Level One - Innovation Management Proficient

The organization’s innovation strategy is not strong or effective

Level 1 Basic:
The organization has a vague or generic innovation purpose and considers innovation important, but does not link innovation to strategic objectives or customer needs. There is a broad vision, mission, or goal for innovation, but it lacks specificity and measurability. Some alignment and coordination exists among innovation initiatives, but is inconsistent. The organization's focus area for innovation is also vague and lacks substantial value propositions for customers or stakeholders. The organization lacks market understanding and views innovation as a reactive and incremental activity. The organization has a basic innovation pipeline or portfolio that provides some visibility but lacks regular updates, criteria, metrics, and alignment with strategic objectives or customer needs. Innovation is seen as an important but static activity.

1.1. Innovation Intent

1.2. Focus Area

1.3. Portfolio Management

Basic Purpose:

The organization has a vague or generic innovation purpose or reason
Innovation is defined and considered important by the business unit or function, but it is not linked to the strategic objectives or customer needs
There is a broad vision, mission, or goal for innovation, but it is not specific or measurable
There is some alignment or coordination among different innovation initiatives or projects, but they are not consistent or integrated
Innovation is seen as a desirable and expected activity

Basic Focus:

The organization has a vague or generic focus area for innovation, such as increasing revenue, reducing costs, improving quality, etc
However, this focus area does not yield substantial new business opportunities or value propositions for the customers or stakeholders
The organization lacks a deep understanding of the market needs, trends, and opportunities
Innovation is seen as a reactive and incremental activity

Basic Pipeline/Portfolio:

The organization has a basic innovation pipeline or portfolio
All innovation initiatives and projects are in a centralized list that provides some visibility and oversight of the innovation activities and outcomes
However, this list is not updated or reviewed regularly.
It does not include any criteria or metrics to evaluate or prioritize the innovation projects or initiatives
It does not reflect the strategic objectives or customer needs.
Innovation is seen as a static and generic activity

The innovation capacity of this organization is low

Level 1 Basic:
The organization has a vague and underdeveloped process for driving ideas to commercialization. This process encompasses idea generation and market validation but lacks clear documentation, wide adoption, and adequate tools and resources. Some innovation teams consist of cross-functional members and maintain external relationships, but they lack integration and optimization. There is limited alignment and coordination with external entities and stakeholders. The organization possesses a nominal budget and some resources for innovation activities, but they are insufficient, inconsistent, and inequitably allocated. Innovation is viewed as a discretionary activity rather than a priority.

2.1. Process

2.2. People & Partners

2.3. Resources

Basic Process:

The organization has a vague process to drive ideas to commercialization that at the very least includes idea generation and market validation
However, this process is not well-defined or documented. It is not widely adopted or followed by different functions or departments
It is not supported by adequate tools or resources
Innovation is seen as a linear and sequential process

Basic Teaming and Partnering:

Some innovation teams are comprised of cross-functional members and maintain contract relationships with external entities at arm’s length
There is some diversity or complementarity of skills, knowledge, or perspectives in the teams, but they are not well integrated or leveraged
There is some interaction or engagement with external entities or stakeholders, but they are not well aligned or coordinated.
Innovation is seen as a transactional and contractual activity

Basic Resources:

The organization has a nominal budget and some resources for certain innovation activities and projects
However, these resources are not sufficient or adequate to meet the innovation needs or goals. They are not consistent or predictable
They are not allocated or distributed in a transparent or fair way
Innovation is seen as a nice-to-have activity

The organization is not committed to achieving innovation results

Level 1 Basic:
The organization exhibits limited commitment to innovation, with only a few roles and responsibilities dedicated to innovation. These individuals lack authority, influence, and support from leadership. There is a lack of alignment and coordination among different innovation initiatives, resulting in sporadic and ad hoc activities that are not aligned with strategic objectives or customer needs. Innovation is perceived as appealing but not necessary, with scattered small projects driven by individual passion. These projects have great potential but lack sufficient support and resources. The organization has some metrics to measure innovation activities and outputs, but they are not aligned, consistent, or effectively communicated.

3.1. Leadership & Governance

3.2. Culture

3.3. Metrics

Individual Commitment:

Some individuals in the organization are committed to innovation and have some roles and responsibilities related to it
However, they have limited authority, influence, and support from the leadership
There is no alignment or coordination among different innovation initiatives or projects.
The organization has some sporadic and ad hoc innovation activities, but they are not aligned with the strategic objectives or customer needs
Innovation is seen as an extra activity, not a necessity

Individual Culture:

There are a few small innovation projects and teams scattered across the organization
They are driven by individual passion and motivation, but they have limited support and resources from the leadership
They face many barriers and obstacles to implement their ideas or scale their solutions
There is no common language or framework for innovation
Innovation is seen as an extra activity or a hobby

Basic Measurement:

The organization has some metrics to measure innovation activities and outputs, such as the number of ideas generated, the number of projects launched, the number of patents filed, etc
However, these metrics are not aligned with the strategic objectives or customer needs.
They are not consistent or comparable across different functions or departments
They are not communicated or reported to the relevant stakeholders
Innovation is seen as an activity or an output

The organization acknowledges the importance of creating and capturing value

Level 1 Basic:

The organization sporadically recognizes the need to generate fresh value for stakeholders but lacks a unified strategy, often confining efforts to specific departments. Stakeholder engagement remains shallow, with a focus on minor enhancements instead of transformative changes. The organization prioritizes traditional revenue growth over capturing value and occasionally attempts disjointed profitability improvements. Market share and customer loyalty receive sporadic attention, with minimal emphasis on innovative premiums. Overall, the organization acknowledges the concept of value creation but lacks a cohesive, strategic approach to maximize stakeholder value and innovation.

4.1. Create Value

4.2. Capture Value

Modest creation:

The organization sporadically acknowledges the concept of creating new value for stakeholders
Some limited initiatives may be undertaken, but they lack a cohesive strategy and are often isolated within specific departments
Stakeholder engagement is superficial, and efforts are primarily focused on incremental improvements rather than transformative value creation
Innovation is intermittently utilized for value creation

Limited capture:

The organization recognizes the importance of capturing value but focuses primarily on traditional revenue growth
There may be some limited efforts to increase profitability, but they are disjointed and lack a cohesive strategy
Market share and customer loyalty are addressed sporadically, with minimal emphasis on innovation premiums
Innovation is sporadically considered for revenue growth

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