This month a member of the SPS LinkedIn group asked members how they differentiate between business innovation and strategy. The discussion included a variety of interesting responses.
“I would not consider them the same, but would consider business innovation as one of the strategic directions business could take based on the market conditions,” wrote one member. “Strategy needs to encompass more than business growth.”
Agreeing, another member opined that: “Business innovation is the creation, or reinvention of the business.”
A qualification was offered by a member who wrote that “Strategy is the overall direction for your organisation. If your strategy is to create or re-create your business with new product innovations, for instance, then you should use business innovation as part of your strategy.”
Refining the concepts further, another participant wrote: “Both aim to create value. However, in the sense that formulating strategy involves determinate measurement, analysis from the existing environment and then examining future scenarios (prediction-fashion), one should distinguish strategy from innovation. The latter may be launched out of blue with discontinuity with the past.”