Innovation Portfolio Management
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With Portfolio Management, you are always on top of ideas and innovation projects. The best mix for delivering business value
Overview of ideas and innovation projects
Smart insights with trends, categories, gantt charts, horizons
Reports, custom graphs and live boards
Key steps to success
Run powerful Innovation missions. Engage people internal and external and make use of gamification elements like rewards and undercover mode.
People add ideas, likes (upvotes), comments, mention other people, tag keywords and share. They are rewarded with Experience Points (XP) and trophies.
Scoring and selecting
People score ideas by liking and commenting. Admins score with score management, interactive graphs, custom fields, or make use of the group decision-making tool.
Leaderboards, rewards and reports
Participants receive scores with every interaction. Admins see leaderboards, generate live reports and intelligent insights to make the best decisions.
See the solution in action
Learn more about Innovation Portfolio Management
An innovation project portfolio is a decision-making forum designed to comply with portfolio goals while adjusting to ever-changing market conditions and project variances.
It aims to establish an optimal resource synthesis for the business to achieve its objectives while taking into account aspects such as:
- Customer expectations
- External market circumstances
- Regulatory constraints
- A competitive environment
Once effectively managed and utilized, an innovation project portfolio brings:
- Improved efficiency and performance in project selection and execution
- Adequate information, evidence, and statistics to empower decision-makers to create data-driven decisions on innovation projects, resources, and activities
- Accessibility of maintained critical project information on an ongoing basis
- Addressed barriers, discrepancies, and inadequacies between strategy and execution
- Projects that strategically align with the business
- Highlighted resources, projects, and activities
There are two primary reasons why managing an innovation project portfolio is vital:
1. Manage and accelerate the progress of innovation projects to the finish line
Businesses must regularly check and evaluate their project portfolio to:
- Implement projects on time
- Manage resources effectively
- Stay within budget
When changes go unnoticed, delays can take place and create an unwanted domino effect, affecting the progress of every other project that follows. As a result, companies may have to undergo different negative situations such as:
- Going over budget
- Failing to meet deadlines
- Occasionally ruining projects and putting them on hold
These scenarios have a substantial impact on company expenditures and efficiency. Thus, project managers must pay particular attention to the onset of these circumstances to effectively set up the measures necessary to avoid them.
2. To properly integrate the organization’s resources and successfully meet its goals
Because portfolio management is the melting place of strategy development, project execution, and significant metrics, the strategic allocation of scarce resources across various projects becomes possible.
In effect, the organization optimizes value, significantly decreases risks, and meets its innovation goals and objectives.
Every company that succeeds in innovation has robust systems to track current efforts and ensure they continue as planned.
Generally, most businesses use stage-gate procedures to examine projects regularly, recalculate their expected ROI in light of altered conditions, and determine if they should be approved. However, such estimates are only as trustworthy as the company’s market expertise.
But, with an innovation funnel or pipeline intended for fundamental innovation, the best ideas emerge among many concepts, and the approach for transformative innovation becomes significantly different.
In innovation, the goal is to take a limited number of potentially game-changing ideas and guarantee that they emerge stronger from the pipeline.
Hence, the organization must invest an adequate amount of time at the earliest parts of the process to explore what is conceivable while continuously increasing the possibilities accessible in search of the best project to implement.
There are several common and effective Product Portfolio Management frameworks. They all have different perspectives on examining organizational product portfolios, so let’s define them individually to understand which framework best fits your business needs.
1. The Ansoff Matrix
Companies use the Ansoff Matrix or the product or market expansion grid to manage and evaluate their growth activities. This framework enables entrepreneurs to:
- Determine the risks associated with organizational growth
- Increase the economic performance of a business
- Consider the hazards associated with every project
The Ansoff Matrix includes four techniques. These include:
Market development involves introducing a company’s product or service to presently unreached or uncatered audiences to expand the business by marketing a business’s existing product and service offerings to a new market category.
Market penetration entails organizational techniques that build dominance in an already established industry. It also includes an assessment of how much a product sells concerning its whole market, known as the market penetration rate.
Diversification means extending the organization’s product and market reach. When used, the corporation diversifies its offerings in its target areas and broadens its commercial opportunities.
Product development ensures a continual stream of innovative products that outperform competitors by directing the development of new products and other tangible competitive advantages to achieve business goals like increased sales and revenue.
2. BCG Growth-Share Matrix
The BCG (Boston Consulting Group) growth-share matrix is a planning tool that:
- Uses graphical representations of an organization’s products and services to guide the management in determining what to invest, sell, or keep.
- Assesses the current value level of their units and product offerings.
This matrix divides products and services into four quadrants, each with its own set of distinguishing characteristics:
Dogs include products with a limited market share and slow growth, implying that they should be reorganized, sold, or dissolved.
Product offerings in this category in the grid’s lower right quadrant indicate that they do not generate much money for the firm due to little to no growth, particularly ideal for disposal.
