When asking global executives, what’s one thing your company needs to improve, we frequently hear this response, “Our ability to derive more value from our companies’ investments in innovation.” Recognizing what type of change is appropriate in your context can help you understand which forms of innovation are likely to yield the greatest impact. For instance, companies with high fit to purpose and relative advantage can use innovation strategies to enhance magnitude—such as leveraging brand power, adopting new technologies to boost operations, unlocking new valve in your partner ecosystem, or acquiring competitors. Companies with a moderate advantage can use innovation strategies to recast its role in the value chain, deliver value at better margins, or acquire capabilities to reinforce its position of advantage. Those with low advantage can adopt strategies that create a new market for its core business or co-create value with upstream or downstream partners. The point is that context matters. Allow us to participate in your assessment of innovation value. Please reach out to me with your questions and concerns.

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