Innovation is the lifeblood of any successful business. It’s what propels companies forward, enabling them to adapt to changing markets, customer needs, and technologies. However, simply having great ideas is not enough. Implementing and executing those ideas strategically is equally vital.
In this article, we’ll explore the key aspects of implementing new ideas effectively within your company, drawing inspiration from the 3 Horizons Model and the 70/20/10 rule.
The Importance of Strategy in Innovation
Before diving into the specifics of implementing new ideas, it’s crucial to emphasize the role of strategy. Businesses with well-defined strategies are more likely to succeed in their innovation endeavours.
Those who proactively plan for innovation are three times more likely to report success. Aligning innovation with your company’s overall strategy increases the likelihood of success by 38%. It’s clear that innovation should not be a random endeavour but rather a strategic one.
The 3 Horizons Model
The 3 Horizons Model is a powerful tool that can help businesses manage innovation strategically. It divides innovation efforts into three horizons:
Horizon I: Maintain and Defend Core Operations
This horizon focuses on the current core business operations. It’s about optimizing existing processes and products to maintain competitiveness.
Horizon II: Nurture Emerging Opportunities
In this horizon, businesses explore emerging opportunities and technologies. It involves innovation in areas that are not the core focus yet but show potential for growth.
Horizon III: Pioneering the Future
Horizon III is all about venturing into uncharted territories, pioneering new markets and technologies. It represents the long-term vision and the creation of entirely new business models.
Understanding and balancing these three horizons is essential for long-term success. However, it’s not enough to have a conceptual understanding. You need a practical approach to execute these ideas effectively.
The 70/20/10 Rule
The 70/20/10 rule is a tool that helps you allocate resources and efforts across the three horizons:
Horizon I: 70% of Efforts
The majority of your resources should be dedicated to maintaining and improving your core business operations. This ensures stability and sustainability.
Horizon II: 20% of Efforts
Allocate a significant portion of your resources to nurturing emerging opportunities. This keeps you adaptable and competitive in the mid-term.
Horizon III: 10% of Efforts
While it may seem small, dedicating resources to pioneering the future is essential. This is where breakthrough innovations happen, driving long-term growth.
By adhering to the 70/20/10 rule, you can strike a balance between short-term stability and long-term innovation, helping your business thrive in a rapidly changing environment.
Implementing New Ideas with the 70/20/10 Rule
Now that we understand the importance of strategy, the 3 Horizons Model, and the 70/20/10 rule, let’s discuss how to implement new ideas within your company practically:
Horizon I – Maintain and Defend Core Operations
- Focus on improving existing products and processes.
- Allocate resources for quality content, continued education, and rigorous testing.
- Invest in technologies that streamline core operations.
Horizon II – Nurture Emerging Opportunities
- Enhance workflows to adapt to new opportunities efficiently.
- Update messaging to align with emerging markets and technologies.
- Foster partnerships with emerging players in your industry.
Horizon III – Pioneering the Future
- Foster cross-pollination and collaboration to generate groundbreaking ideas.
- Explore new platforms and technologies that can shape the future of your industry.
- Invest in research and development to stay ahead of the curve.
The Role of Time Management and Consistency
Proper time management is crucial when implementing new ideas. Each horizon requires a different approach, and managing your resources efficiently across them is a skill that can greatly impact your success.
Horizon I: Regularly allocate time and resources for improvements. Consistency is key to maintaining your core operations.
Horizon II: Dedicate time to monitoring emerging opportunities. Regular reviews and adjustments are necessary to adapt to changing market dynamics.
Horizon III: Be patient but persistent. Groundbreaking innovations take time to develop. Consistent incremental efforts in research and development are essential for long-term success.
Incorporating these strategies into your business can pave the way for groundbreaking innovations, ensuring your company not only survives but thrives in an ever-evolving marketplace. By adhering to the 3 Horizons Model and the 70/20/10 rule, you can strike the right balance between short-term stability and long-term growth.
If you have questions about implementing a successful business strategy or marketing, don’t hesitate to reach out. We’re here to help you navigate the exciting world of strategic innovation and ensure your company remains at the forefront of your industry.
With the right strategy, time management, and consistency, you can turn your innovative ideas into a driving force for your business’s long-term success.