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There is practical value in
understanding the patterns in and the differences between evolutionary
incremental innovation
projects and
revolutionary
radical
innovation projects. This understanding can help you apply right
management practices to different types of innovation projects and make the
course of radical innovation shorter, less sporadic, less expensive, and
less uncertain. |
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Radical innovation should be
followed by a chain of incremental innovations to stay
competitive. →
Example |
Vadim Kotelnikov
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3 Types of
Innovation
>>>
Radical
innovation creates
radical changes in business, capabilities or markets
Platform innovation
enables significant extensions to current business
Derivative
innovation is evolutionary progress or a rapid response to new challenges |
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3 Levels
of Radical Innovations
>>>
① Breakthrough
innovation provides a solution of a pressing problem
②
Disruptive innovation
creates a new big market niche
③ Game-changing
innovation transforms the market and the society →
Example |
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Incremental
versus Radical Innovation
>>> |
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Incremental |
Radical |
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Initiator |
Functional
innovator |
Holistic innovator,
proactive rule-breaker,
venturepreneur |
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Horizon |
Goal |
Vision |
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Business Case |
Detailed business case and plan can be developed at the beginning of the
innovation process |
Business model evolves
through
entrepreneurial simulation games, experimentation, and discovery-based
market learning |
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Key Players |
Formal
cross-functional
innovation teams |
Disruptive innopreneurs,
cross-functional individuals,
synergistic teams |
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Process |
Formal,
phase-gate model |
Informal,
flexible,
jazz-like
improvisation model, especially at early stages due
to
fuzzy front end and high uncertainties |
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Project Leader |
Managerial leader |
Entrepreneurial leader |
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Two Different
Patterns
Incremental innovation has incremental
impact on
growth:
little
ventured, little gained.
High level of uncertainty is a
hallmark a
radical innovation
projects and
Blue-Ocean strategies, especially at early stages. The criteria used to evaluate a
radical idea and concept should differ from those applied to evaluating
incremental innovations and
incremental improvements. Viewing radical ideas – associated with high
uncertainties – from the perspective of the mainstream business and applying
traditional evaluation methods and criteria to them is inappropriate and
counterproductive. Either these methods give a false sense of security, or
they lead to premature rejection of good ideas. "It is easier to say "no" or
to require more detailed information than to defend a decision to invest
resources in the absence of "hard data,"" say researchers from
Harvard Business School, the
authors of
Radical Innovation.
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Innovation Project Management: Two Approaches
Even though the
radical
innovation life cycle includes many of the same sets of activities and
decision points, the reality of managing the process is strikingly different
for radical versus incremental innovation.
Down the road, uncertainties
influence the course of radical project development
that requires flexibility and creativity in resource and competency
acquisition, while incremental projects follow more formal and predictable
route...
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"Economic success comes
not from doing what
others do well, but from
doing what others cannot
do, or cannot do as
well."
~ John Kay |
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Example
GE
"Shun the incremental, and look for the
quantum leap," urged
Jack Welch,
the former legendary CEO of
GE, other
leaders at the company. Live
productivity and
quality,
but also make
surprise moves
‒ shock your rivals.
Shake things up while other look on from the sidelines, sitting idly by
while you knock your competitors for a loop. The three critical ingredients
of the quantum leap are surprise, boldness, and shock...
More
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