ABSTRACT
This chapter provides some support for how organizations can determine which innovation strategy is poised to best support their business. Innovation must be subordinate to the organizational strategy, the Hoshin Kanri. Innovators will have a strong understanding of how the dynamics of the external competitive environment come together with the internal factors of an organization to direct the innovation strategy that is most advantageous for the firm. In addition to the internal factors that a firm must weigh to determine which innovation strategy best supports the goals of an organization, there are several external factors that a business must consider as well. One of the biggest economic factors that dictate the direction of innovation, and therefore innovation strategy, has significantly grown in prominence within the last decade or so. By understanding how different innovation strategies will lead to different outcomes, the organization can shape their product portfolio to capitalize on opportunities while mitigating risk.
