Innovation Strategy
This chapter begins with a analysis of the term strategy and the positioning of innovation strategy as an integral part of a strategic business management with a focus on long-term objectives. First, managers must have a consistent understanding of innova
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Innovation Strategy
4.1
Introduction
A company’s long-term success is dependent on channeling its activities toward suitable strategies. Strategies occur at the corporate level but also relate to specific areas, such as the development and realization of innovations. Success, however, will ultimately only be achieved, if each strategic level of the business are logically and consistently linked to each other in a structured way. This Chapter Will Discuss
• What is a strategy and how are innovation strategy and strategic business management connected? • Which areas does the innovation strategy encompass, how can this strategy be characterised and what approaches to overcoming uncertainty are offered within this context? • How can we breath new life into innovation strategy in a systematic way?
Practical Insight
BASF AG: Strategic Foresight in an International Chemical Concern The BASF company, with its headquaters in Ludwigshafen (Germany), is one of the leading chemical firms in the world that employs more than 110,000 staff, serves customers in almost all countries of the world through a network of approximately 380 production sites and in 2012 had a turnover of $98 billion. Orientation toward the future, as well as long-term thinking are two characteristic elements of the BASF culture which, to a large extent, have their roots in the intensity of assets and capital within the chemical industry, associated with large investment risks, as well as in the long term planning processes, which are necessary for research. (continued) K. Gaubinger et al., Innovation and Product Management, Springer Texts in Business and Economics, DOI 10.1007/978-3-642-54376-0_4, # Springer-Verlag Berlin Heidelberg 2015
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Innovation Strategy
Strategic management has a long tradition with BASF. Founded on decades of experience in strategic trend research and futurology, the strategic foresight process is led by “Strategic Planning & Control” (SPC). This area reports directly to the chief executive. Its primary tasks are to identify longterm profitable business areas, promote synergies throughout the corporation, as well as coordinate and monitor strategy development and implementation. As illustrated below, the SPC area is organized into three staff units (i.e., back office services, information management, and innovation scouting) and three sub-areas (strategies, strategic control, and strategic projects), with approximately 40 staff altogether.
Strategic Planning & Controlling (SPC) Backoffice Services
Innovation Scouting
Information Management Strategic Controlling • Risk & Controlling • Competitive Intelligence • Economic Research
Strategies
Strategic Projects
• Strategy Development
• Foresight Projects • Special Projects
Structure and task fields of the BASF central area “Strategic Planning & Control ”
As part of strategic foresight activities—denoted as “futuring” within BASF—diverse methodological approaches (e.g., middle- and long-term trend monitoring, “wargaming”, scenario analysis, technological foreca
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