An innovation portfolio is a comprehensive set of activities, initiatives, and projects that an organization pursues to drive innovation. It includes both existing projects that are focused on improving current products and services as well as new projects aimed at creating entirely new offerings or entering new markets. An effective innovation portfolio should include the necessary resources needed for success such as funding, personnel, technology, and other assets. The portfolio should also be structured in order to align with organizational goals, objectives, strategies, and priorities in order to ensure it remains focused on driving the desired outcomes.
The goal of an innovation portfolio is twofold: to ensure there are enough resources dedicated towards innovative efforts so the organization can stay competitive; and to ensure these resources are allocated in the most efficient way possible so they yield maximum results while minimizing risk. A successful innovation portfolio should consist of a balance between incremental improvements that help optimize existing products or processes as well as transformational innovations that help create entirely new offerings or enter completely new markets. Furthermore, it’s important for organizations to monitor their portfolios over time to adjust them based on market conditions or changes in strategy in order to remain agile and competitive.
When developing an effective innovation portfolio, organizations must first assess their current situation by evaluating their existing products or services along with market trends in order to identify opportunities for improvement or areas where there may be untapped potential for growth. From here they can prioritize these opportunities into categories such as short-term wins which can be implemented quickly with minimal effort; mid-term investments which require more significant investments but still offer some short-term benefits; long-term bets which involve taking more risks but have the potential for larger payoffs down the road; strategic plays which focus on disrupting competitors; opportunistic plays which take advantage of any sudden changes in the market; defensive plays which protect against emerging threats from competitors; etc.
Once these categories have been identified then organizations can begin allocating resources accordingly towards each category within the framework of their overall strategic objectives such as cost savings, customer satisfaction improvement goals, efficiency optimization targets etc. For example if a company has identified customer satisfaction improvement goals then they may allocate resources towards technologies that enable better user experiences like AI chatbots or augmented reality apps etc., while if cost savings are important then they might invest in automation technologies like robotic process automation (RPA). By having this structured approach organizations can better manage risk while still pursuing innovative solutions that will deliver maximum value over time.
The collection of innovation projects a company is pursuing. It is best practice for a company to maintain projects with different risk profiles and timelines.