ENTREPRENURSHIP DEPARTMENT
BUSINESS INNOVATION
STRATEGIES
Creativity and Innovation
What is Creativity;
• Creativity is the act of conceiving something new,
• Can be a variation on a theme or something wholly new.
• May result into existence something new that has not been in
existence before
• A creative person generates and recognizes ideas, alternatives and
alternatives and or possibilities that may be useful in solving
problems
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What is Innovation
• Innovation is the act of putting something into practice coming up
with something completely new, something that no one has ever
done before
• translates an idea or invention into a good or service that creates
value
• in business, innovation usually results when ideas are applied to
further satisfy the needs and expectations of customers
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Creativity vs Innovation
•Creativity is about unleashing the potential of
the mind to conceive new ideas.
• Innovation is about introducing change into
relatively stable systems. It's also concerned with
the work required to make an idea viable.
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What is a Business strategy?
• A strategy is a plan of action which can be acted upon to achieve an
objective.
• A business strategy is an action plan which needs to be acted upon to
achieve business goals, missions, vision, and objectives.
• A business strategy creates a vision and direction for a business
organization.
• Business strategies provide vision and prevents individuals from losing
the sight of their business aims/objectives
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Examples of business objectives;
•Increase profit margins
•Increase efficiency
•Capture a bigger market share
•Provide better customer service
•Improve employee training
•Reduce carbon emissions
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Innovative Business Strategy
•An innovative business strategy is a plan of action developed
to guide decisions on;
• how resources should be used to achieve business
objectives,
•deliver value,
•and build competitive advantage.
•It is a commitment to innovation mission and a structured
set of activities designed to support achievement of a
business objectives
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Developing Innovative business strategies
involves:
•An analysis of business’s;
• competitive
and technological
environment
•Its external challenges and opportunities
•Its distinctive advantages.
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EXAMPLES OF INNOVATIVATIVE BUSINESS
STRATEGIES
Incremental innovation strategy:
•This involves utilization of your existing technology to
increase value to your customers
•involves improving on the features of your product,
quality of your product, design of your product and
packaging of your product.
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Cont…..
Disruptive innovation strategy:
• This involves applying new technology or processes to your business
‘s current market.
• The new technology disrupt/surpasses the old technology and all the
existing processes hence creating new ways and methods of
marketing in a business.
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Cont…….
Architectural innovation:
•This involves taking lessons, skills and overall
technology and applying them to come up with a new
and improved product to serve a new market.
•This innovation amazingly increases new customers if
the new market is receptive
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Cont…..
Radical innovation strategy:
•This type of innovation gives birth to new
industries/swallow existing industries.
•It involves creating revolutionary technology.
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In summary;
The above types of innovation illustrate how business can innovate
their;
• products,
• processes,
• methods of production,
• machines, and
• marketing activities
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PROCESS OF DEVELOPING INNOVATIVE BUSSINESS
STRATEGIES
1.Develop a true vision for your business
•his involves visualizing the future of your
business.
• Its developing a picture of how you would like
your business to be like in future in terms of
customers, markets, sales volumes etc.
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2. Define your competitive advantage
•This involves identifying how your business can deliver
unique value to its customers to attract a big market.
•It should include thinking of how your business can
create space from competitors in its service offering,
pricing model, delivery system and more.
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3.Define your targets
•It is important to identify the markets you want serve,
the sales you desire to make, the profits you desire to
make and many others.
• Clear targets give businesses the ability to create an
integrated sales and marketing approach.
•Sales and marketing plans are executed more
effectively when targets are set.
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4.Focus on your systematic growth
•Identify the segments your business will
develop/grow so that the products you are selling
yields specific net margin results.
•By doing this you will be able know how much you can
afford in terms of overhead expenses and general
expenditures
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5.Make fact-based decisions.
•Decisions made should be based on facts (good data)
which is consistent and is useful in the formation of
strategy.
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6.Think long term
•Despite changes in the business environment, it is
important to think long term rather than short term.
•Successful businesses treat strategic plans as annual
events.
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7.But be nimble
•This involves evaluating long term external forces
which are likely to affect your business and identifying
ways of adapting based on new information gathered
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8.Be inclusive
•It is important to include different critical/resourceful
people in strategy development.
•Business owners should include people they trust and
can think strategically.
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9.Invest in time pre-work
•Conduct research and gather relevant information in
advance before you make a strategy plan.
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10.Measure your results and execute excellently.
•Develop a strategic plan action which can tracked
monthly.
•Identify key performance indicators to guide your
actions.
•Set up a calendar to meet your employees to establish
performance
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Assignment
•Discuss the various ways in which ICT may be
incorporated in business growth and
development
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IMPORTANCE OF A BUSSINESS STRATEGY
• A well-defined business strategy offers a guide on how your business
is;
• performing internally,
• how you are performing against your competitor and
• what you need to stay relevant in future.
• A strategy can identify trends and opportunities in the future. It can
examine the broader changes in the market such as political, social, or
technological changes, and ca develop tactics so that your business
can modify and develop to suit these future changes.
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Cont………
•A business strategy can create a vision and direction
for the whole business organization, and this can help
individuals not to lose sight of the business goals.
•By creating a business strategy, a company can create
a competitive advantage and ultimately understand
more about themselves and where they are going
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