how it relates to innovation.<\/li><\/ul>\n\n\n\nThere is nothing more concrete than an innovation strategy! Let's start by understanding what strategy is and how it relates to innovation. <\/p>\n\n\n\n
The purpose of the strategy is <\/strong>the increase of the company's profitability in the long run.Profitability can be influenced by factors:<\/p>\n\n\n\n- attributable to the sector\/industry in which a company chooses to compete (corporate strategy); <\/li>
- related to the way a company competes in an industry (business strategy) and generates competitive advantage (outperformance against competitors). <\/li><\/ul>\n\n\n\n
To generate competitive advantage<\/strong>a company's strategy must:<\/p>\n\n\n\n- Be consistent with both theexternal environment<\/strong> of the company, as well as with those of its internal environment (create FIT situation). <\/li>
- Orchestrating the internal resources<\/strong> so as to create value for end-users, thus selling and making profits.<\/li><\/ol>\n\n\n\n
We emphasise the importance of consistency. It is often the case that changes in the environment or the imitation of competitors make desirable goals that are not attainable with internal resources, and it is also the case that internal resources are not optimally utilised to meet the challenges and seize the opportunities offered by the external environment.\u00a0<\/p>\n\n\n\n