Balanced Scorecard Success: The Kaplan-Norton Collection (4 Books)

C H A P T E R    F I V E

INNOVATION PROCESSES

SUSTAINING COMPETITIVE ADVANTAGE requires that organizations continually innovate to create new products, services, and processes (see Figure 5-1). Successful innovation drives customer acquisition and growth, margin enhancement, and customer loyalty. Without innovation, a company’s value proposition can eventually be imitated, leading to competition solely on price for its now commoditized products and services.

Companies create considerable competitive advantages when they have the capability to bring innovative products—well-matched to targeted customers’ needs and expectations—to the market fast and efficiently. Product innovation is a prerequisite for participation in some dynamic, technologically ...