Much has been written on the subject of innovation portfolios. I’ve found that there is a difference between models used in the service sector versus the industrial sector (stating it like an assertion). Innovation portfolios need to be managed over time to ensure optimal leverage of initiatives driven by innovation campaigns.
Innovation projects affect two major areas of the business namely; the offerings presented to the world and the capabilities needed to deliver. An offering is the combination of key elements that include; product and service, actors involved in acquisition and deployment, time of the presentment of the offering, and the location of where the offering is delivered. Capability includes; people and their abilities, talent and genius, processes and practices.
A key challenge is to determine the measures needed to polarize the “new” from “existing”. Existing capabilities, when enhanced, will result in a slight shift in execution capability. But, when capabilities are renewed an entirely new model might be required, that includes challenging the dominant paradigms in the existing organization. Offerings in well established industries shift at a slower rate than those in emerging industries. This shift might require a rethink of the capabilities needed to monetize new ideas.