Strategy by Michael Porter

At the World Innovation Forum, Michael Porter shared his perspectives on what he knows best:

What is strategy? "It's a complete and unique value proposition for a specific set of customers that distinguishes you from your competitors. You need renewed clarity of the fundamental purpose of your company and what makes you different."

What is innovation? "Non-incremental improvements in productivity, in the value chain or the product itself. Incremental improvement is something that can be done in predictable process. Innovation is something where you see a new combination or go in a different direction. The failures of innovation are that you can do something but it is not valuable, or you can do it but it is not affordable."

Is there good innovation and bad innovation? "Corporations have to examine what they do and find out whether they're creating real value with their innovations. Are the innovations we are making practical, and can they be delivered at a reasonable cost? If an innovation fails one of these tests, it is more likely a bad innovation."

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