An innovation matrix is a tool that visualizes how to innovate based on your business goals. It helps identify new areas for innovation and simplifies managing innovation efforts, making it ideal for startups and enterprises alike. Often a starting point for innovation programs, it encourages using Design Thinking techniques to develop strategies.
The matrix framework varies but typically focuses on four key areas: breakthrough innovation, sustaining innovation, basic research, and disruptive innovation. These will be explored further in the template.
Benefits of Using an Innovation Matrix
The innovation matrix not only helps businesses and entrepreneurs create their innovation strategy but also provides additional advantages:
- Identify areas for improvement in your current business model and processes.
- Map out new products and innovation opportunities.
- Enhance existing products to stay competitive.
- Discover revolutionary breakthroughs in new areas of the business.
- Better allocate resources to growth-driving initiatives.
It also helps teams streamline efforts by outlining key growth areas, ensuring a coordinated and efficient innovation process.
Create an Innovation Matrix
FigJam’s visual workspace makes it simple to create and share an innovation matrix. Follow these steps to get started using the Innovation Matrix Template:
Step 1: Ideation Process
Begin by identifying growth areas in your business and brainstorming new ideas. Ask yourself: is there a particular area to focus on? Use this as a foundation to develop ideas, laying out everything to start building your roadmap to innovation.
Step 2: Categorize Ideas
Now that you’ve defined your focus areas, categorize your ideas into four sections of the matrix: breakthrough innovation, sustaining innovation, basic research, and disruptive innovation. Place each idea where it fits best. For example, groundbreaking ideas unique to your industry go under disruptive innovation.
Step 3: Review the Matrix
Examine the full matrix to determine which ideas offer the most potential for growth. Identify quick wins (typically found in the bottom half) and longer-term opportunities that may require more resources but deliver significant impact.
Step 4: Build an Innovation Strategy
Use insights from the matrix to develop a detailed innovation strategy. Define your goals, metrics, and actions, and outline how this innovation will drive business improvements.
Example of an Effective Innovation Matrix
For many businesses, relying on a single product isn’t sustainable. Take Amazon, for example—they offer both an online retail service and Amazon Prime, their streaming platform. Let's use a similar example for product development in an innovation matrix:
- Breakthrough innovation (Top left corner)
Expanding the existing product line with new features to meet evolving customer needs.
- Sustaining innovation (Top right corner):
Introducing a new product that challenges competitors and fills a gap in the market.
- Basic research (Bottom left corner):
Small, quick improvements to the current product line, adding more value for customers.
- Disruptive innovation (Bottom right corner):
Launching a completely new product that reshapes the industry or creates an entirely new market.
This high-level example illustrates product development in an innovation matrix. You can further detail specific products, launch strategies, and quick wins tailored to your business.
