Innovation: Focus your investments for impact
If you’ve been disappointed in the return on your innovation investments, you may need to re-focus your efforts. I’ve found my clients have great success when they use two factors to determine their focus:
- Market share: If you have a dominant position in the market, you have the power to influence its growth potential. If not, your growth potential is largely a function of market trends outside your control.
- Industry growth: If the industry is and will likely continue to grow, ride the growth curve. If not, it’s time to make a change.
If you’re a leader in a growing market, innovate to expand the market or risk being eclipsed by your competitors. In a shrinking market, innovate to change the market or begin moving industries.
If you’re a bit player in a growing market, focus on capturing market share—and growing your influence. In a declining market, innovate to move industries. If the pie is shrinking, why fight for crumbs?
