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Innovation Strategy

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The successful organizations combine technological change and the change of business model to create innovation. Furthermore, to effectively incorporate a strong model of innovation in business mentality, the leadership team and the Chief Executive Officer (CEO) need to balance both elements of business and technology innovation. There are six sifters, three in the business model and three in technology innovation. The company needs to include modifications in one or more of these components (Gitman & McDaniel, 2007). Starbucks knows this very well that is why they will be introducing a charging pad that will be placed in their stores nationwide, giving to its clients another reason to select them at the time to decide where to stop for a comfort meal. The pad will enable client to charge their devices while they enjoy their favorite meal; Starbucks will be recognizing this new technology naming it “Duracell Powermat”. It is important to understand that the business model describes how companies create, sell and deliver value to their customers using three key elements that drive innovation.

These elements are: The value proposition – which involve the introduction of a new product or service to market or expand the existing supply (Gitman & McDaniel, 2007). The supply chain – most of the changes on this element are not perceived by the customer. The innovation resulting from this element may arise from changes in the structure in organizations and how to produce and deliver products (Gitman & McDaniel, 2007); and finally Redefining its relationships with complementary vendors and outsourcing companies are other examples of change in the value chain that generates innovation (Gitman & McDaniel, 2007). Another factor that the companies have to analyze is the objective customer.

Changes in this item arise when potential clients are identified, which currently is not being prioritized as to marketing, sales and distribution. Of all the elements it is the least used, but however it can present excellent opportunities for growth. Also, the corporation may use the new technologies. These new technologies are the result of research and development scientists and engineers, and represent a fundamental part of innovation (Gitman & McDaniel, 2007). Thus, “Duracell Powermat” will fulfill this concept to Starbucks, because it will service its regular client and will be an attraction to those who do not visit their stores at all. Technological changes are driving innovation conducted be the following three elements: The products and service offerings,

The technology process, and The support technology
The products and service offerings refers to changes in products or services offered by companies and developments to be launched to the market. These changes have to be quickly identified by the consumer and often are already expected before sale to the public (Gitman & McDaniel, 2007). The technology process is where changes introduced in this element, implies improvement in Starbucks production processes. Also, the provision of services which gives companies competitive advantages in flexibility, distribution costs, including for this reason they are a vital part of an excellent innovation. The support technology does not change the functionality of the process or product but allows companies to execute strategies faster turning this into a competitive advantage; “Duracell Powermat” will not change Starbucks operating process, but will help them stay ahead of its competitors. Thus, this is the main reference information technologies that can improve decision making and financial management (Gitman & McDaniel, 2007).

An effective innovation rest on the mental assimilation of the models and activities related to technology management and business models. The innovations are not made identical. They do not offer the same rewards or carry the similar risks. There are many types of innovation as the incremental, semi-radical and radical innovation (Gitman & McDaniel, 2007), and Starbucks management have this concept very clear, that is why they always thinking in how impact their client by presenting new things that are useful, while experiencing a meal in their stores. In addition to generic innovations the company can identify some that are derived from these. One is the radical innovation substitute, which is the combination of two different semi-radical innovations and the end result can be taken as a radical innovation. Another type is described as disruptive innovation that refers to how a product or service which originally born as something residual or as a simple application without many followers or users.

Soon that product become a leader in the market. The model is the root for develop the innovation strategy and aligned with the overall corporate strategy folder. The responsibility of the Chief Executive Officer is to define the importance of corporate innovation model and technological innovation in the global plan of the corporation. Realize that the direction of the innovation portfolio must come from top management (Gitman & McDaniel, 2007). After the successful accomplishment in their business strategic planning, Starbuck is today the most popular marketer and retailer of premium specialty coffee in the world. Since their creation in the 1985 Starbuck had demonstrate the constant and different innovation strategy. Like others organization Starbuck has implemented to their strategy the use of technology, since then it has been using it as a target to attract client.

An example to this is that in 2001, 95% of the devices in the market did not have the capacity to use Wi-Fi and Starbuck was anticipating this and created a new manner to conduct business in its market, free Wi-Fi in store (Starbucks Newsroom). After this innovation strategy, many other businesses started to use and offer Wi-Fi in their premises. As a conclusion, in today’s life style, technology has become the core of our lives, especially cell phones. People live, walk, exercise and communicate without the interacting with others, but yes with their cell phone. Starbucks has taking advantage to this society behavior and has being introducing technological features to its stores in order to provide a comfort experience to its client. Thus, that is why we echo the following phrase: “Starbuck is transforming the way consumers get power to their phones, in much way it made Wi-Fi a standard amenity in public places” (Starbucks Newsroom).


Gitman, Lawrence J. & McDaniel, Carl, 2007. El futuro de los negocios. Thompson: MĂ©xico
Popular Mechanics (2015). A Year of Good Things: 44 Things to Look Forward to
in 2015. Retrieved from: http://www.popularmechanics.com/technology/gadgets/g15/44-things-to-look-forward-to-in-2015/?slide=21 Starbuck Newsroom, June 11, 2014 Customer Experience. National Rollout of Wireless Charging, by Duracell Powermat, Begins in Starbucks Stores. Retrieved from http://news.starbucks.com/news/national-rollout-of-wireless-charging-by-duracell-powermat-begins-in-starbucks

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