To manage an organization’s innovation portfolio.
- Methodologies: Customers & Marketing, Product Design, Quality
Innovation Ambition Matrix

Innovation Ambition Matrix
- Agile Methodology, Change Management, Innovation, Innovation Strategy, Product Development, Product Lifecycle Management, Project Management, Research and Development, Sustainable Innovation
Objective:
How it’s used:
- A framework that helps companies decide how to allocate resources across different types of innovation projects. It categorizes innovation into three levels: core, adjacent, and transformational, based on the newness of the market and the technology.
Pros
- Provides a clear framework for managing innovation; Helps to balance short-term and long-term innovation goals.
Cons
- Can be difficult to categorize projects accurately; May oversimplify the complexity of innovation.
Categories:
- Ideation, Project Management
Best for:
- Managing an organization's innovation portfolio to ensure a balance between incremental and radical innovation.
The Innovation Ambition Matrix is particularly beneficial during the early stages of product development within industries such as technology, healthcare, consumer goods, and automotive, providing organizations with a structured approach to assess the potential impact and feasibility of various innovation initiatives. This framework guides teams toward strategic investment decisions in areas that range from minor enhancements in existing products, represented by core innovations, to significant breakthroughs that create entirely new market spaces through transformational innovations. Companies often initiate this process during strategic planning sessions involving cross-functional teams, including product managers, engineers, and marketing specialists, ensuring a diversity of viewpoints that enriches the decision-making process. A common application includes reallocating resources from successful core innovations to explore adjacent opportunities that complement existing offerings, thereby facilitating a balanced innovation pipeline. Engaging stakeholders in brainstorming sessions can lead to identifying promising adjacent and transformational projects that align with the organization’s long-term vision. By employing the Innovation Ambition Matrix, organizations can monitor the balance between immediate revenue generation and longer-term growth strategies, thereby fostering a culture that values both incremental improvements and groundbreaking innovations, while also addressing potential market risks and opportunities. Furthermore, this methodology aids in communicating innovation strategies across organizational levels, ensuring that executive leadership, R&D teams, and operational staff align their efforts toward common goals.
Key steps of this methodology
- Identify the innovation opportunities within core, adjacent, and transformational categories.
- Assess current resources and capabilities for each innovation category.
- Determine the desired balance of resource allocation across the three innovation types.
- Define criteria for evaluating potential projects within each category.
- Prioritize projects based on alignment with business strategy and market potential.
- Allocate resources according to the prioritized innovation portfolio.
- Monitor performance and iterate on the strategy as market dynamics change.
Pro Tips
- Incorporate continuous feedback loops from all levels of the organization to refine innovation priorities based on real-time market insights.
- Utilize data analytics and performance metrics specific to each innovation category to guide resource allocation decisions.
- Encourage cross-functional collaboration between core, adjacent, and transformational teams to foster a comprehensive understanding of innovation interdependencies.
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