Strategic management helps companies to innovate their processes and products. Strategy allows organizations to determine the best configuration of systems, processes, products, and resources to reach their objectives. Once a company has chosen its strategy it has to implement it. To implement their strategies companies can use Project Portfolio Management. In fact, they can use PPM to identify projects and portfolios that best align with their objectives.
Here are the steps to determine the strategic orientation:
- Analysis
- Selection
- Implementation
Analysis
Strategic analysis starts from exploring the innovation space by identifying where innovation can take place and if it is worth doing so. Usually, it is useful to analyze markets, technologies, emerging customer needs, political trends, competitors, and social and economic indicators. It is also important to consider the resources the organization can use and their strengths and weaknesses.
Selection
There are different approaches to project selection. Companies can use Project Portfolio Management (PPM) in order to identify projects and portfolios that best align with their objectives. Project Portfolio Management (PPM) helps to select innovation projects which aim to convert an idea into an innovation, and can include every step of the process, starting with idea generation and moving on to idea realisation. Innovation projects develop or improve products, processes and services.
Implementation
Once organizations have decided what they could do and what will be done, they have to develop and implement the strategy. In fact, companies need to analyze the resources, like roadblocks, partnerships and the steps to implementation. It is in the best interest of the organization and management to be aware of the potential factors that oppose strategy implementation.
Keep in mind
A successful innovation plan requires a strategic orientation. In fact, companies should know which work and functions need to be made in which market. Selecting innovation projects requires much consideration to be taken on the internal and external factors.
