Innovators rely on attractive markets. This is always risky. That is why innovators are in conflict with both the experienced old hands and the strategists. The experienced old hands resist risks. They focus on their own resources. They align with them growth and investment strategically – until it is too late.
Innovators focus on large and dynamic markets. This includes risks. For example, they often lack some of the necessary resources. That is why they are cooperating in a targeted way, thus spinning an innovation network. They strengthen their resources and make the market even more attractive.
Experienced old hands resist innovation risks. They focus on their own resources, but less on the management of cooperations. They strategically align growth and investment with their own resources.
Strategists strongly recommend growth and investment when the market is attractive and the own resources are strong. However, if one’s own market becomes unattractive, the conflict is pre-programmed with the experienced old hands of dealing with the resources. If the market appears attractive in the case of weak resources, the development of the strategy is often complex. It often lasts longer than innovation. This leads to a conflict with the innovator, who is convinced of his idea, and the risk of being a laggard.
The chosen balance between the innovator, the experienced old hands and the strategist shapes the innovation strategy. For example, cost leaders and market leaders with strong routine often imitate others as fast-followers.
Oligopolies with a strong routine prefer innovations in the form of applications. New generations of products are rarely developed. These often have major ramp-up problems because the innovators are too weak and hence the new technologies are not mastered. If the strategists are also weak, the oligopolies are reluctant to separate from overripe businesses. The oligopoly remains very stable.
New functions and disruptive innovations require strong innovators. Start-ups and financially strong companies with a strong innovation heritage deal with this. They destroy stable oligopolies. For the latter it is then too late since long time.
We advise you to renew your strategy and organization in favor of innovation and for constant innovation success.