The aggregate expected commercial value of the innovation pipeline is a forward-looking metric that measures the risk-adjusted contribution a company expects from their current innovation initiatives. It can be used both to track how the value trends over time and can be compared to expectations set in the business plan to determine whether you have a prayer of delivering against those expectations.
Final thoughts on Clayton Christensen’s article in the June 2014 edition of the Harvard Business Review, “The Capitalist’s Dilemma”. I encourage you to read it and think about its application in your own organization. The conclusion of the piece calls for renewing the capitalist system to overcome the collective reluctance to invest in market-creating innovation with four suggested solutions:
Last week in our ongoing series of questions that should be asked and answered during innovation portfolio reviews we talked about identifying constraints and bottlenecks that would prevent us from delivering the portfolio. With the constraints identified, we can now work on optimizing the value we can pull through the innovation pipeline.