Teece’s win-lose innovation model was named after the economist David Teece who created this framework for companies that want to capitalize on their innovations and turn them into their comparative advantage.
Main Benefits of TEECE’S WIN-LOSE INNOVATION MODEL
Teece’s win-lose innovation model helps you:
- Protect your innovation from the imitators
- Turn your innovation into a profit source
- Forecast your innovation’s profitability
Explanation of Teece’s Win-Lose Innovation Model
After a company launches a new product and makes an innovation, there will always be imitators. Innovation without a solid strategy could cause companies to lose their first-mover advantage and give over their profit to their imitators.
Teece-s Win-Lose Innovation model concentrates on three areas for making a profit from innovation:
1) Protect Your Ideas
Patent your innovation and apply for intellectual property rights. In this stage, tacit knowledge and the company’s internal system are essential. Secure your know-how from your competitors.
2) Respond to the market
After the launch of your innovation, competitors will detect the shortfalls of your invention and build upon their product by improving your weaknesses. A good strategy around marketing and distribution channels and a robust feedback mechanism for your product is a must to profit from the innovation.
3)Reaching Scale Quickly
After the launch of your innovation, your company must be ready to satisfy the demand the product captures. You can scale up in house and grow your production internally, outsource from external suppliers or combine these two to fulfill the market demand.
How to Apply Teece’s Win-Lose Innovation Model?
1) Acquire legal rights. Use legal teams that are experts on the subject. See these legal costs as investments in your innovation.
2)Know your weaknesses before your imitator. Use Four Hurdles to Strategy Execution, Tipping Point Leadership, Fair Process, Kotler’s 4Ps of Marketing, The Five Product Levels, Keller’s Brand Equity Pyramid, and Unique Selling Proposition to make the right moves after the launch of your innovation.
3)Respond to the market demand. Use Break-Even Analysis, The ADL Matrix, GE – McKinsey Matrix, and Price Sensitivity Meter to assess the economic feasibility of your innovation and scale up quickly.
Additional Tips and Readings
As an alternative tool for Teece’s Win-Lose Innovation Model, you can also read:
- Diffusion of Innovation to spread your ideas faster
- Five-Step Strategy Model to develop your winning strategy
- The sequence to understand how to apply the Blue Ocean Framework.
Contact us to defend your innovation against imitators with Teece’s Win-Lose Innovation Model.
