Innovation and Strategic Management Annotated Bibliography

Innovation and Strategic Management Annotated Bibliography

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MGT/411

October 8, 2015

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Innovation and Strategic Management Annotated Bibliography

This paper is based in the innovation and strategic management in business, and the indispensable differentiate between strategic planning versus strategy innovation.

Strategy Innovation versus Strategic Planning

Many corporations have defined processes for carrying out strategic planning - which is essentially learning historic statistics and forecasting anticipated outcomes for the upcoming (Scocco, 2010). It contains producing an appropriate to the existing commercial classic, a procedure placed on the business aiming to exalt the processes previously in position.

Strategy innovation, conversely, produces innovative corporate representations, as it is placed on the marketplace aiming to discovery innovative methods of creating significance through new processes or products. Overall planned organization is a major investigative procedure whereas strategic origination is an inventive unique, and as Henry Mintzberg said “…nobody in the history of the world has ever created a strategy through an analytical process” (Scocco, 2010).

According to Scocco, the differences between strategic planning and innovation can be easily summarized. He say, “Planning is analytical, numbers-driven, company-centric, logic/linear, today to tomorrow, extends current values, and fits the business model. Whereas innovation is creative, insights-driven, market-centric, heuristic/iterative, tomorrow to today, creates new values, and creates a new business model” (Scocco, 2010).

The Difference between Strategy and Innovation

Businesses strategy and innovation are often confused with each other. The author straight required, “last time I checked, strategy and innovation were the same thing, is that not correct?” he described as “just like the one my 2nd grade teacher reserved for the dullards in the class” (Satell, 2012). He claims that the statement is wrong and they are moderately different, demanding much diverse persons, ability groups and methods. The problem is that every business needs both, if they wish to be successful. Strategy and innovation must go hand in hand, completely in sync with and supporting one another.

The author defines strategy “as a coherent and substantiated logic for making one set of choices rather than another.” He is saying that good strategy is has clarity and it never confusing. He goes on to say, that “it involves a lot of fumbling around, chasing wrong ideas down blind alleys, experimenting and trying things out. The trick is that you fail quickly and cheaply, then move onto the next idea. Eventually you’ll get to something that works. If you can survive you can thrive” (Satell, 2012).

The author concludes claiming that “innovation is most important when you get stuck, when you’ve hit a wall and conventional wisdom is no longer so wise. Time tested approaches begin to fail. A new path needs to be forged.” (Satell, 2012).

Time to retire strategic planning and adopt innovation

Towards the end of the business year, strategic planning teams worldwide will gather behind closed doors in an attempt to predict the future – save for the visionary ones who are saying “Enough!” They have realized that doing the same thing over and over again and expecting different results is insane (Hassan, 2010). The author writes that, “Over the years, the strategic planning process has become formulaic, and companies have come to rely too much on what worked in the past. Like 007, they try to recapture the old glory each year, knocking off “strategic” objectives like expendable thugs. In the end, they may succeed in cutting costs by 5 percent, or increasing customer satisfaction by 10 points, but these incremental improvements never amount to the substantial game-changers they were hoping for” (Hasaan, 2010).