Despite significant investments of time and money, innovation remains a frustrating challenge for many companies. Whether it's mastering the art of constant innovation or holding onto a leadership position, innovation is no easy task for businesses. Iconic giants like Polaroid, Nokia, and Yahoo have fallen. But why is it so difficult to build and maintain an effective innovation capability?

The answer goes beyond commonly cited execution issues. The real obstacle lies in the lack of an innovation strategy. Without a clearly articulated strategy, innovation efforts become fragmented and reactive, preventing companies from achieving sustainable breakthroughs.

Simply put, a strategy is a set of coherent policies or activities designed to achieve a specific competitive goal. Defining a strategy aims to align efforts within the organization, clarify priorities, and ensure resources are directed toward creating sustainable value. While it's common for companies to allocate resources to define their business strategy, it's rare to find strategies that align their innovation efforts with their overall strategy.

Without an innovation strategy, efforts can become a collection of disorganized and disconnected initiatives lacking clear focus and sustainable results. It's common to encounter the “silo problem” in organizations, where each department focuses on its own needs and direct objectives, without having a general perspective. While a variety of perspectives is critical for innovation, the lack of a strategy that integrates and aligns them toward a common goal ends up weakening diversity or, worse, turning it into an obstacle.

An innovation system consists of structured processes that dictate how the organization identifies problems, seeks novel solutions, synthesizes business ideas, designs products, and selects projects for funding. The beauty of an innovation strategy lies in it being a plan tailored to the company's competitive needs; each company is unique, and its strategy should be too.

Corning: Innovation that Transcends

The story of Corning, a leading manufacturer of specialized glass, is a clear example of how a close connection between business strategy and innovation can drive long-term success. With over 160 years of history, Corning has developed a unique ability to reinvent itself through innovation. Over the years, Corning has found ways to be part of some of humanity's most important advancements.

Precisely, what sets Corning apart is its strategic focus on creating "keystone components". These are products that allow other companies to significantly enhance their own offerings. By selling components that are essential to other companies' value chains, Corning secures a permanent place in key sectors such as telecommunications, automotive, and consumer electronics.

A clear example is Gorilla Glass, a glass that has become the standard for smartphone design. It is estimated that approximately 80% of smartphones globally use it, highlighting its importance in the industry. Thanks to its durability and scratch resistance, Gorilla Glass not only improves user experience but also allows mobile device manufacturers to offer more robust and attractive products. Thus, Corning positions itself as a key partner for the success of its clients in the competitive tech market.

Executing this strategy requires Corning to be at the forefront of glass and materials science to solve complex customer problems and discover new applications for their technologies. This involves significant investments in long-term research as well as in manufacturing processes and technology.

What Does Innovation Look Like in SMEs?

While the example of Corning might seem distant, the principles of innovation are applicable to organizations of any size, including small and medium-sized enterprises (SMEs). It's often believed that innovation is reserved for large corporations with million-dollar budgets, but this is not the case. The key is to adapt innovation principles to each business's reality.

1. Focus on Process Innovation

For many SMEs, innovation does not necessarily involve creating entirely new products. Often, the greatest opportunity lies in process innovation, which can improve efficiency, reduce costs, and enhance competitiveness. Investing in digital tools that solve bottlenecks or expedite recurring processes is a viable and effective option for SMEs wanting to remain competitive.

2. Research and Development at Scale

While not all companies have the research and development resources of giants like Corning, it's always possible to dedicate a portion of their resources to experimenting with new ideas. The key is to concentrate these efforts on areas that truly strengthen the value proposition for customers. In this context, digital transformation becomes a fundamental tool, as it allows companies to implement innovative solutions that improve customer experience and meet their needs more effectively, without requiring an exorbitant investment.

3. Innovation Through Collaboration

One of the most accessible strategies for SMEs is to collaborate with technology partners. Just as Corning forms alliances with leading companies like Apple, SMEs can establish relationships with software developers and technology consultants. This collaboration allows them to jointly create innovative solutions that not only transform their daily operations but also enhance their ability to respond to market needs more swiftly and effectively.

The Takeaway

The most important lesson we can learn from Corning is that innovation does not happen by chance; it results from a well-defined strategy aligned with the overall vision of the business. This approach has been key to Corning's success and can serve as a model for organizations of all sizes. By focusing efforts on process innovation, dedicating resources to research and development, and establishing alliances with technology partners, small and medium-sized enterprises can achieve significant results that enhance their competitiveness in the market.

If you wish to implement an innovation strategy that drives growth and sustainability for your business, at MangoByte we offer custom software development services. We're ready to help you identify improvement opportunities and create technological solutions that transform your company. Contact us today to get started!