Strategic Innovation Management (SIM) is the practice of creating a structured and strategic approach to innovation, distinct from traditional business strategy. It involves several key components:

1. Building an Innovation Strategy: Understand the difference between innovation strategy and business strategy. The innovation strategy focuses on creating new value through innovative practices and solutions.

2. Assessing the Current Innovation Situation: Evaluate your current innovation capabilities and identify gaps. This assessment helps in understanding where improvements are needed.

3. Governance and Budget Management: Establish a governance structure for innovation, and manage the budget like a venture capitalist (VC) to fund promising ideas and projects effectively.

4. Knowledge Management: Implement practices to capture, share, and leverage knowledge within the organization, ensuring valuable insights are not lost.

5. Open Innovation: Consider open innovation to collaborate with external partners, bringing in fresh ideas and perspectives.

6. Change Management: Effectively manage change to ensure new innovations are adopted smoothly within the organization.

7. Excellent Project and Venture Management: Deliver innovation through robust project and venture management practices, ensuring that innovative ideas are executed effectively and brought to market successfully.

By integrating these elements, Strategic Innovation Management ensures that innovation is systematic, aligned with the organization’s goals, and capable of driving sustained growth and competitive advantage.