An innovation strategy is a prerequisite for renewal but not sufficient on its own. Organizations need to play two games simultaneously: "Play-Not-To-Lose" and "Play-To-Win" by applying lessons from chess and poker. A successful innovation strategy utilizes seven principles: grasping innovation; integrating risk-taking; matching innovation to business strategy; balancing creativity and value; establishing innovation frameworks; utilizing internal and external networks; and protecting new initiatives. The strategy must clarify its why, what, how, who, and when.

1. Is an innovation strategy the answer to the demand for renewal? Bengt Järrehult, SCA/LTH No … it is a prerequisite, but it’s not sufficient…

2. The winning games change with time…. The ontologies change with time…. 1980 1990 2000 2010 Known & Ordered Best practice, SOPs Sense – Categorize – Respond Knowable & Complicated Analytical/Reductionistic Sense – Analyze – Respond Unknowable & Complex Pattern recognition/Experimental Probe – Sense – Respond Validity for success Year Inspired by Dr Dave Snowdon Cynefin/IBM, ARK Group Annual Knowledge Management Conference London, 14 Nov 2002

3. Two types of innovation strategies Inspired by ”Making Innovation work”, 2006. Davila, Epstein, Shelton

4. Play both games simultaneously! Inspired by ”Making Innovation work”, 2006. Davila, Epstein, Shelton

5. Play both games simultaneously! Inspired by ”Making Innovation work”, 2006. Davila, Epstein, Shelton Grasping of and commitment to Innovation.

6. Play both games simultaneously! Inspired by ”Making Innovation work”, 2006. Davila, Epstein, Shelton Grasping of and commitment to Innovation. Integration of risk-taking and change into the company culture .

7. Play both games simultaneously! Grasping of and commitment to Innovation. Integration of risk-taking and change into the company culture . Matching the Innovation strategy to the overall Business Strategy . Inspired by ”Making Innovation work”, 2006. Davila, Epstein, Shelton

8. Play both games simultaneously! Inspired by ”Making Innovation work”, 2006. Davila, Epstein, Shelton Grasping of and commitment to Innovation. Integration of risk-taking and change into the company culture . Matching the Innovation strategy to the overall Business Strategy . Securing a balance between creativity and value capture for maximized ROI .

9. Play both games simultaneously! Inspired by ”Making Innovation work”, 2006. Davila, Epstein, Shelton Grasping of and commitment to Innovation. Integration of risk-taking and change into the company culture . Matching the Innovation strategy to the overall Business Strategy . Securing a balance between creativity and value capture for maximized ROI . A well functioning Innovation framework, bringing insights/ideas forward.

10. Play both games simultaneously! Grasping of and commitment to Innovation. Integration of risk-taking and change into the company culture . Matching the Innovation strategy to the overall Business Strategy . Inspired by ”Making Innovation work”, 2006. Davila, Epstein, Shelton Securing a balance between creativity and value capture for maximized ROI . A well functioning Innovation framework, bringing insights/ideas forward. Utilization of Innovation Networks, both internal and external .

11. Play both games simultaneously! Grasping of and commitment to Innovation. Integration of risk-taking and change into the company culture . Matching the Innovation strategy to the overall Business Strategy . Inspired by ”Making Innovation work”, 2006. Davila, Epstein, Shelton Securing a balance between creativity and value capture for maximized ROI . A well functioning Innovation framework, bringing insights/ideas forward. Utilization of Innovation Networks, both internal and external . Protection of new initiatives that are different from the norm .