wealth goes to those who create new business models, create new sources of revenue based onchanging technology, changing demographics and changing global demand.According to Gary Hamel,
“True innovation is based on the recognition that a business concept represents a dozen or so design variables, all of which need to be constantly revisited and constantly challenged”
. Managers have to think creatively & holistically about their entire business concept.Strategic innovation differs from product innovation. Companies today can succeed throughinnovative strategies alone. Southwest Airlines, Dell, IBM, EBay etc. succeeded throughinnovative strategies.Innovations need not be risky, but something that changes customer expectations &competitiveness for the better. Only Innovation creates new wealth. Stock Markets reward onlythose with successful innovation.
Innovation as a Change of Strategy
The change of strategy in a company can bring fruitful benefits to it. Dell can be used as anexample here. Dell was known as just a company who manufactured and sold hardware. During2007, when Dell lost it first position to HP for the first time in a decade, Michael S.Dell had tostep back in as a CEO of the company by replacing Kevin Rollins. He took drastic measuresinside and outside the company to increase profitability. He masterminded the change in entire product range. He started changing the company's image from hardware manufacturer to acompany which sells the entire IT solution. Organizations were struggling with IT complexity.Dell forged a path to simplify IT, by building a low-touch uniform infrastructure spanning thedesktop to the data center. By doing this customer got operational efficiency, manageability and