Innovation Portfolio Management is the process of managing a portfolio of initiatives and investments to achieve an organisation’s innovation objectives. It involves assessing each initiative’s potential return on investment (ROI), allocating resources accordingly, and monitoring progress over time.
Innovation portfolio management aims to ensure that resources are allocated to maximise the value generated by the organisation’s innovation efforts. This requires understanding the organisation’s strategy, goals, and objectives; assessing the potential ROI for each initiative; and evaluating the risks associated with each endeavour.
Innovation portfolio management includes:
- Identifying opportunities for innovation.
- Assessing potential ROI.
- Selecting initiatives to pursue.
- Allocating resources across initiatives.
- Tracking progress over time.
- Making adjustments as needed.
It also involves deciding which initiatives should be pursued and which should be abandoned or postponed.
Innovation portfolio management requires a comprehensive view of the organisation’s current capabilities and future needs to identify growth opportunities. It also requires a deep understanding of customer needs and market trends to identify areas where new products or services could be developed or improved. Additionally, it requires knowledge about emerging technologies and their potential applications in industries.
Finally, effective innovation portfolio management requires collaboration between different organisational departments and external partners such as suppliers and customers. This ensures that all stakeholders understand the organisation’s strategy and objectives regarding innovation efforts.