This chapter addresses the establishment of dynamic capabilities for strategic innovation in traditional industrial companies to meet the challenges in dynamic environments. Measures are described to systematically design the innovation strategy process, including the definition of innovation objectives (Scoping), the management of the innovation portfolio (Configuring), and the identification of new innovation potentials (Sensing). Central is a structured innovation management system, supported by processes, structures, and culture. This enables the development and prioritization of innovation projects to ensure the strategic value contribution to the long-term adaptation and renewal of the company.