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There is practical value in
understanding the patterns in
and the differences between
evolutionary incremental
innovation projects and
revolutionary
radical innovation projects.
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If
you create something unseen
before,
prepare to
address challenges
unmet earlier |
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This understanding can help you
apply right management practices
to different types of innovation
projects and make the course of
radical innovation shorter, less
sporadic, less expensive, and
less uncertain.
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Incremental
vs. Radical Innovation
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Incremental |
Radical |
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Initiator |
Functional
innovator |
Holistic innovator,
proactive rule-breaker,
venturepreneur |
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Horizon |
Goal |
Vision |
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Business Case |
Detailed business case and plan can be developed at the beginning of the
innovation process |
Business model evolves
through
entrepreneurial simulation games, experimentation, and discovery-based
market learning |
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Key Players |
Formal
cross-functional
innovation teams |
Disruptive innopreneurs,
cross-functional individuals,
synergistic teams |
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Process |
Formal,
phase-gate model |
Informal,
flexible,
jazz-like
improvisation model, especially at early stages due
to
fuzzy front end and high uncertainties |
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Project Leader |
Managerial leader |
Entrepreneurial leader |
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Evaluating Radical Ideas
Innovation leaders must both
stimulate radical idea
generation and
select the most promising
ones for implementation.
The criteria used to evaluate a
radical idea and concept should differ from those applied to evaluating
incremental innovations and
incremental improvements.
Viewing radical ideas – associated with high
uncertainties – from the perspective of the mainstream business and applying
traditional evaluation methods and criteria to them is inappropriate and
counterproductive.
Either these methods give a false sense of security, or
they lead to premature rejection of good ideas.
"It is easier to say "no" or
to require more detailed information than to defend a decision to invest
resources in the absence of "hard data,"" say researchers from
Harvard Business School, the
authors of
Radical Innovation.
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Balanced Innovation Portfolio |
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3 Types of
Innovation
Radical
innovation creates
radical changes in business, capabilities or markets
Platform innovation
enables significant extensions to current business
Derivative
innovation is evolutionary progress or a rapid response to new challenges |
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3 Levels
of Radical Innovations
① Breakthrough
innovation provides a solution of a pressing problem
②
Disruptive innovation
creates a new big market niche
③ Game-changing
innovation transforms the market and the society →
Example |
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Innovation Project Management: Two Approaches
Even though the
radical
innovation life cycle includes many of the same sets of activities and
decision points, the reality of managing the process is strikingly different
for radical versus incremental innovation.
Down the road, uncertainties
influence the course of radical project development
that requires flexibility and creativity in resource and competency
acquisition, while incremental projects follow more formal and predictable
route...
More
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"Economic success comes
not from doing what
others do well, but from
doing what others cannot
do, or cannot do as
well."
~ John Kay |
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