Choosing where to innovate

The business decision network exposes all the decisions creating value for the business, making it easy to see where innovation might create or enhance value for the business. Types of innovation are identified by the type of decision being made. For example, a target market decision would be the source of market innovation opportunities. Similarly, a brand strategy decision would lead to brand innovation opportunities.


The innovation frameworks above focus on different elements already included in the decision framework

• Category lifecycle points toward which decisions in the business strategy are likely to generate value for a product or service category.

• Industry patterns suggests decision groups that might generate new value in a given industry.

• Impact or scope suggests the potential change impact innovative decisions can have on the business. Innovation in strategic decisions will have greater impact, while changes lower in the network are more likely to generate incremental value. In either case, the decision framework enables an evaluation of potential impact, including positive or negative changes to current markets, profits, or competition.

• Internal or external focus is a consequence of which strategic decisions are considered when innovating. For instance, choice of a strategic partner would imply an external focus.

• Innovation measurement is enabled by the decision network where outcomes can be traced to the sources of innovation, the decisions that created new or sustained value.

When using a decision network as an innovation framework, each decision provides the basis for creating ideas focused on a real business problem, making each idea a potential innovation.

Choosing where to innovate

Finding new opportunities to innovate and create value is often a routine expectation of research and development. However, the types of innovation exposed in the frameworks above suggest multiple sources for innovation across the business, function, organization, or industry.

Ultimately, value is created in the decisions made for the business. A decision framework provides the complete environment for innovation. It simultaneously identifies the type of innovation, along with the context to evaluate the potential value, impact and scope needed to make an effective investment choice.

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