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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
~
Vadim
Kotelnikov |
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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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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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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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