one hundred thousand subscribers. Netflix provided only DVD video rental services, based on online ordering (through Netflix web page) by customers and subsequent mail delivery DVDs by the US postal service. Their total revenue was $ 6,6m. Netflix had only one distribution centrum based in Sunnyvale, California. Every DVD in the US was distributed from this place. Netflix new business model (announced at the beginning 2000) was (in 2013 still is) based on monthly subscription. Every customer could borrow 3 DVDs at the same time and they could pick whatever they like. Given that historical background, it is reasonable preferred long-term...

Words: 1221 - Pages: 5

Premium Essay

The Management of Sporting Innovation at Decathlon. Between Rationality and Chaos

...The management of sporting innovation at Decathlon. Between rationality and chaos (P262) Guillaume Richard*, Yann Abdourazakou* Abstract: The point under study is the first of such a nature. We investigated the management of innovation in the company called Decathlon. In recent years, vertical integration has rarely been so much developed as in the leading company of sporting goods’ distribution in France. Based on the group’s “sporting universe” concept, it now challenges some bigger firms’ on their main segment. We interviewed the head of innovation for Decathlon’s brands in France and Europe. Since the 1990’s, Decathlon’s strategies have not taken a unique and rational way towards success. Sometimes unexpected, they do not fit the traditional and rational management model of this aspect of competition between firms. Finally, some non technological aspects of innovation play a key role in the group’s success. Now a major force in the domain of sports equipment, the company Decathlon represents today almost half the French market in the distribution of sporting articles1. From bikes to rucksacks, from hiking boots to tennis rackets, this brand has acquired a great deal of savoirfaire in the conception, the realization and the production of its “universe” brand. By way of an example, Decathlon is the biggest producer of bikes (Btwin) in the whole of France, the number 1 in the country for rucksacks and the fourth largest producer in the world of sporting......

Words: 7339 - Pages: 30

Premium Essay

Entrepreneurial Strategy

...Entrepreneurship and Innovation Session 3: Entrepreneurial Strategy Baden U’Ren Level 4, Room 9 5595 2212 Overview  Review of the readings  Innovation and Entrepreneurship  Entrepreneurship in a Corporate Context  Entrepreneurial Strategy What is Innovation? Something NEW that creates VALUE What is Innovation? “Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or service. It is capable of being presented as a discipline, capable of being learned, capable of being practiced” - Peter Drucker Source: Schaper & Volery (2007) Entrepreneurship and Small Business 2nd Edition. Wiley. p.69  Creativity  ideas, concepts & inventions  Innovation  the process of development and commercialisation  Entrepreneurship  couples opportunities and resources Innovation Exploit Incremental Explore Radical Kirzner The producer-entrepreneur •Alert and responsive to opportunities that exist •Exploits disorder (gaps) to move the market back to equilibrium Schumpeter The innovator-entrepreneur: •Creates products and processes to disturb market equilibrium •Creates opportunities Innovation & Performance Some ‘stylised facts’ about the relationships between innovation and performance:  Relationships between R&D, patents, new products and performance are strongest at the industry level, weakest at the firm level  Returns from process......

Words: 733 - Pages: 3

Premium Essay

Mkt569 Midterm

...precise illustration, explain how BMW has planned innovation and new product development to manage its technology life cycle, i.e., product life cycle The ways in which BMW has planned innovation, and new product development, to manage their technology life cycle and product life cycle, has been accomplished through consistent innovation. In consideration of the life cycle of BMW, there are many factors taken into account when developing a marketing strategy. Life Cycle Value Assessment (LCVA), or life cycle analysis, is a tool used to determine environmental, economic, and other various determining factors which can influence the entire life cycle of a given product. It also serves to influence important business decisions. The continued growth and success of BMW can be defined by the way in which they focus on culture as a company. According to the article, Innovation: A Strategic HR Imperative, “For example, BMW’s continued success is its strategic focus on developing customer-friendly innovations, coupled with an approach to innovation management that is unique within the automotive industry” (Stanleigh, 2012). BMW sets themselves apart because they prescribe to the philosophy of a company knowing what it stands for, and capitalizing on its strengths; by doing so it can more easily develop and implement a clear strategy. While some companies put their primary focus on manufacturing, BMW also incorporates innovation throughout every department within the......

Words: 1993 - Pages: 8

Premium Essay

International Business

...Stewart, 1967; Cooper and Schendel, 1976; Rosenbloom and Cusamano, 1987; Rothaermel, 2001a, 2001b; Tushman and Anderson, 1986). Scholars have repeatedly focused on this topic as innovation and new product development are critical for a firm’s survival and growth (Penrose, 1995) and have stated that one of the core competencies needed to develop new technologies is the ability to assimilate and recombine knowledge in unique combinations (Rosenkopf and Nerkar, 2001). Simply put, successful innovation and new product development require the ability to create and use new knowledge to offer novel products or services to customers. Research indicates that firms who possess prior experience are in a better position to innovate (Carroll et al., 1996; Henderson and Cockburn, 1994; Klepper and Simons 2000; Nerkar and Roberts, 2004). Prior studies have also highlighted the importance of knowledge and experience in enabling firms to successfully adapt to changes in technology (Bartel and Lichtenberg, 1987, 1991; Siegel, 1999; Siegel et al., 1997). This stream of literature specifically states that a firm’s technological and product-market experience enables it to “combine knowledge elements into valuable new products” (Nerkar and Roberts, 2004). Although this research stream makes valuable contributions to the innovation literature, it...

