Adjacent innovation, also known as lateral or horizontal innovation, refers to the process of creating new products, services, or processes that are closely related to an organization’s existing capabilities and competencies.
There are several benefits of adjacent innovation:
- Diversification of revenue streams: Adjacent innovation can help organizations expand into new markets and diversify their revenue streams, reducing their dependence on a single product or service.
- Enhanced competitiveness: By developing new products or services that are closely related to their existing offerings, organizations can strengthen their competitive position in the market.
- Improved customer satisfaction: Adjacent innovation can help organizations better meet the evolving needs of their customers, resulting in higher levels of customer satisfaction.
- Increased efficiency: Developing adjacent innovations can help organizations streamline their operations and improve their overall efficiency.
- Reduced risk: Because adjacent innovations build on an organization’s existing capabilities, they often involve less risk than completely new ventures.
- Boosted morale: Innovation can be an exciting and engaging process for employees, and successful adjacent innovations can boost morale and encourage further innovation.
- Improved brand image: By developing innovative products or services, organizations can enhance their brand image and reputation in the marketplace.
- Improved financial performance: By tapping into new markets and revenue streams, organizations can improve their financial performance and achieve long-term growth.
These are just a few of the benefits of adjacent innovation, but there may be others depending on the specific context and goals of the organization.