Innovation Risk

Innovation Risk

Innovation Risk Jonathan Poland

Innovation is a proactive approach to business and design that aims to make significant improvements, rather than simply making incremental changes. This often requires taking bold, ambitious risks in order to achieve significant improvements or breakthroughs. Innovation is a key component of many successful businesses, as it allows them to stay ahead of the competition and continuously improve their products and services.

Why Manage Innovation Risk?

It is a common misconception that risk taking and risk management are incompatible. In reality, risk takers often rely on risk management strategies to minimize unnecessary risks and maximize the chances of success. For example, extreme sports enthusiasts may use knowledge, preparation, equipment, and training to reduce the risks associated with their activities.

Innovation often requires taking calculated risks, as it involves experimenting with new ideas and venturing into unknown territory. However, effective risk management can help innovation succeed by minimizing unnecessary risks and enabling businesses to focus on intelligent risks that have the potential to drive significant improvements. In this way, risk management can enable innovation to push the boundaries and achieve breakthroughs while minimizing the chances of failure.

Early Phase Innovation

Early phase innovation risk is typically handled by designing experiments to fail quickly, cheaply and safely. At this stage, risk management is a lightweight review of experiments to identify reputational, operational, financial, health & safety and environmental risks.

Late Phase Innovation

Late phase innovation risks typically require the due diligence of a full risk management process of identifying, assessing and treating risks. Common treatments include avoiding, transferring, sharing, mitigating or accepting risk. Innovation risk management often requires careful consideration of the precautionary principle.

Learn More…

Production Jonathan Poland

Production

Production is the process of creating goods or services for the purpose…

Puffery Jonathan Poland

Puffery

Puffery refers to exaggerated or overstated claims in marketing communications. It is…

Direct Marketing Jonathan Poland

Direct Marketing

Direct marketing is a type of marketing that involves communicating directly with…

Salesforce Automation Jonathan Poland

Salesforce Automation

Sales force automation is a type of management tool that helps businesses…

Foot in the Door Jonathan Poland

Foot in the Door

The foot-in-the-door technique is a persuasion strategy that involves asking for a…

Technology Theories Jonathan Poland

Technology Theories

A technology theory is a broad idea that has significant implications for…

Quality Objectives Jonathan Poland

Quality Objectives

Quality objectives are specific, measurable targets that organizations set in order to…

Security Controls Jonathan Poland

Security Controls

IT security controls are measures that are implemented in order to reduce…

Contingency Planning Jonathan Poland

Contingency Planning

Contingency planning is a risk management strategy that involves developing alternative plans…

Jonathan Poland © 2023

Search the Database

Over 1,000 posts on topics ranging from strategy to operations, innovation to finance, technology to risk and much more…

Lifetime Customer Value Jonathan Poland

Lifetime Customer Value

Lifetime customer value (LCV) is a measure of the total value that…

Market Intelligence Jonathan Poland

Market Intelligence

Market intelligence refers to the process of gathering, analyzing, and disseminating information…

Salesforce Automation Jonathan Poland

Salesforce Automation

Sales force automation is a type of management tool that helps businesses…

Team Strategy Jonathan Poland

Team Strategy

A team strategy is a plan that outlines how a team will…

Waste is Food Jonathan Poland

Waste is Food

The concept of “waste is food” is based on the idea that an industrial economy should not produce any waste except for biological nutrients that can be safely returned to the environment.

Dismissing Employees Jonathan Poland

Dismissing Employees

Letting go (aka firing) employees is a difficult and sensitive task, and…

Product Features Jonathan Poland

Product Features

A product feature is a characteristic or aspect of a product that…

Time To Market Jonathan Poland

Time To Market

Time to market is an important metric for businesses because it can…

Thought Process Jonathan Poland

Thought Process

Thought is the mental process of perceiving, organizing, and interpreting information. It…