📌 Innovation Portfolio Management Summary
Innovation portfolio management is the process of organising, evaluating and overseeing a collection of innovation projects or initiatives within an organisation. It helps ensure that resources are used wisely, risks are balanced and projects align with business goals. By managing an innovation portfolio, companies can track progress, adjust priorities and make informed decisions about which ideas to pursue, pause or stop.
🙋🏻♂️ Explain Innovation Portfolio Management Simply
Imagine you have a box of seeds, but only a limited amount of soil and water. You need to decide which seeds to plant, which ones to set aside and how much care to give each one. Innovation portfolio management is like being a gardener who chooses which ideas to grow into full projects and which to wait on, so that the garden is healthy and successful.
📅 How Can it be used?
A project team can use innovation portfolio management to select the best mix of ideas to develop based on available resources and strategic goals.
🗺️ Real World Examples
A large healthcare company uses innovation portfolio management to evaluate hundreds of new medical device ideas submitted by employees. By scoring each idea against strategic criteria and available resources, the company focuses on a balanced set of projects, including both incremental improvements and more radical innovations, increasing the chances of bringing successful new products to market.
A consumer electronics firm manages its innovation portfolio by tracking all ongoing research and development projects in a central system. This allows leaders to see which projects are at risk, reallocate funds to the most promising ideas and ensure their teams are not duplicating efforts across different product lines.
✅ FAQ
What is innovation portfolio management and why is it important?
Innovation portfolio management is about organising and supervising a group of innovation projects within a company. It helps ensure that time, money and people are used wisely, while also making sure the projects fit with the companys goals. This approach allows businesses to balance new ideas with practical planning, so they can make better decisions about which projects to continue, change or stop.
How does innovation portfolio management help a business succeed?
By keeping an eye on all innovation projects at once, companies can spot which ideas are working and which need more attention. This means resources are not wasted on projects that are unlikely to succeed. It also helps leaders adjust priorities quickly, so the business can respond to changes and stay competitive.
Can small companies use innovation portfolio management or is it just for big organisations?
Innovation portfolio management is useful for companies of any size. Even small businesses can benefit from keeping track of their new ideas and making sure efforts are focused where they matter most. It helps everyone understand what is being worked on and makes it easier to choose the best projects to support the companys growth.
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🔗 External Reference Links
Innovation Portfolio Management link
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