The organization has an advanced innovation strategy
Level 3 Advanced: The organization demonstrates a compelling innovation purpose that is effectively communicated throughout the organization and beyond. There is a shared vision and ambitious goals for innovation, fostering commitment and engagement from stakeholders. The organization has focus areas for innovation, leveraging its capabilities and partnerships, with a customer-centric approach aligned with strategic objectives. Their advanced innovation pipeline is dynamic, adapting to market conditions and investment needs, with clear criteria and metrics for evaluation and prioritization. Efficient processes and tools are in place to manage and monitor the innovation pipeline, optimizing its outcomes. Innovation is seen as a strategic and dynamic activity that drives growth.
Advanced Purpose:
The organization has a compelling and inspiring innovation purpose or reason
The link between innovation and business strategy is clearly communicated across and beyond the organization
There is a shared vision, mission, and goal for innovation that are ambitious and challenging
There is a strong degree of commitment and engagement among different stakeholders, such as employees, customers, partners, etc., who support and contribute to the innovation efforts
Innovation is seen as a meaningful and motivational activity
Advanced Focus:
The organization has focus areas that leverage both its capabilities and partners and its understanding of the customer value proposition, to win significant new business opportunities in the future
These focus areas are based on extensive market research and validation, and they are aligned with the strategic objectives and customer needs
The organization has a high degree of clarity and alignment on the innovation objectives and priorities
Innovation is seen as a strategic and customer-centric activity
Advanced Pipeline/Portfolio:
The organization has an advanced innovation pipeline or portfolio
The innovation projects or initiatives are time-sequenced and are proactively slowed down or accelerated to shifting market conditions and investments to meet growth targets
The organization has clear and transparent criteria and metrics to evaluate and prioritize the innovation projects or initiatives, based on their potential value and risk
The organization has efficient and effective processes and tools to manage and monitor the innovation pipeline or portfolio, such as stage-gate models, agile methods, dashboards, etc
Innovation is seen as a dynamic and optimized activity
The organization has a high innovation capacity
Level 3 Advanced: The organization has a structured innovation process that embraces open innovation and co-creation, allowing for the inclusion of external insights and ideas. This process incorporates feedback loops and continuous learning to enhance the quality and relevance of solutions. Innovation is viewed as a collaborative and adaptive endeavor. Innovation teams have strong networks and use social media and other platforms to connect with internal and external experts, freely sharing information and seeking diverse input. The organization possesses a formal budget and a comprehensive inventory of tangible and intangible resources, effectively managed and optimized to maximize innovation potential and impact. Innovation is regarded as a value-adding activity.
Advanced Process:
The organization has a structured innovation process that also sources insights and ideas from customers, suppliers, partners, and other external sources beyond the organization
This process leverages open innovation and co-creation methods to tap into the collective intelligence and creativity of the ecosystem
This process also incorporates feedback and learning loops to improve the quality and relevance of the ideas and solutions
Innovation is seen as a collaborative and adaptive process
Advanced Teaming and Partnering:
Innovation teams have strong, fluid networks to informally access new competences, resources, and assets
They use social media and other platforms to connect and communicate with internal and external experts, influencers, and communities
They share information and knowledge freely and openly
They seek feedback and input from diverse sources
Innovation is seen as a networked and social activity
Advanced Resources:
The organization has a formal budget and an inventory of tangible and intangible resources from across the organization for innovation
These resources include equipment, lab spaces, trade secrets, licenses, customer lists, relational assets, etc
These resources are well documented and managed
They are leveraged and optimized to maximize the innovation potential and impact
Innovation is seen as a value-adding activity
The organization is committed to achieving innovation results
Level 3 Advanced: The organization has established a formal innovation team with dedicated resources and autonomy, fostering a customer-centric approach. Employees collaborate across functions, utilizing agile methods to generate and implement solutions. The organization employs advanced tools and techniques to measure and improve innovation performance. Reward and recognition mechanisms based on innovation metrics are in place, motivating employees and driving a culture of systematic and disciplined innovation. Innovation is viewed as both a process and a behavior that delivers value to customers and stakeholders.
Dedicated Innovation Team:
The leadership has established a formal innovation team comprised by individuals from different business areas and fields of expertise
The team has a dedicated budget, resources, and autonomy to pursue innovation opportunities and challenges
The team works closely with internal and external stakeholders to identify customer needs, generate ideas, test solutions, and implement innovations
The team uses advanced tools and techniques to measure and improve innovation performance and impact
Innovation is seen as a systematic and disciplined process that delivers value to customers and stakeholders
Entrepreneurial Culture:
Employees take advantage of the time and space allocated to innovation and collaborate across functions
They are empowered and accountable to pursue innovation opportunities and challenges
They use customer-centric and agile methods to generate, test, and implement solutions
They measure and improve their innovation performance and impact
Innovation is seen as a systematic and disciplined process that delivers value to customers and stakeholders
Advanced Measurement:
The organization acknowledges individuals who deliver innovation activities, outputs, and results through some reward and recognition mechanisms, such as bonuses, promotions, awards, recognition events, etc
These mechanisms are based on the innovation metrics and indicators
They are fair and transparent
They motivate and inspire employees to innovate more and better
Innovation is seen as a behavior or a competency
The organization is deeply committed to stakeholder value creation and capture
Level 3 Advanced:
The organization is deeply committed to stakeholder value creation, demonstrated by a comprehensive and proactive approach. Stakeholder feedback is systematically gathered and informs decision-making. Value creation extends beyond products or services to enhance the overall stakeholder experience. The organization actively pursues multi-dimensional value capture, viewing it as a dynamic, innovative process. Rather than relying solely on traditional methods, they explore novel business models to drive revenue growth, profitability, market share, and customer loyalty. This holistic strategy prioritizes innovation and adaptability, ensuring ongoing value creation and capture across various dimensions of stakeholder engagement and financial success.
Advanced Creation:
The organization's commitment to creating new value for stakeholders is evident in its comprehensive and proactive approach
Stakeholder feedback and insights are systematically gathered and integrated into decision-making processes
Value creation efforts extend beyond product or service improvements to encompass broader changes that enhance the stakeholder experience
Innovation is seen as an integrated force driving value creation
Advanced Capture:
The organization actively pursues strategies to capture value across multiple dimensions
Value capture is seen as a dynamic process that requires continuous adaptation and innovation
Revenue growth is not solely pursued through traditional means; the organization finds new ways and business models to increase profitability, market share, and customer loyalty
Innovation is embraced as a dynamic catalyst mastering value capture