The Core/Edge Innovation Framework is designed to manage and foster innovation within companies by distinguishing between 'core' (current business operations and technologies) and 'edge' (emerging opportunities and technologies). This framework is used to systematically explore new ideas while maintaining the stability of the core business. It helps in allocating resources effectively, managing risks associated with innovation, and ensuring continuous growth.
Identify and define the core elements of the business that are critical for current success. | Identify potential edge opportunities that could evolve into future revenue streams. | Allocate resources strategically between core and edge initiatives, ensuring stability and innovation. | Implement mechanisms to transfer successful edge initiatives into the core business practices. | Continuously monitor and adjust the balance between core and edge to respond to market changes and internal growth.
Regularly review and adjust the resource allocation between core and edge | Foster a culture that supports experimentation and tolerates failure at the edge | Ensure clear communication and alignment between core and edge teams
Balances short-term performance with long-term innovation | Reduces risk by maintaining core business while exploring new opportunities | Facilitates organizational learning and adaptability
Requires careful resource allocation to avoid neglecting core business | Can be complex to implement and manage | Potential for conflict between core and edge initiatives
When an organization needs to innovate while maintaining current operations | When entering or exploring new markets or technologies
In highly unstable or crisis situations where focus should be on core survival | When the organization lacks resources to manage dual initiatives