Innovation helps to adapt to the accelerating changes occurring frequently and prepares organizations to survive in the dynamic business environment. Innovation and strategy have a crucial relationship. To create a differentiable value in today’s economic environment, companies need to establish a synergy between innovation and strategy. Innovation plays a fundamental role in transforming the conception of strategy into realistic entities in the market. It should be aligned with the objectives of the company to yield better results and deliver a more productive impact.
How to align innovation with business objectives?
Both the innovations and objectives need to be equally valued, thoroughly communicated, and broadcasted to create a culture encouraging the alignment of these two. The short and long term goals of the company need to be conveyed to all their employees so that all levels become aware and can focus on regulating their activities to support these objectives. A portfolio approach can be taken by businesses to achieve the desired alignment. Identify those problems for which you already have solutions, the ones that require sufficient improvement, and finally those problems which demand innovative solutions. This is how innovation efforts need to be focused.
What are the benefits of doing so?
Aligning the strategies following the objectives would create an impact that is tenfold greater than working independently. This will help in product enhancements by continuously improving the company’s operations. Business growth is fueled by innovation and it will help to cover the growth gap desired by the stakeholders of the company.
A well-outlined strategy advocates innovation and increases engagement. The company needs to have a clear strategic understanding of the objective of their business. This creates the roadmap for productive development. These strategic connections need to be formulated for giving the innovators a better chance to convey concepts that offer alignment to their strategic needs.
Along with this innovation, investments must be linked to the growth gap that innovation is expected to close. Sufficient research of the company’s past investments must be conducted to achieve an insight for financing innovations.
Hence these decisions should be made keeping in mind the main target: adapting to the changing business environment. The innovation mindset needs to be transformed into meaningful work throughout the company so that a vast impact is created on the market, improving the organization’s position with respect to its competitors. This will ultimately result in an organization-wide commitment to strategic planning and implementing the company’s version of the innovation master plan.