70:20:10 Rule Of Innovation

Understanding how to innovate successfully at scale can be challenging for companies. Many firms adopt the 70:20:10 model, which allocates 70% of resources to core activities that are tested and low-risk, 20% to adjacent innovations that explore new markets or capabilities, and 10% to disruptive innovations that create something entirely new. However, it's important to remember that the model is not rigid and can be adapted to fit a company's specific context and risk appetite. Additionally, successful innovation managers will build a balanced portfolio across core, adjacent, and disruptive opportunities and ensure their organizations support a sustainable resource allocation to innovate.