The Innovation Capability Assessment examines the innovation strategy present in the firm according to the framework developed by Booz & Company and published in The Global Innovation 1000: How the Top Innovators Keep Winning. This framework defines 3 different approaches to innovation:
- NEED SEEKERS – actively and directly engage current and potential customers to shape new products and services based on superior end-user understanding and strive to be the first to market with those offerings.
- MARKET READERS – watch their customers and competitors carefully, focusing largely on creating value through incremental change and by capitalizing on proven market trends.
- TECHNOLOGY DRIVERS – follow the direction suggested by their technological capabilities, leveraging their investment in research and development to drive both breakthrough innovation and incremental change, often seeking to solve the unarticulated needs of their customers via new technology.
All three strategies share a set of core critical capabilities, while each of the three strategies also have a distinct set of critical capabilities associated with it. The Innovation Capability Assessment examines alignment of the innovation strategy present in the firm with core capabilities and business strategy.