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A structured and formalized approach is needed in order to better understand and manage the process of innovation. This thesis aims to clarify the ideal conditions for creating and maintaining a culture of systematic innovation by developing a strategic framework for digital game development.
Through a review and critique of relevant literature within the field of game development and innovation theory, and an analysis of several interviews conducted with industry professionals, the study finds that innovation, defined as the creation of commercial value through combination of existing elements, is a necessary element in securing the long-term survival of the company.
It furthermore concludes that, in order for systematic innovation to be successfully implemented, the game developer must build an organizational structure centred on knowledge creation, encourage the exploration of potential innovations, and evaluate the innovations based on learning potential and alignment with the company vision.
Additionally, potential innovations must be explored through several phases of learning, where the game developer should mobilize the entire organizational body, several key partners, and lead users of existing products, and discover the target audience through market learning.
In order to drive progress and search for innovative opportunities, senior management must establish an ambiguous and ambitious vision, aimed at fostering change in the industry and market. Middle management must facilitate knowledge creation and dissemination by leveraging the personal knowledge of the employees, who interpret the vision within distributed, self-organizing teams.
Finally, the game developer must aim at balancing the innovative efforts, both exploiting existing revenue streams through incremental, sustaining innovations, and creating future business models and a leadership position by exploring and commercializing radical, disruptive innovations.