Get the balance right! • 4
Service providers need to leverage resources effectively to drive innovation and achieve desired outcomes over time. Smart visualizations of the innovation pipeline and portfolio might help leaders and teams drive fruitful discussions, uncover interconnections, make informed choices, build alignment, and ultimately get the balance right. In the first three blog posts, I expanded the scope of service innovation by unpacking three tensions. Now, I explore alternative ways to visualize the innovation portfolio of a service provider.
Visualizing tension 1 (WHY) and 2 (WHAT)
I have devised a simple three-by-three matrix to show the mix of innovation projects within a service organization or ecosystem. One dimension in the matrix represents value creation (how customers create value), and the other represents value facilitation (how the organization facilitates value creation). In addition, each cell in the matrix represents an opportunity for value co-creation (how customers engage in the production process). See figure 1.
Figure 1. Visualizing the mix of innovation projects within a service organization or ecosystem across the two dimensions value creation and value facilitation.
Each bubble in the matrix represents a specific project in the portfolio. Bubble size (area, not radius) depicts relative project size based on funding, projected return, team size, or development time. Bubble color classifies projects based on strategic importance, development phase, complexity, risk, probability of success, market segment, target audience, team health, or ownership. Connecting lines between bubbles highlight dependencies (and line thickness degree of affinity).
The matrix can also be used to visualize the balance between investments in core/legacy businesses (to unlock value) and investments in new, transformational endeavors (to create new sources of value). See figure 2.
Figure 2. Visualizing the tension or balance between investments in core/legacy businesses and investments in new, disruptive endeavors.
Visualizing tension 3 (WHEN)
The Futures Cone (Voros, 2001) is a common way to depict the range of possible futures for the near future, the intermediate future, and the distant future. See figure 3.
Figure 3. The Futures Cone (slightly adapted from Voros, 2001).
The cone is typically divided into three cross-sections; each plane (in the shape of a circle) is here used to show the distribution of scenarios and projects across the four types of futures for a specific time horizon. All innovation projects should arguably be linked to one or more scenarios. In addition, each plane can show the distribution of scenarios and projects across two or more sectors (geographical territories, market segments, customer groups, solution areas, etc.). See figure 4.
Figure 4. The Futures Cone (adapted from Voros, 2001). The cross-sections are used to show the distribution of scenarios (S1, S2, etc.) and innovation projects (A, B, etc.) across the four types of futures for specific time horizons.
In my next blog post, I will explore alternative ways to visualize uncertainty and risk in the innovation portfolio.
Reference
Voros, J. (2001, December). A primer on futures studies, foresight, and the use of scenarios. Prospect, Foresight Bulletin, 6. Swinburne University of Technology.
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