11/12/2024
Harnessing the Innovation Radar Framework to Drive Customer-Centric Innovation
Christophe Martinot
Innovation is not just about creating the next big product or launching cutting-edge technology. It’s about finding new ways to deliver value to customers—whether through better experiences, enhanced products, or more efficient processes. Recently, while helping a team brainstorm how to stay ahead of customer needs, we turned to a proven tool: the Innovation Radar framework.
First introduced by Mohanbir Sawhney, Robert C. Wolcott, and Inigo Arroniz in their MIT Sloan Management Review article, the Innovation Radar expands the scope of innovation. It identifies 12 key dimensions where companies can innovate to create meaningful value for their customers and themselves.
What Is the Innovation Radar?
The Innovation Radar is a framework that encourages businesses to look beyond traditional product development to explore new opportunities for value creation. It organizes innovation efforts across four dimensions:
1. What You Offer (Offerings): Innovations related to products and services.
2. Who You Serve (Customers): Innovations focused on understanding and engaging with customers.
3. How You Deliver (Processes): Innovations in internal systems, operations, and value delivery.
4. How You Interact (Presence): Innovations in market channels, brand perception, and partnerships.
These dimensions are further broken down into 12 areas that help companies pinpoint where they can innovate to deliver maximum impact.
The 12 Dimensions of Innovation
Here’s a detailed look at the radar’s 12 dimensions, with examples of how organizations can leverage them to create new value:
1. Offerings (What You Offer):
• Product Performance: Improving the functionality, quality, or features of an existing product.
Example: Tesla continuously enhances its electric vehicles with new software updates that improve range and performance.
• Product System: Creating complementary products that work together as a cohesive system.
Example: Microsoft Office offers a suite of integrated tools that enhance productivity.
2. Customers (Who You Serve):
• Customer Experience: Enhancing how customers interact with your product or service.
Example: Starbucks redesigned its stores and introduced mobile ordering to improve customer convenience.
• Customer Segments: Targeting new or underserved customer groups.
Example: Airbnb expanded its offerings to cater to business travelers, a previously overlooked market.
3. Processes (How You Deliver):
• Value Capture: Innovating pricing or revenue models to maximize profitability.
Example: Adobe transitioned from selling software licenses to a subscription-based model for its Creative Cloud suite.
• Processes: Improving internal workflows or operational efficiency.
Example: Zara’s fast-fashion model relies on efficient supply chain management to bring new designs to market quickly.
• Organization: Changing structures, roles, or incentives to support innovation.
Example: Spotify’s use of small, autonomous “squads” fosters faster decision-making and innovation.
4. Presence (How You Interact):
• Channel: Exploring new ways to reach customers.
Example: Peloton shifted from physical retail stores to direct-to-consumer online sales.
• Brand: Enhancing trust and reputation to increase customer loyalty.
Example: Patagonia’s focus on sustainability strengthens its brand appeal to eco-conscious consumers.
• Network: Building partnerships or alliances to improve offerings.
Example: Apple’s collaboration with healthcare organizations to expand the capabilities of its Health app.
5. Platform (Spanning Multiple Areas):
• Business Model: Reinventing how value is created and delivered.
Example: Netflix disrupted traditional media by transitioning from DVD rentals to a streaming platform.
How to Use the Innovation Radar
The Innovation Radar is a practical tool that helps organizations systematically identify and pursue new value creation opportunities. Here’s how to make the most of it:
1. Map Your Current Innovation Portfolio
Start by mapping where your current innovation efforts fall within the 12 dimensions. Are they concentrated in one area, such as product performance, while others, like customer experience or channels, are overlooked?
2. Identify Gaps and Opportunities
Use the radar to identify areas where you could provide new value to customers. For example, if your business excels at creating products but lacks strong customer engagement, it may be time to invest in improving the customer experience.
3. Align Innovation with Strategic Goals
Innovation should support your organization’s strategic objectives. Use the radar to prioritize dimensions that align with your business goals and customer needs.
4. Test and Validate Ideas
Once you’ve identified opportunities, test your ideas in small, low-risk ways. Collect feedback to validate whether these innovations deliver the value you envisioned.
5. Continuously Monitor and Evolve
Innovation is a journey, not a destination. Regularly revisit the radar to assess progress, adapt to market changes, and identify emerging opportunities.
Why the Innovation Radar Matters
Many organizations fall into the trap of focusing too narrowly on product innovation, missing other dimensions where value can be created. The Innovation Radar broadens the scope, enabling businesses to find new ways to delight customers, improve operations, and outpace competitors.
As Sawhney, Wolcott, and Arroniz emphasize in their MIT Sloan Management Review article, sustainable growth depends on mastering multiple dimensions of innovation. By systematically exploring these dimensions, companies can uncover untapped opportunities and build a robust innovation strategy.
Key Takeaways
The Innovation Radar provides a clear and actionable framework to think about innovation comprehensively. By exploring all 12 dimensions, businesses can move beyond isolated efforts to create sustained, customer-focused value.
Ready to explore new ways to innovate? Start by mapping your efforts onto the radar and discovering where the greatest opportunities for value creation lie.
Ready to drive innovation that matters? Start by mapping your current efforts to the Innovation Radar and aligning them with Agile principles. Want to Go Deeper? If this article resonates with you, let’s continue the conversation. Reach out to explore how you can unlock your full potential as a leader and promote innovation in your team or organisation. Contact us!
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