Hey there! As you know, I’ve been highlighting the advantages of a digital roadmap and its advantages. Today, let’s look at its cousin: the innovation roadmap.
Unlike traditional digital roadmaps that focus solely on technological advancements, an innovation roadmap explores not only digital solutions but also non-digital breakthroughs. By incorporating these diverse elements, an innovation roadmap becomes a dynamic tool will propel your business forward.
An innovation roadmap is part of creating a culture of innovation within your team. Within such a culture, employees feel empowered to experiment and take risks, the basis of innovation. They are more likely to come up with novel solutions to current problems and also conceive new products and services for the future. Through technology, they can be close to customers and their ever-changing tastes and demands. By having access to this data, they can adapt your offerings quickly to attract new customers and retain current customers.
On top of that, creating an innovation roadmap indicates that your company is willing to embrace new technologies that align with business objectives. In today’s world, these include artificial intelligence, blockchain, Internet of Things, virtual reality and automation. Yet, we also have to be thinking about future technologies and how they can be leveraged to improve processes and enhance the customer experience. No, not innovation for innovation sake. But rather, embracing the power of technology to reach goals, carry out the business’ vision and whereby fulfil its mission.
Ready to find out more?
In my role as a virtual CIO, I have seen the benefits of an innovation roadmap for my clients. I have classified four main benefits.
- Innovation equals Differentiation. By innovating within your market, you will set yourself apart. In crowded markets, this is especially appealing. Stand out from the crowd.
- Stakeholder Buy-In. By having a concrete plan as to innovation, it is easier to communicate short-term and long-term goals to employees, investors, and management, whereby you are much more likely to gain their commitment to the plan.
- Scaling. An innovation roadmap will allow you to scale even as the market evolves. It provides a reference point for making wise business decisions. And it easily adapts to changing needs and markets.
- Future Integrations. An innovation roadmap helps you choose tools that interact and communicate with each other even as you add new tools in the future. For example, it is often a good idea to implement an entire ecosystem that includes many integrated business tools, such as Microsoft, Google or Zoho to name a few, than selecting individual programs that may not integrate together well, either now or in the future.
Convinced? Then let’s look at the four types of innovations so that you can choose the best pathway to success. These four types are distinguished by whether the technology involved is existing or new and by whether the market is existing or new.
Let’s start with Incremental Innovation. As you can see on the graph, it is appropriate when both the technologies and the markets are existing. In this case, implement small improvements to the current system by adding a new feature, for example. This kind of innovation involves low risk and low investment, but also yields low returns.
Now, let’s explore Disruption Innovation, a buzzword these days. Disruptive innovations innovate by introducing new technologies into an existing market. Examples of disruptive innovations would be those implemented by AirBnB and Uber by introducing mobile applications adapted to a sharing economy in the existing markets of hospitality and taxis. This kind of innovation is costlier and riskier, but the returns can be astronomical.
Architectural Innovation applies existing technologies to a new market. This kind of innovation is especially appropriate when an established company penetrates a new market. The company already has its processes in place and can simply “copy and paste” these processes to the new market. The risk is low, the financial investment is more substantial than for incremental innovation, but the returns are also better, statistically.
And lastly, Radical Innovation. Radical innovation invents new technologies to reach a new, untapped market. Again, it is unwise to embark on such a risky endeavor just because innovation is sexy. Innovation for innovation sake is vain. But if your business can exploit a new market with new technology, this is the way to go as it has the highest possible returns. However, it also entails the most risk and cost.
As we’ve seen, innovation roadmaps are like trusty navigational tools that guide businesses through the maze of possibilities. They help companies chart a course in this ever-changing world by embracing an approach that combines digital and non-digital breakthroughs. By fostering a culture where creativity is celebrated and putting customers at the heart of the innovation journey, organizations can exploit potential and gain a competitive edge. It’s like having a secret weapon that propels you forward while others are left scrambling to catch up.
So, buckle up and get ready to embark on an exciting adventure where innovation paves the way to success. With an innovation roadmap in hand, you’ll be equipped to navigate uncharted waters and steer your business towards a future that’s brighter, bolder, and filled with endless possibilities.
An innovation roadmap guides your organization toward novel ideas, fresh perspectives, and game-changing discoveries.
So, set sail and navigate the seas of innovation – your destination awaits!