Innovation Ambition Matrix
Balance your innovation portfolio across core, adjacent, and transformational initiatives
Strategic Innovation Portfolio Management
The Innovation Ambition Matrix helps organizations manage their innovation investments across different levels of ambition to achieve both current performance and future growth.
The 70-20-10 Rule
Core Innovation
Existing products, existing markets
Adjacent
Expand into related markets
Transform
Core Innovation
Incremental improvements to existing products for existing customers
Focus:
Optimize and extend current offerings
Examples:
- Product line extensions
- Feature enhancements
- Cost reductions
- Quality improvements
Key Strategies:
- • Customer feedback integration
- • Continuous improvement
- • Competitive benchmarking
- • Process optimization
Adjacent Innovation
Expand from existing business into "new to the company" business
Focus:
Leverage existing capabilities in new ways
Examples:
- New geographic markets
- New customer segments
- New distribution channels
- Related product categories
Key Strategies:
- • Market expansion
- • Strategic partnerships
- • Capability building
- • Adjacent market analysis
Transformational Innovation
Breakthroughs and inventions for markets that don't yet exist
Focus:
Create new markets and business models
Examples:
- Disruptive technologies
- New business models
- Category creation
- Radical innovations
Key Strategies:
- • Venture investments
- • Innovation labs
- • Startup partnerships
- • Moonshot projects
Implementation Roadmap
Step-by-step guide to implementing the Innovation Ambition Matrix
Audit Current Portfolio
Map all innovation initiatives to the matrix
- List all projects
- Categorize by type
- Calculate resource allocation
Define Target Mix
Set optimal allocation based on strategy
- Assess risk tolerance
- Define growth goals
- Benchmark competitors
Identify Gaps
Compare current vs target portfolio
- Gap analysis
- Opportunity identification
- Risk assessment
Rebalance Portfolio
Adjust resource allocation
- Prioritize initiatives
- Reallocate resources
- Kill or pivot projects
Build Capabilities
Develop skills for each innovation type
- Skills assessment
- Training programs
- Partner ecosystem
Monitor & Adjust
Track performance and rebalance
- Define metrics
- Regular reviews
- Portfolio optimization
Industry Benchmarks
Typical innovation portfolio allocations by industry
| Industry | Core | Adjacent | Transformational | Rationale |
|---|---|---|---|---|
| Technology | 60% | 25% | 15% | Higher risk tolerance and rapid change |
| Consumer Goods | 75% | 20% | 5% | Focus on brand extensions and efficiency |
| Healthcare | 65% | 20% | 15% | Balance of R&D and regulatory requirements |
| Financial Services | 70% | 20% | 10% | Digital transformation and fintech disruption |
Keys to Success
Portfolio Management
- Regular Rebalancing
Review and adjust portfolio quarterly
- Clear Governance
Different processes for each innovation type
- Metrics Alignment
Tailored KPIs for each ambition level
Execution Excellence
- Dedicated Resources
Ring-fence transformational innovation funding
- Talent Management
Match skills to innovation types
- Partner Ecosystem
Leverage external capabilities strategically
Commercify AI-Powered Portfolio Optimization
Our AI analyzes and optimizes your innovation portfolio for maximum impact
Portfolio Analysis & Mapping
- Automated Classification
AI categorizes all initiatives into core, adjacent, or transformational
- Resource Analysis
Track actual vs optimal resource allocation
- Risk Assessment
Evaluate portfolio risk distribution and concentration
- Performance Tracking
Monitor ROI by innovation type and project
Strategic Recommendations
- Opportunity Identification
Discover white spaces and untapped innovation areas
- Rebalancing Suggestions
Optimize portfolio mix based on strategy and market
- Scenario Planning
Model different portfolio configurations and outcomes
- Market Intelligence
Integrate competitive and market trends into portfolio decisions
Why Use the Innovation Ambition Matrix?
Balanced Growth
Optimize risk and return across your innovation portfolio
Resource Clarity
Know exactly where to invest for maximum impact
Future-Ready
Build tomorrow's business while optimizing today's
Ready to Optimize Your Innovation Portfolio?
Use Commercify AI to analyze and balance your innovation initiatives