Innovation Matrix

The Innovation Matrix is a strategic tool that helps organizations evaluate and balance their efforts between developing new products or services and improving existing ones. It maps innovations based on two dimensions: how new or familiar the market is, and how novel or incremental the product or service is. This creates four categories: incremental improvements (enhancements), adjacent innovations (related expansions), disruptive innovations (completely new ideas disrupting the market), and breakthrough innovations (radically new and groundbreaking). Using this matrix, companies can prioritize projects, allocate resources, and manage risks effectively, ensuring a balanced approach to innovation and growth.