Category Archives: Kevin McFarthing

Innovation Risk & Return: Horizons, Uncertainty and the Teddy Bear Principle

I’ve had a couple of interesting conversations recently focused on the strategic view of innovation using the 3 Horizons framework originally proposed by McKinsey, and the assessment of risk and return from innovation. The 3 Horizons approach can be used to manage different areas of future business concurrently, albeit with different managerial approaches given the different requirements and characteristics. It can give a view of how innovation and other business-building activity such as M&A could extend a company’s reach into new sectors (Figure 1).  It can provide a time horizon to business growth in new and existing areas. It can give a perspective on the potential for new technology platforms and new markets (Figure 2). Figure 1 – Three Horizons (Source: http://steveblank.com/2015/06/26/lean-innovation-management-making-corporate-innovation-work/) – See more here via @Ralph_Ohr Figure 2 – a 3 Horizons matrix defined by knowledge of market and technology (adapted from @TimKastelle). Simplistically, all you need to … Continue reading

Innovation Risk & Return: Horizons, Uncertainty and the Teddy Bear Principle

I’ve had a couple of interesting conversations recently focused on the strategic view of innovation using the 3 Horizons framework originally proposed by McKinsey, and the assessment of risk and return from innovation. The 3 Horizons approach can be used to manage different areas of future business concurrently, albeit with different managerial approaches given the different requirements and characteristics. It can give a view of how innovation and other business-building activity such as M&A could extend a company’s reach into new sectors (Figure 1).  It can provide a time horizon to business growth in new and existing areas. It can give a perspective on the potential for new technology platforms and new markets (Figure 2). Figure 1 – Three Horizons (Source: http://steveblank.com/2015/06/26/lean-innovation-management-making-corporate-innovation-work/) – See more here via @Ralph_Ohr Figure 2 – a 3 Horizons matrix defined by knowledge of market and technology (adapted from @TimKastelle). Simplistically, all you need to … Continue reading