Innovation

& Strategy
Formulation
MODULE 7
Gospel Reading
A reading from the gospel according to Luke 21:5-11

5 When some were talking about the Temple, remarking how it was adorned with fine stonework and votive offerings, he said,

6 'All these things you are staring at now -- the time will come when not a single stone will be left on another; everything will be destroyed.'

7 And they put to him this question, 'Master,' they said, 'when will this happen, then, and what sign will there be that it is about to take place?'

8 But he said, 'Take care not to be deceived, because many will come using my name and saying, "I am the one" and "The time is near at hand." Refuse to join them.

9 And when you hear of wars and revolutions, do not be terrified, for this is something that must happen first, but the end will not come at once.'

10 Then he said to them, 'Nation will fight against nation, and kingdom against kingdom.

11 There will be great earthquakes and plagues and famines in various places; there will be terrifying events and great signs from heaven.

The word of the Lord.

Module Learning Objectives
1. Evaluate management practices and Illustrate Economies of scale

2. Understand drivers of innovation

3. Understand the Innovation Process

Module Overview
As the students complete their strategy formulation backed by internal SWOT analysis, micro and
macro environment scanning, this module will prepare and brief them on things to consider when
translating strategy into innovation.
Part 1: Quick review on
Technology Scanning &
Economies of Scale
Technology Scanning

The technological scanning must warn and

“Consists of all the techniques aimed at
alert any person in charge of a change, a
systematically organizing the collection,
novelty or an innovation, whether technical or
analysis and dissemination of technical
scientific. As soon as it can modify the
information useful for the safeguarding and
landscape or make loss/gain an economic
growth of companies” – Steven C
advantage, the watch becomes critical and
Wheelwright
must intervene as soon as possible. 

Technology Scanning
Course Outline Stages of Technology Scanning Basis of Technological Watch PAGE 6
3 Stages of Technology Watch

1. Acquisition of information:
2. Transmission & 3. Synthesis of the collected
awareness, detection & access
storage: internal management information
to sources

3 Stages of Technology Watch

Technology Scanning Basis of Technological Watch PAGE 7
Basis of Technological Watch
Benchmark:
This analysis consists in identifying potential competitors, evaluating their products and analyzing their strategies and development poles so that they cannot
take them by surprise. 

Technological:
Evaluates current leading technologies by analyzing their conditions of access, their growth rates and their potential for future progress.

Strategy:
Evaluates the company’s strategy and each of its sectors/departments. Based on an in-depth analytical study of competitors’ strategies, it identifies companies
acting with comparable strategies or methods

Product:
Inquire about potential future products in their added value and function.

Basis of Technological Watch PAGE 8

Technology Scanning 3 Stages of Technology Watch
Economies of Scale
A. Cost Savings that a company (and, by default, its customers) can reap as a result of efficient
production processes

B. Getting the most of out of fixed costs and by doing so results in competitive price

C. Achieved under a mature learning curve

Implication:

Existing big players in the industry may leverage on their economies of scale to deter new

entrants because they can already offer very competitive prices

Part 2: Drivers & Challenges to
Innovation
Challenges to Innovation
 Not realizing the Innovation Imperative
 Challenged in Innovating
Part 3: The Innovation Process
INNOVATION PROCESS
• Define the Innovation Intent
• Establish the Opportunity Insights
• Identify potential Fields-of-Play
• Develop the Business Concept
• Present the Business Case
1. Define the Innovation Intent
• Give innovation a reason
• What is the burning platform?
• What is the Opportunity?
Idea Fragment (vs Innovation)
• No details in terms of operationalization
• Not ready for investment
2. Establish Opportunity Insights
3. Identify the potential
(and prioritize) Fields of Play
4. Develop the Business Concept
4. Develop
(con’t) the Business Concept
5. Present the Business Case

• Executive Summary
• Detailed Business Concept
• Define the Market
• Business Model plus Market Size
• Identify Risk and Mitigation
Thank you!