The Balanced Innovation Portfolio framework is designed to help organizations allocate resources effectively across a mix of incremental, adjacent, and transformational innovation projects. It ensures a balanced approach by categorizing projects based on their risk levels and potential returns, which aids in achieving both short-term gains and long-term growth. This framework is crucial for maintaining competitiveness and fostering sustainable innovation within a company.
Identify and categorize innovation projects into incremental, adjacent, and transformational based on their nature and risk profile. | Assess the current distribution of resources and adjust to ensure a balanced portfolio that aligns with strategic goals. | Implement governance structures to oversee and manage the portfolio, ensuring each category receives adequate attention and resources. | Regularly review and rebalance the portfolio to respond to changing market conditions and internal company dynamics.
Regularly update the innovation strategy to reflect changes in the business environment. | Ensure clear communication and understanding of the framework across all levels of the organization. | Use metrics and KPIs to measure the performance of different types of innovation projects.
Encourages a diversified approach to innovation, reducing reliance on any single type of innovation. | Balances short-term and long-term goals, ensuring sustainable growth. | Enhances risk management by spreading investments across various levels of risk.
Requires significant management oversight and coordination. | Can be complex to implement and maintain across large organizations. | May lead to internal competition for resources between different types of innovation projects.
When an organization needs to revitalize or kick-start its innovation efforts. | When there is a need to balance risk and ensure sustainable growth through innovation.
In very small startups or companies with limited resources that cannot support a diversified portfolio. | When the market or industry is extremely volatile, making long-term innovation planning impractical.