RADICALLY RADICALLY

DISRUPTIVE SUSTAINING

A significant improvement on a
Sales arguments are fundamentally product in an old market with
changed through new innovations roadmapping, & R & D
The Innovation Matrix
Incremental vs. Radical
PRODUCT

The Innovation Matrix simplifies and structures innovation

management and strategy; It urges organizations of any size –
RADICALLY RADICALLY whether a start-up, a corporate, an institute, or social establishment,
DISRUPTIVE SUSTAINING professionals or novices.

Many incremental improvements Constant & steady process that

that eventually lead to a market happens in every business which is
disruption continuous process.

MARKET
Disruptive vs. Sustaining
 Innovation Ambition Matrix

New markets TRANSFORMATIONAL

Developing breakthroughs or inventions
for market yet to exist.

10% Allocation of resource

ADJACENT 70% Return on investment

WHERE TO PLAY

Expanding from existing business into

“new to company” business

20% Allocation of resource

20% Return on investment

CORE
Optimizing existing products that are
for existing customers

70% Allocation of resource

Existing markets

10% Return on investment

Use existing product and assets HOW TO WIN Develop new products & assets
 House of Innovation
STRATEGY Innovation strategy
01
• Vision & strategic focus on innovation
• And implementation of strategy

ORGANIZATION & CULTURE

Organization & culture
02
• Roles & responsibilities for innovation
• Interface & culture for open innovation

INNOVATION PROCESS
LIFECYCLE MANAGEMENT Innovation life cycle process
03
• Idea management
Idea Innovation Continuous
• Product process development
Management development improvement
• Launch & continuous development

Enabling factors
04
ENABLING FACTORS • Project management
• human resource & incentives
• IT and knowledge management

Innovation results
INNOVATION RESULTS 05
• Growth in revenue and profit
• Number of employees
 Market Entry Times

Later Follower

Early Follower
REVENUE

Pioneer:
First to market

DEVELOPMENT GROWTH MATURITY DECREASE

 Three Horizons Model

Ideas provide continuous innovation to a

Horizon 1
Sales

Unknown company’s existing business model and core

capabilities in the short-term.

HORIZON 3

Partially Known
Ideas extend a company’s existing business

Horizon 2
model and core capabilities to new customers,
HORIZON 2
markets, or targets.

Known

HORIZON 1 Is the creation of new capabilities and new

Horizon 2
business to take advantage of or respond to
Time
disruptive opportunities?

Existing business model: New opportunities via New/disruptive

process innovation business model innovation business model

EXECUTE EXECUTE/SEARCH SEARCH

 FUGLE Innovation Process Model

Collect
information Determine
feasibility Exploit
Develop
GATE

GATE

GATE

GATE

GATE

GATE
Innovation Test deploy
Generate Optimize business
Concept prospect portfolio bugle
ideas Develop model
prototype
Capture ideas

EL BUGL
FUNN E

Idea Generation Concept Refine Deployment Develop Refine Exploitation

Identifying opportunities & creating a prospects portfolio Commercialize by developing, deploying & exploiting
 Innovation Metrics

38% 33% 15% 25% 25% 55%

US China US China US China

REVENUE MARKET RETURN ON

GROWTH SHARE INVESTMENT

37% 60% 20%

Global Global Global
 Risk-Attractiveness of Innovation

VERY SMALL SMALL MEDIUM LARGE VERY LARGE

Technology Maturity

Quality Management

Complexity

Market Uncertainties

Competition

Internal Expertise

Know-How

Risk Investment

Resource Availability

AVERAGE = 2
 Concept Screening

CONCEPT A CONCEPT B CONCEPT C CONCEPT D

STEP ONE
Strategic alignment 5 2 5 4
Create the criteria against which the
potential ideas for a new product/service
Market size 3 1 3 3
will be compared.

STEP TWO Market growth forecast 4 3 3 1

Identify alternative concepts or existing

products on the market for the new idea to Wow factor/ concept value 2 4 2 3
be compared.
Technical feasibility 3 2 1 4
STEP THREE
Rate concepts against each other and Manufacturing feasibility 1 5 5 1
tally the results. Have a meeting around
the top ones.
Delivery feasibility 2 1 1 1

STEP FOUR
Competitive advantage 1 2 2 2
Select one or more of the best concepts to
be further developed.
Column Total 21 20 22 19
 Idea Evaluation

NAME / TITLE OF IDEA Consulting process improvement

TYPE OF INNOVATION Radical innovation Improving innovation Routine innovation

Consulting service of supply chain related Quality service within a specific time
DESCRIPTION BENEFITS / ADVANTAGES
problems in the market limit , ensuring low cost

Optimal outcome for both parties and their Unstable business environment and low cost
OBJECTIVES mutual growth in the future
RISKS
outsourcing opportunity

Feasibility of the idea Market potential

Very High High Medium Low Very Low Very High High Medium Low Very Low

Necessary investments Complements strategy

Very High High Medium Low Very Low Very High High Medium Low Very Low

Conclusion Overall evaluation

Potential business idea which is timely for the market Very High High Medium Low Very Low
 Innovation Strategy - Lifecycle

REVENUE

Sa
th
ow

les
gr

de
ue

cli
n
IDEA

ve

ne
Re
TIME

Definition Phase Development Phase Market Preparation Introduction Growth Maturity Decay

MARKET LAUNCH

INNOVATION CYCLE MARKET CYCLE

 Project Planning Gantt Chart

JAN FEB MAR APR MAY JUN JULY AUG SEPT OCT NOV DEC

Affiliate Marketing ISO Certifications 99% SSL Certifies 30%

Email Campaign SSO/SAML 30% V1.3.2 Release 30%

Sponsorship Improve Ticket System 30% Redundancy and Failover 30%

Market Research Validation 30% Value critical success factors 30%

Exhibitions Finance reform 30% Performance procurement 30%

Website Rebuild Managed Information 30% Executive Dashboard 30%

Website Launch Usage metrics 30% 3rd Integration 30%

Discovery Organize focus group 30% Business cycle sensitive analysis 30%

Infrastructure HR planning 30% Automatic HR Planning process 30%

Empower Teams Salesforce Procurement 30% Help Platform 30%

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