A strategy is a description of the manner in which a company or enterprise intends to gain a competitive advantage. Strategies describe actions aimed directly at altering the strength of the enterprise relative to that of its competitors. Strategies should allow the enterprise to gain a relative advantage through measures its competitors will find hard to follow and allow the advantage to be extended even further. Strategy development results from the continuous application and interaction of three fundamental thinking skills -- identification of elements and scope, analysis, and synthesis. The basic elements of a strategy for an enterprise are -- the market (comprised of customers, competitors and technology embedded in a milieu of social, political, economic, demographic and scientific driving forces for change), stakeholders, enterprise capability and enterprise capacity. The enterprise capability and capacity are defined by it projects, resources and culture.There are seven basic innovation strategies:
Customer driven
Competition driven
Technology driven
Stakeholder driven
Project driven
Resource driven
Culture driven
In today's environment, it is highly unlikely that anyone of these pure, basic innovation strategies would yield competitive advantage for very long. The opportunities and threats in the market change too rapidly, and the desires of stakeholders are mercurial. Moreover, what will attract and develop the resources of an enterprise today will very likely not be the same next year. What is needed therefore is not the selection and adoption of one of the basic strategies, but a mix of strategies that could and will likely change over a relatively short time period. The innovation strategy of an enterprise must be balanced and dynamic.
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