Products classified as cash cows are in a low-growth zone yet command a sizable market share, warranting that the organization should capitalize on it for as long as feasible.
These products are market leaders in established industries. They produce greater returns than the market growth rate and are sustainable in cash flow. However, after these cash cows have been “milked,” they should be reinvested in the “stars” for high increase and dominance.
Products categorized as stars are in high-growth industries and account for a substantial proportion of that market. Thus these firms should spend more heavily on them. If they retain their market share, they will become a cash cow when the market slows.
Question marks represent products in high-growth markets where the company does not have a significant market share. They frequently grow swiftly while absorbing a large percentage of the organization’s assets.
3. GE/McKinsey’s Portfolio Analysis Matrix
The GE-McKinsey nine-box matrix allows multi-enterprise organizations to:
- Structure their expenditures across company units in an organized manner
- Evaluate business portfolios
- Offer additional implications
- Aid in the prioritization of investments necessary for each business unit
The GE-McKinsey Matrix considers several elements to determine two conditions:
Industry attractiveness refers to a business’s capacity to collect income in the market.
The vertical axis of this facet is divided into three categories: high, medium, and low, denoting the viability, profitability, and desirability of the industry for an organization to create and compete.
In competitive strength, businesses evaluate a specific unit’s performance compared to its industry competitors. Competitive strength is also classified as high, medium, or low based on the company’s competitiveness with its competitors.
4. Innovation Ambition Matrix
The Innovation Ambition Matrix describes a company’s innovation strategies. It works with the idea that the connection between industries and product portfolio creation is necessary for evaluating a company’s innovation goals.
This matrix categorizes the management of a linked, diverse portfolio of innovation endeavours into three categories:
These are incremental innovation projects focusing on line growth, renewal, or improving the performance of existing products.
Adjacent innovations propel the company into new markets while remaining true to its core competencies by gradually introducing new products and assets.
These revolutionary innovations or breakthroughs are not necessarily related to existing markets or technology but are entirely new products or services that are not extensions of the current ones.
The stage-gate method is a system for:
- Assessing the business value of an innovation project at various stages of the innovation lifecycle
- Maintaining control of projects by regularly re-evaluating them and their worth before moving forward
It’s named stage-gate because there are many gates or phases in the funnel where an evaluation occurs to decide whether or not an idea can progress to the next level. The stage-gate approach leads product development through five phases:
Scoping assesses the new concept’s scope, practicality, and market competitiveness to see if it is practical and has a lucrative or valuable market opportunity.
Business case creation
The business case creation transforms the idea into a business scenario designed to establish user or participant demands and standards. To put it another way, the innovation team will create a project strategy and product description.
After the idea has passed the business simulation stage, the team will construct a prototype or a minimal viable product (MVP). Additionally, they will also be developing production and launch strategies.
Testing and validation
At this time, innovation teams perform several tests. First, they test the prototype internally and identify issues and potential solutions. Afterward, they subject the product to customer testing and, subsequently, a validation test to determine its marketability.
Finally, after receiving comments and applying patches, the company will release the product to the public.
Naturally, the innovation team will monitor the manufacture and quality of the product on an ongoing basis. Furthermore, the marketing staff will be in charge of increasing the product’s market visibility.
As a powerful innovation software, Accept Mission can help you manage your innovation project portfolio by making the following tasks easy to implement:
Collecting ideas with a campaign (mission)
Collect ideas, build challenges, or facilitate live collaborations and brainstorming sessions with Accept Mission:
- Advanced and flexible campaign builder
- Gamification with undercover modus and leaderboards
- Live collaboration boards for brainstorming ideas
Upgrading multiple concepts into innovation projects
Manage all ideas in one place. With Accept Mission, you can share your perspectives on different concepts. You can:
- Like ideas directly
Configuring pipelines and funnels for projects
Make robust idea funnels (stage gates), set owners, and automatically follow up ideas based on the quality. You can also manage your idea funnels and automate your stage-gate process today.
After collecting plenty of ideas, you can proceed to score each of them with your preferred standards. Determine the criteria you want to use in Accept Mission’s software and move toward:
- Upvoting with likes and comments
- Implementing innovative business scoring with impact investment scores
- Conducting custom scoring criteria with weighted values
- Using smart algorithms that indicate interesting ideas
Keeping with innovation accountancy
Boost your innovation success by implementing innovation projects smoothly. With Accept Mission, you can:
- Track and boost progress
- Deliver projects faster and better
- Measure innovation success rate
Gantt chart and reports
Share valuable innovation insights and measure your performance directly in the application. Use Accept Mission to create an overview innovation dashboard and other reports and dashboards.
- Include KPIs and graphs in innovation dashboards
- Create live data connection with Teams, Power BI, and many others
- Utilize Kanban boards, bubble charts, Gantt charts, graphs, etc.