Words: 9421 - Pages: 38

Premium Essay

Microsof and Nokia Corporation

...Definition of innovation. The term "innovation" comes from the Latin «novatio» -"renewal" or "change", and «in» - "in line, into". If translated literally, «Innovatio» means «in the direction of change". The concept of innovation has a lot of classical definitions. One of them is – innovation is a process of intentional change made to create value by meeting opportunity and seeking advantage (Dr. Bruton A. (2012). Creativity, Innovation and Entrepreneurship. Retrieved October 7, 2012 from Thus, the innovation means the use of novations in the form of new technologies, products and services, new organization form of production and labor, maintenance and management. That is why, we can say that innovation is possible in all areas of human activity. 7 Interwoven areas of Innovation (Source: Two components of innovation. According to the American Heritage Dictionary (1994), "Innovation is the act of introducing something new". J. Byrd and P.L.Brown, the authors of “The Innovation Equation”, consider that "the act of introducing" is akin to taking a risk and "new" is about creativity. This leads on to what they call the innovation equation: Innovation = Creativity x Risk Taking Creativity is the ability to generate and develop new unconventional ideas, to successfully solve the......

Words: 1708 - Pages: 7

Premium Essay


...International Journal of Innovation Management Vol. 5, No. 3 (September 2001) pp. 377–400 © Imperial College Press DEVELOPING INNOVATION CAPABILITY IN ORGANISATIONS: A DYNAMIC CAPABILITIES APPROACH BENN LAWSON Department of Accounting, The University of Melbourne Victoria, 3010, Australia e-mail: DANNY SAMSON Department of Management, The University of Melbourne Victoria, 3010, Australia e-mail: Received 1 February 2001 Revised 18 August 2001 Accepted 21 August 2001 This paper draws together knowledge from a variety of fields to propose that innovation management can be viewed as a form of organisational capability. Excellent companies invest and nurture this capability, from which they execute effective innovation processes, leading to innovations in new product, services and processes, and superior business performance results. An extensive review of the literature on innovation management, along with a case study of Cisco Systems, develops a conceptual model of the firm as an innovation engine. This new operating model sees substantial investment in innovation capability as the primary engine for wealth creation, rather than the possession of physical assets. Building on the dynamic capabilities literature, an “innovation capability” construct is proposed with seven elements. These are vision and strategy, harnessing the competence base, organisational intelligence, creativity and idea management, organisational......

Words: 8853 - Pages: 36

Premium Essay

Innovation Stategy Development

...Singapore Management University Maters of Science Innovation | Core Module MGMT 661 By Associate Prof. Adel F. Dimian My Definition, Understanding and Response of the Lecture Topic & Discussions. Innovation Strategy Development Part 1&2 When the need of wanting to be different arises, the need to innovate takes a strong hold in one’s mind to bring about new changes that are often challenged in many different styles, manner, methods and modes. To my understanding different types of innovations requires and employs different innovative strategy or strategies. Which in turn determines the growth phase of the organization and its strategic approach and desired outcome of the innovation. Developing an Innovation Strategy Frame Work The Innovative ideas and strategy plans and developments can only take valuable shape and growth with the right leadership and driving force. Therefore with the discussions developed and generated, I have come to an understanding that successful innovation strategy is determined by the true leadership of an innovative leader with an innovative mindset who wants to achieve success for his organization, employees and himself. Instead of being comfortable and clustering around a few achieved strategies, a successful innovative leader begins by setting high targets and aspirations for the organization. Followed by recruiting qualified candidates and instilling tremendous positive energy, spirit and enthusiasm in the work environment.......

Words: 1608 - Pages: 7

Premium Essay


...How to foster innovation in your business Presentation on the occasion of the Credit Suisse event 7th September 2013, Zurich Dr. Reto Müller Chairman of the Board of Directors Helbling Holding AG Helbling - a Leader in Technological Innovation and Business Consulting Helbling Group Key figures 2012  We are unique through our ability to integrate a spectrum of professional know-how, experience and skills.  458 employees  Our ability to link technological expertise with business competence results in entrepreneurial success for our clients.  Companies in Switzerland, Germany, USA and China  Revenues CHF 110.9m  International Network Offices (Corporate Finance International)  Owned by 25 managing partners 2 Examples of innovations at Helbling Extract out of some thousand innovation projects in more than 50 countries Innovation leaders collaborating with Helbling: Nestlé, Roche, ABB, Airbus, Siemens, Medtronic, Schindler, Pfizer, Novartis, Sonova, Google, BSH, Geberit, Sika, V-Zug, Source: Helbling Qiagen, Tecan and many others 3 Strategic innovation management – selected Helbling references Companies Why Helbling?  We measure ourselves - e.g. on the increase of the value of your innovation pipeline  We are senior experts with over 15 years consulting experience and a focus on the topics "Increasing innovation success and increasing the power of innovation»  We use self-developed tools......

Words: 7299 - Pages: 30