Innovation isn’t just about the here and now; it’s a strategic endeavor, stretching across the present moment and extending far into the future. For organizations seeking a comprehensive approach to innovation, understanding the concept of innovation horizons—or idea horizons—is crucial. These horizons help leaders envision the continuum of innovation, from immediate enhancements to visionary future breakthroughs. Let’s delve deep into this framework and explore how it can shape innovation challenges effectively.
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The Three Innovation Horizons
The innovation horizons model breaks down innovation into three distinct horizons based on the time frame and nature of the expected outcomes:
- Horizon 1 (H1) – Core Innovations: These are improvements to your existing business model, products, or services. They focus on optimizing current operations and delivering incremental enhancements. The results are typically realized in the short term.
- Horizon 2 (H2) – Adjacent Innovations: This horizon seeks to expand current businesses into new areas. It involves taking existing capabilities into new markets or developing new capabilities for current markets. The outcomes are expected in the medium term.
- Horizon 3 (H3) – Transformational Innovations: This is the realm of groundbreaking, disruptive ideas. It’s about creating entirely new offerings or venturing into new markets that the organization hasn’t tapped into before. These innovations shape the future, and the results are realized in the long term.
Why are Innovation Horizons Crucial?
Balancing Act: Innovation isn’t a one-size-fits-all approach. By categorizing innovations into horizons, organizations can maintain a balanced innovation portfolio, ensuring immediate growth while paving the way for future success.
Resource Allocation: Different horizons demand varied resources. H1 might focus more on optimizing current processes, while H3 would require significant R&D investments. Knowing where an idea fits ensures that resources are effectively allocated.
Setting Expectations: Clarity on the innovation horizon can help manage stakeholder expectations regarding the potential risks, returns, and time frames involved.
Crafting Innovation Challenges for the Right Horizon
In the vast ocean of organizational innovation, it’s not enough to merely have a ship—you need a compass to guide your journey. The “innovation horizons” serve as this compass, illuminating the path from immediate incremental enhancements to groundbreaking, future-defining disruptions. Yet, understanding these horizons is just the starting point. To truly harness their potential, organizations must adopt a structured approach that aligns ideas with the right horizon, sets clear expectations, and fosters a conducive environment for innovation. Here, we delve into the key steps to effectively navigate and leverage the innovation horizons.
1. Define Clear Objectives
Understand what you aim to achieve. If you’re looking for quick optimizations, focus on H1. If you’re preparing for the future, target H3.
Purpose: Before initiating any innovation challenge or soliciting ideas, it’s fundamental to know your purpose. Why are you seeking innovation, and what do you hope to achieve?
Differentiating Between Horizons:
- Horizon 1 (H1): This horizon caters to immediate needs. If your primary objective is to enhance current processes, products, or services for quick wins, your focus should be here. These might include streamlining operational efficiencies, tweaking existing product features, or improving user experiences in the short term.
- Horizon 3 (H3): If you’re looking to future-proof your organization and are open to exploring uncharted territories, H3 should be your playground. Here, you’re less concerned about immediate feasibility and more interested in ideas that could redefine your industry or open new markets in the long run.
2. Communicate Expectations
Ensure participants know which horizon they’re innovating for. This sets the tone for the kind of ideas you’re seeking.
Clarifying the Horizon: Participants should not be left guessing. They need clarity on the horizon they are being asked to innovate within. This not only ensures that ideas align with the organization’s objectives but also helps innovators tailor their proposals accordingly.
Setting the Innovation Tone: By communicating whether you’re looking for incremental changes or disruptive concepts, participants can approach the challenge with a specific mindset, which in turn yields more targeted and relevant ideas.
3. Tailor Evaluation Criteria
For H1, criteria might lean heavily on feasibility and immediate impact. For H3, the vision and potential to disrupt become paramount.
Criteria for Horizon 1 (H1):
- Feasibility: Given the immediate nature of H1, ideas should be actionable with the current capabilities and resources.
- Immediate Impact: Since H1 innovations target short-term gains, ideas should present clear benefits that can be realized quickly.
Criteria for Horizon 3 (H3):
- Vision: Here, the focus shifts from the present to the potential future. How does the idea fit into a future scenario? Does it present a compelling vision for what’s ahead?
- Disruption Potential: The emphasis for H3 ideas is on their ability to significantly change existing norms. This could mean redefining customer experiences, creating entirely new markets, or rendering current solutions obsolete.
4. Feedback Mechanisms
Given that H3 ideas might not be immediately actionable, it’s essential to provide constructive feedback, keeping innovators engaged and motivated. As these ideas may not fit into the current landscape, providing feedback can be tricky. These ideas might seem outlandish or unfeasible at present.
Constructive Feedback: It’s essential to approach H3 ideas with an open mind. Instead of dismissing them outright, provide feedback that helps the innovator refine their vision or identify potential roadblocks.
Engagement and Motivation: Timely and constructive feedback ensures that participants remain engaged. Recognizing their efforts and the value of their ideas, even if not immediately actionable, can foster a culture of continuous innovation and encourage them to participate in future challenges.
In sum, these components serve as a roadmap for orchestrating effective innovation challenges. By defining objectives, communicating expectations, tailoring evaluation criteria, and providing robust feedback, organizations can harness the power of their collective intellect to drive meaningful innovation across all horizons.
Sailing Towards the Horizon
The journey of innovation isn’t a linear path but a broad spectrum, where today’s core innovations lay the foundation for tomorrow’s disruptions. By understanding and leveraging innovation horizons, organizations can strategically position themselves across this continuum, ensuring growth, relevance, and long-term success.
For innovation managers and strategists: It’s time to gaze into the horizons. Where does your organization stand, and where do you aim to be? Remember, the future isn’t just about arriving; it’s about preparing for the journey ahead.