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An Innovation Matrix is a way to visualize the different dimensions that exist for creating a new product or service. The matrix can include various variables, but usually two variables are used: Competence (i.e., the ability within the company to come up with and execute an innovation) and Commitment (i.e., how important the innovation is to the organization). Organizations can use this tool to determine what category they fall into and what changes need to be made to ready themselves for innovation.
Description of Innovation Matrix
The two dimensions of the Innovation Matrix create 9 different classifications.
No innovation capacity: This category is comprised of organizations who have neither the commitment for nor the competence to innovate. This typically describes companies who hold a strong position in the market with the products and services they usually offer or those who are struggling.
Thinking about innovation: This category describes organizations who demonstrate a moderate commitment to innovation but are not well positioned in their financial and human capital to do so. Typically innovation is championed by senior management and systems within the company need to be created to promote it.
Talk but no action: This sector of the matrix describes organizations who recognize the importance of innovation but still have no capacity to create it.
Unintentional innovation: Companies in this category do not show any commitment to innovation but offer a new product or service to the market. However, they do not recognize themselves as innovators. Because these innovations were made inadvertently, there is no infrastructure within the company to support it.
Average at everything: This category describes organizations who are moderately committed to creating innovations and have a moderate capacity to do so. This group demonstrates good potential to become leading innovators in the market as they are working to improve their innovative ideas and support systems.
Potential stars: This category describes companies who are highly committed to innovation and have the ability to do so well. This is typically indicative of organizations who are continuing to devote more resources to their innovations and have talent who can generate novel ideas and figure out ways to make them into a reality.
Effortless innovators: The sector of the matrix describes companies who are well-versed in creating innovations. They do not show a strong commitment to innovation by investing too many resources in it because they already have well-functioning systems in place.
Unconscious stars: This category describes companies who are highly competent in their capacity to innovate but moderately committed to the practice. Because they do not devote a large portion of their capital to innovation, employees within these companies are capable of generating and executing many ideas that incrementally improve their products and services rather than revolutionize them.
World class innovators: This category describes companies who are highly committed to and very well-equipped to make the best and most novel products and services on the market.
Praxie's Online Innovation Matrix Tools & Templates
Unlike most traditional Innovation Matrix processes, Praxie’s online Innovation Matrix tools allow any team or organization to instantly begin working with our web templates and input forms. Most Innovation Matrix tools are based on presentations and spreadsheets, though some software exists to create portfolios and other maps of specific products and services across a matrix. Get started with our Innovation Matrix template.
How to use it:
- Enter your organization and any competitors in the boxes to classify them on the Innovation Matrix.
- Create an action plan based on your findings from the Innovation Matrix.
- Consider how you will drive innovation and respond to competitors as they innovate their own products, services, and business models.
- Consider how you will incorporate the matrix into your innovation and strategy processes over time.
Our digital platform goes far beyond other software tools by including progress dashboards, data integration from existing documents or other SaaS software, elegant intuitive designs, and full access on any desktop or mobile device.