Chapter 2

Integrated strategic planning for innovation

Role high level leadership

A leader must be able to plan and then to empower other people to implement the plans he/she
previously develop.
An organization must be led by someone who develops and aligns the organization with the mission
and vision, develops, and maintains trust, ensures that coordinating and communicating occur, and
encourages creativity and learning.

The task of generating fresh ideas, indentifying new opportunities, and being responsive to changing
conditions in order to achieve that strategy.

1. Foundations of venture strategic planning.

Venture strategic planning is the beginning of all development efforts.

Venture strategic can be organized in product, market or process and can be categorized is
evolutionary or revolutionary.

Product Market Process

Cost reduction Penetration Cost reduction
Repositioning Enlargement Enlargement
Evolutionary Modification Modification Modification
Consolidation Consolidation Consolidation
Imitation
Differentiation Segmentation Focused
Completely new
Diversification Completely new platform
Revolutionary platform
Breakthrough
Platform

2. Assessment of current and past ventures

Identify types and times of ventures

Identify which failed/succeeded and why?
Determine new products survival rate, revenue and profit performance.
Assess new product ventures performance against objectives to determine success rates.
Determine causes of success/failure.

3. Analysis of corporate strategy.

Corporate strategy

Growth vs. retrenchment.

Aggressive vs. conservative.
Time of market entrance/exit.
Low cost vs. differentiation.
4. Conduct external analysis.

Competitor analysis

Analyze market and industry (competition analysis).

Features opportunities and needs (trend analysis).

5. Conduct internal analysis.

Meant to measure/analyze strengths in marketing, engineering production, etc.

Capability to develop is divided 3 phases:

a. Marketing capability (need of customers).

b. Assess talent engineering.
c. Evaluate overall capability (indentify distinct competencies).

6. Develop, evaluate and select.

Methodology suggest:

a. Develop an IVM (Integrated Venture Map), which must identify stages of past/current
ventures/strategies.
b. SWOT using internal and external analysis.
c. Should be led by a team of prepared professionals.

Developing an IVM.

Product, market, processes. (past)

PMP (current)
PMP (future)

IVM should lay out type and timing of future ventures.

Area of focus: What? Where?

Type: evolutionary or revolutionary.
Timing: When?
Relationships: How?

Document the Integrated Development Strategy

IVM
Executive summary
Venture summaries.

Structure of a venture summary:

Background.
Area of focus.
Product (market for process)
Cost-objectives.
Type of ventures.
Estimated time and cost of development.

Implementing IV Strategy.

Develop the aggregate venture plan.

Contains portfolio of venture resources and portfolio of ventures.

Portfolio of ventures: record of each venture.
Portfolio of ventures resources: resources the company has for ventures.

Both should be aligned, congruent, must match.