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1.6 Ambition and Innovation Portfolio Management - Coggle Diagram
1.6
Ambition and Innovation Portfolio Management
Innovation Ambition
Where to innovate?
How to implement innovation in practice?
Innovation could happen at any time, at any function of the business
Link innovation approaches to business assets
Innovation Portfolio
Diversification reduce the risk of an investment portfolio and strike a balance of risk and reward
A range of innovation opportunities form the portfolio of innovation
Comprise of a collection of innovation approaches
Challenging Radical approaches
Simple Incremental approaches
Factors for diversity of portfolio
Industry
Technological companies focus on transformational
Consumer goods manufacturers focus on core
Competitive position
Company stage of development
The goal is to find the balance to achieve the best possible ROI
Innovation Ambition Matrix "Approaches"
(Innovation Management Tool)
Enhancements of
Core
Innovation
Optimizing existing products / services for existing customers
Pursuit of
Adjacent
Innovation
Expanding from existing business
Transformational
Innovation
Developing breakthroughs and inventing things for markets that don't yet exist
Innovation Management Key factors
Talent
Different ambition levels require different skills
Integration
Organizing, managing and linking skills and functions within the firm
Funding
Core and adjacent innovations do not need major funding, but transformational innovations do
Pipeline Management
Project management model comprising of stages and gates (Stage-gate process)
Future sales predictions and management
For transformational innovations, this approach is lethal and dangerous
Transformational innovations require non-linear process with potential alternatives
Metrics
Financial metrics are appropriate to informatively measure core and adjacent innovations
Non-economic and internal metrics are suitable for transformational in its early stages and them hard economics in later stages
Total innovation
Managing a portfolio of innovations
Ambition level set up
Development of a shared motivation for innovation to grow and create competitive advantage
Determine current innovation landscape (If any)