It is also very important for many engineers or business owners and managers with a background in natural sciences to understand that one of the most important first steps on the path to innovation is aligning them with corporate vision, understanding the business and financial aspects of ideas, and perhaps most importantly, recognising customer friction.

It is in the fundamental interest of business leaders to understand the importance of innovation, demystify this distant, vague concept and demonstrate its significance,for their own sake and for the benefit of their company’s employees and partners alike. As we pointed out in the previous chapters, it is difficult to imagine the long-term survival and increased competitiveness of businesses, their international expansion and growth without innovation activities. However, the strategy used to implement these developments is important. In other words, business leaders need to clarify what goals they want to achieve and what tools they will use to achieve them.

Businesses that achieve international success devote significant resources to the continuous development of their current product and service portfolio and processes. In addition, they explore new business opportunities with a startup mentality and an experimental spirit. However, this kind of dual operation, or ambidexterity, is not only characteristic of large technology companies, but also of innovative small and medium-sized enterprises. For them, this is actually the basis for survival, as the lifespan of business models in various industries is becoming shorter and shorter, and those who do not develop will inevitably fall behind in the competition. We can also say that some form of innovation activity is vital for every business organisation, whether it is a large, medium, small or micro enterprise. But what type?

Perhaps the most important factor in deciding this is the portfolio approach, as businesses engage in a number of activities to create their products and services. It is not feasible for company management to stake the future of the business on a single card, a single priority development, and expect it to bring about a major turnaround and growth. Similarly, it is not realistic to expect every development project to yield outstanding results. Of course, there are always those who believe that everything they touch turns to gold. The economic reality, however, is that out of dozens of attempts, only one or two may be successful, but unfortunately, it is impossible to determine at the beginning of the process which ones will be successful. Venture capital investors and corporate innovation programme managers are well aware that not every investment has to generate outstanding returns. A small or medium-sized enterprise, for example, may be satisfied with a new business line whose revenue and profits are comparable to its current results. However, the constant challenge is that it is impossible to select the winner in advance. Even the managers of the best-performing Silicon Valley venture capital fund cannot do this! Years of investment experience have shown that you need to invest in at least four development projects if you want to see any return on your invested capital. According to statistics, the return on investment can be between 1 and 5 times the amount invested, and out of a hundred investments, only six (6!) can be expected to yield a return of 5-10 times the amount invested.

The lesson for every company is that a development project portfolio must be built and managed in order to reduce risks. It is necessary to continuously try and invest, otherwise the business risks its current revenues and markets. Fortunately, there are several development options available, but careful consideration must be given to where the company invests its scarce resources or the results it has generated. The same applies to grant funds, whose involvement must also be carefully considered and their use thoroughly planned. For example, the product and service portfolio can be developed to a lesser or greater extent, but it is also conceivable that the organisation will improve the efficiency of its processes or plan to increase its customer base and revenues through developments that change its business model. The focus of developments depends largely on the intentions and risk appetite of the owner(s) and business leaders. The strategy and business concept must be formulated by the founding owner(s) and management; it cannot be imported from outside.

There are many ways to make a business more innovative, competitive and profitable. At the same time, it must be acknowledged that no company is invincible. Alexander Osterwalder, creator of the business model canvas method, and his co-authors argue in their 2020 book The Invincible Company that

"…those that come closest are the ones that constantly reinvent themselves in the face of disruption. These companies manage a portfolio of existing business models that they exploit and continuously improve. Simultaneously, they manage a portfolio of new business models that they explore to systematically produce new growth engines" (Osterwalder et al., 2020, p. 4.).

Building on their experience in developing and redesigning new, innovative business models for large global companies, they recommend that the owner(s) and company management provide clear direction, so-called "strategic guidance" to the organisation in order to develop and maintain a strong portfolio for the company. Strategic guidance consists of the following three elements: