The spectrum of business transformation, innovation and development

Strategy Implementation

30 Jul

Written By Frances Lawrence

The Differences

Development

Transformation

Innovation

Core Intent

Expand what already works

Improve how things are done

Reimagine what’s possible

Scope & Remit

Strengthen performance and scale the core

Evolve the core to stay competitive

Create the next core

Mindset

Exploit existing capabilities

Optimize existing capabilities, systems, processes, revenue streams etc.

Explore new frontiers

Primary Focus

Revenue growth, partnerships, market reach

Growth of existing offering through new markets, partnerships, and revenue streams

Operational efficiency, agility, cultural alignment.

Fundamental changes in operations, culture, or structure

New value creation, disruption, future readiness.

Creating new value through novel ideas, products, or processes.

Typical Drivers

Market opportunities, sales targets

Competitive pressure, inefficiencies, digital disruption

Emerging technologies, unmet customer needs, R&D

Aspect

External-facing (customers, partners, markets)

Internal-facing (processes, systems, people)

Can be both internal and external

Time Horizon

Short to medium term

Medium to long term

Variable – often long-term, but can include quick wins

Key Activities

Strategic partnerships, sales enablement, market expansion

Organizational redesign, digital transformation, change management

Ideation, prototyping, experimentation, R&D

Change Type

Incremental – more of the same

Transitional – doing it differently

Radical – doing different things

Appetite for Risk

Low to moderate

Moderate to high

High (but managed through structured experimentation)

Business model fit

Works within the current business model, leveraging existing products, services, and capabilities.

Challenges the current way of working which may reshape the business model

Often upends or replaces the current business model by creating new products, services, or entirely new markets.

Similarities

Strategic in Nature - All three aim to improve the company’s competitive position.
Cross-functional - They require collaboration across departments (e.g., marketing, operations, IT).
Leadership-Driven - Often must be initiated or sponsored by senior leadership.
Risk-Involved - Each involves uncertainty and requires careful planning and execution.

Frances Lawrence