The Company may find that it has to set priorities on all the innovations it might undertake. To do that, you rank each innovation for its likely economic value to the Company. You then undertake those innovations in order of their economic value and up to the limit of the capacity, the Company has to undertake the innovations.
The objectives of a performance innovation are to increase sales and profits. The Company would especially like to increase the sales and profits it enjoys compared to those of its competition. To the extent that the Company's relative profits are a result of its relative market share, then share becomes the primary standard of measure. Where share has little impact on the Company's profit position; profitability sits as final arbiter on the innovation program. To set priorities, then, the Company evaluates the Company and customer economics of each of its potential innovations. It sets priorities based on these economics and pursues those it has the capacity to undertake.
This section of StrategyStreet covers these issues in the following topics:
Value for the Company and the Customer
Capacity for Innovations