Innovation Portfolio Management

Innovation is key to sustained competitive advantage in a dynamic global marketplace. An organization’s strategy determines what kind of innovation is required based on its customer value proposition. The aim is to establish a balanced innovation portfolio so that, in the event of a disruptive change in the market, the company already goes through a systematic process of creating new innovations, while at the same time maintaining current cash cows and reducing declining business.

The golden ratio for a balanced innovation portfolio can be expressed with the 70/20/10 model. 70 % of a company’s portfolio and budget allocation should, therefore, be aimed at protecting and maintaining the core business. Innovation efforts regarding “new” projects count for around 20 % of the company’s portfolio. 10 % is recommended to be of a transformational character and new to the market.

Challenge

• How to define a company’s strategy in an agile way?
• How to monitor what’s going on in a corporate ecosystem (startups, competitors, trends/ customer needs, technologies, etc.)?
• How to evaluate these developments and create strategies to react?
• How to manage the portfolio of innovation projects and related investments?
• How to get the required capabilities and skill sets into the company?

Solution

The ITONICS innovation and strategy platform can support you in:

• visualizing how different innovation initiatives are supporting the overall business strategies.
• interlinking innovation initiatives with each other or different components of the project execution (emerging trends and technologies, strategic roadmaps, organizational capabilities).