Acquisition & Alliances

A first option is to look externally to companies that are performing well and fit your objectives and then acquire them. It’s a safe way to innovate in the sense that the product or service is already established, there’s a product-market fit or a growing client base, but it often demands a big financial investment and the cultural fit of the companies is to be seen. The same is true for strategic alliances between companies.

External Innovation Consultancy

A second option is to look for external consultancy specialized in your domain and in innovation. They can help you out with innovation projects when you don’t have the internal expertise present or when the required knowledge is hard to find. The downside is that the solutions offered by consultants often have a hard time being implemented because of the not-invented-here syndrome and resistance to external ideas in companies.

Internal Human Capital

A third option is to find the expertise internally. Often the knowledge is present in organizations but is not fully used or still unknown. Facilitating the right processes to do more with your internal expertise is the focus here. The positive side-effect of this approach is that employees feel involved and that solutions show a better cultural fit and have a higher chance to be implemented, but it demands time and effort of your people.

Of course, this is just a short selection of possible innovation strategies. Other options like open innovation or a mixed approach like developing innovation challenges with start-ups are also possible. The most successful organizations don’t choose just one innovation strategy, but a combination, a good mix is therefor crucial.