Innovation Matrix
Matrix for categorizing and prioritizing innovation projects by novelty and risk.
PURPOSE
Companies frequently face the challenge of evaluating and prioritizing a large number of innovation projects. The Innovation Matrix helps you classify projects by degree of novelty and risk and make informed portfolio decisions. This ensures resources are strategically allocated to the most promising initiatives.
HOW TO USE
Innovation projects are positioned on a two-dimensional matrix, with one axis representing the degree of novelty (incremental to radical) and the other representing risk or uncertainty. Each project is evaluated along both dimensions and placed in one of the resulting quadrants. The distribution of projects across quadrants shows whether the innovation portfolio is balanced.
WHAT IT IS
The Innovation Matrix is a two-dimensional categorization tool for the strategic classification of innovation initiatives. It typically distinguishes between core, adjacent, and transformative innovations. The matrix visualizes the entire innovation portfolio at a glance and supports discussions about strategic priorities.
EXAMPLE
Example: Your pharmaceutical company has twelve different innovation projects running simultaneously — from incremental product improvements to an entirely new active ingredient. You use the Innovation Matrix to classify all projects by degree of novelty and risk into four quadrants and provide the board with a clear prioritization recommendation.