Innovation management

How foresight for future markets and products leads to new business segments

The all-dominant question that arises for decision makers is: How could it be possible to combine a desired future with my prospective future business activities. It is for this particular reason, scenarios are being used in innovation management and business development. In order to take the multifaceted innovation perspectives into consideration - and consequently not stick to traditional methods such as market research - ScMI AG has developed a "four-quadrant model" combining innovations on market, business and product level.

The company’s strategy provides the initial point of innovation management or business development. It positions the "strategic framework" that the company aims to implement in the future. This framework includes the target areas for products and markets and serves as basis for all activities in the following three areas:

• Market development and market innovations (lower left quadrant): in order to estimate the demand it is firstly necessary to identify the future market potentials. This can be achieved by means of scenarios for the market environment, which could be created directly from the strategic process or could be generated specifically for the innovation process. In the latter case, clients or external innovators have to be incorporated in the scenario development. The future market segments are identified with the help of Scenario management and consequently assessed in the light of the future developments as well as the market environment scenarios. The final results are the future potentials of the particular market segments.
• Product development and product innovations (upper right quadrant): in order to estimate the supply it is needful to identify and assess the future market service potentials by means of Scenario management - taking into account the strategies chosen by the company. Thus, this can lead to future market potentials. At this point there is a connection to the technology management as the market service potentials are being used in order to assess possible product and process technologies.
• Business development and business innovations (lower right quadrant): the combination of the evaluated market and market service potentials - namely the specific link of supply and demand sides - leads us to the future business segments. These could be strategic segments of the company or new business segments, which present a strategic development perspective.