Marla Capozzi in her Mackinsey article Battle-test your Innovation Strategy talks about a key aspect that we tend to miss while working on our innovations – we ignore the competition. This means we are ignoring the fact that competition is also working on something similar, and when we hit the market we may face their product versus our product and may not know how to react.
While it is very difficult to predict what the competition is doing and what their strategy is, but using the war games, you can try and simulate various scenarios that are possible with competition and this would help you in two ways – Fine tune your strategy for potential scenarios and be better prepared when to handle competition when such scenarios materialize. It is also possible that while you comb through various options, you get new insights about your products or how you position your products in the market.
I think it is a good idea to factor in the potential moves by the competition so come out with more robust innovation products and strategies.