A lot has happened in Open Innovation since Henry Chesbrough coined the term in his 2003 book. The term appears to be well understood, many companies have implemented it and a lot has been published. And yet…….
Recently on the blog
This is the second of two articles, co-written with Ralph-Christian Ohr from Integrative Innovation.
In our previous post, we discussed how Strategic Portfolio Management (SPM) ensures that the content of the portfolio is driven by innovation strategy and associated targets. We would now like to move on to Operational Portfolio Management (OPM), where the portfolio directs resource allocation, metrics and reporting on an operational and tactical level.
This is a two-part article, co-written by Innovation Fixer’s Kevin McFarthing and Ralph-Christian Ohr from Integrative Innovation.
Facing increasingly dynamic and unpredictable environments, firms are required to develop convenient innovation strategies, constantly adapt them to changing conditions and properly implement strategically-aligned initiatives throughout their organizations. Innovation portfolio management (IPM) can act as the pivotal tool to translate strategic objectives and priorities into project-based innovation activities. Furthermore, it provides a framework to convert raw ideas into real investment opportunities, based on their risk profile.
As I’ve written before, the portfolio is the pivotal tool for innovation. It provides the link to corporate strategy; ensures the desired balance across different innovation horizons; enables and communicates priorities; and with the appropriate communication it reports progress towards innovation goals. It is this final point that I would now like to explore.
A question often asked when considering the fit of innovation within corporate strategy is whether you want to be a leader or a follower. Some examples are fairly clear. Most research-driven pharmaceutical companies want to launch the first medicine in its class and to maintain leadership with ongoing clinical support. At the other end of the spectrum it would be highly unusual for a retailer to introduce the first entrant to a new category as a private label.