Read on Twitter
1/ I've been thinking a bit about how #innovation strategy is different from company #strategy and I have a few observations...
Thread
Thread
2/ Innovation strategy isn’t like playing chess, where you can see the entire board laid out before you. It's a game of massively incomplete information.
3/ With innovation strategy, you lack the information needed even to decide your opening moves, because you don’t know what the board looks like or what the rules are. You don’t even know who is playing against you.
4/ Innovation strategy is more like choosing which game to play. There may or may not be games we could be playing that no one is even aware of yet. We don’t know what the prize is in those possible games. We don’t know if they are fair games. We don’t even know if can play.
5/ In incremental innovation, the rules of the game are known. In disruptive innovation, they are generally unknown or undefined.
So innovation strategy is not merely a choice of where to play and how to win, but where to explore, when to launch, and how to hack.
So innovation strategy is not merely a choice of where to play and how to win, but where to explore, when to launch, and how to hack.
6/ Where to explore: Find a blank spot on the map.
Or zoom into a space that no one thought was important enough. The gap between rules in a heavily regulated industry.
Or zoom into a space that no one thought was important enough. The gap between rules in a heavily regulated industry.
7/ When to Launch: Figure out when technology and the market will catch up to your vision.
Blockbuster launched their streaming service in 2004 and did away with their most lucrative business, late fees. But by 2007, the CEO was gone and late fees were back. Netflix jumped.
Blockbuster launched their streaming service in 2004 and did away with their most lucrative business, late fees. But by 2007, the CEO was gone and late fees were back. Netflix jumped.
8/ How to Hack: Find the ambiguity in the rulebook.
Square readers use the headphone jack and not the dataport. Why? Less rules allows for faster iteration.
AirBnB & Uber never let rules stop them!
Square readers use the headphone jack and not the dataport. Why? Less rules allows for faster iteration.
AirBnB & Uber never let rules stop them!
9/ Exploring, launching, and hacking — is all about information. In innovation strategy, it’s all about gaining an information advantage over your opponent.
10/ Thanks to @josh_berry and @tysmith1906 for giving me feedback on an early draft of the full post here: https://kromatic.com/blog/innovation-strategy-where-to-explore-when-to-launch-and-how-to-hack/
