📌 Innovation Portfolio Management Summary
Innovation portfolio management is the process of organising, evaluating and guiding a collection of innovation projects or initiatives within an organisation. It helps companies balance risk and reward by ensuring there are a mix of projects, from small improvements to big, transformative ideas. By managing these projects together, organisations can allocate resources wisely, track progress and adjust their approach to meet changing goals or market needs.
🙋🏻♂️ Explain Innovation Portfolio Management Simply
Imagine a school student managing their homework, sports, and hobbies. They need to decide how much time and energy to spend on each, so nothing gets ignored and they still have fun. Innovation portfolio management is like this, but for a company deciding which new ideas to work on and how much to invest in each.
📅 How Can it be used?
A project manager uses innovation portfolio management to choose which new product ideas to fund and monitor, ensuring resources are used effectively.
🗺️ Real World Examples
A global consumer electronics company uses innovation portfolio management to oversee its mix of projects, from improving existing products like smartphones to developing entirely new categories like wearable devices. This helps them spread investment and reduce the risk of relying on a single innovation.
A large bank applies innovation portfolio management to balance digital transformation initiatives, such as launching a mobile banking app, with smaller projects like updating internal processes, ensuring progress on both long-term and short-term goals.
✅ FAQ
What is innovation portfolio management and why is it important?
Innovation portfolio management is about keeping track of all the different innovation projects a company is working on. It helps organisations make sure they are not putting all their eggs in one basket, balancing smaller improvements with big, bold ideas. This way, resources are used wisely and there is a better chance of coming up with something valuable, even if some projects do not work out.
How does innovation portfolio management help a business stay competitive?
By managing a mix of innovation projects, a business can respond more quickly to changes in the market or customer needs. It allows companies to spot which ideas are working and shift their focus or investment as needed. This flexibility helps businesses keep up with competitors and adapt to new opportunities or challenges.
What types of projects are included in an innovation portfolio?
An innovation portfolio usually includes a range of projects, from small tweaks to existing products or processes, to entirely new and ambitious ideas. The aim is to balance safer projects that bring steady improvement with riskier ones that could lead to big breakthroughs. This variety helps ensure that the organisation is always moving forward, both in the short and long term.
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🔗 External Reference Links
Innovation Portfolio Management link
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