Like living organisms, innovations thrive within communities and struggle to make it on their own. Your innovation portfolio is the final phase of the innovation process. This is where you coordinate development and commercialization for a variety of projects in all three innovation horizons at the same time.
The process of establishing your portfolio strategy is treated in greater detail in Sustainable Growth and Profits: Managing Your Innovation Strategy, Organization and Portfolio. This is Volume 5 of our Complete Guide to Business Innovation.
One of the most significant challenges faced by innovation portfolio managers is sustaining support for Horizon 2 projects. These tend to be treated as though they live in a “strategy’s no-man’s-land” between short-term budgets and long-term focus. Your Horizon 2 innovation projects need extra attention to stay insulated and isolated from core business until they can produce material revenues.
Specifically, your team should enforce original portfolio commitments and block the tendency of resources to migrate across horizon boundaries. Horizon 2 projects are critical to a health portfolio and they require customized processes, metrics and performance targets.
Learn more about how to craft and protect the integrity of your innovation portfolio by contacting Innovation360.