The purpose of this paper is to develop a diagram flow of strategic decisions of small and medium-sized high-tech enterprises and explains how it can be used to transform an innovate idea into a competitive output to the market. The basis of the proposed model is in co-creating experiences that involve the consumer, it has five steps: 1-Idea generation; 2-Planning; 3-Processing; 4-Output; 5-Market and with thirteen Phases. These enterprises are characterized, by their ability to create value, high skilled workers and use technology in their internal processes. These firms face some problems like weak strategies of IT management and limited human and financial resources. The approach suggested in this paper offers to small and medium-sized IT firms an opportunity to innovate or create newer outputs and increase their competitive. The literature review shows the concepts of the management of technology and innovation. The proposed model for the management of innovation needs active participation of the IT manager and employees. This allows the organization to control the quality of the innovative product/service. The methodological background of this paper is characterized as exploratory and it consisted of data surveying on the international literature available. Additionally, this paper can be used as a guide to building innovation as strategic competitiveness on the small and medium IT sized enterprises, denoted SMET at this paper.