Innovation has become a universal feature of corporate life. Almost no company can survive without innovation. However, when it comes to developing innovation strategies, managers often are left alone to decide which innovation types to pursue, how to balance them in an overall portfolio, how to allocate resources, and how to implement them. In short, managers face a variety of innovation dilemmas. One of the most pertinent problems is how to distinguish innovation types in a meaningful way. In this article, we introduce the innovation cube, a tool that helps position innovation types in a managerially meaningful way. Once managers know how to relate and compare their innovation types to those of other companies, the cube helps them to better formulate their innovation strategy.

Citibank Argentina faces a number of questions on how to develop its future strategy in its credit card business. Citibank is the most successful foreign bank in Argentina and is number one in the country's credit card business. To defend its position as leader, Citibank has to maintain its role as driver of the business, since aggressive competition from American Express and others can be expected. However, intensifying competition involves increasing pressure on margins, and the need to tap new (and less secure) market segments to achieve the growth target.