Transformation or Illusion: The Key Questions to Ask Before Pursuing Radical, Disruptive Innovation

Radical or disruptive innovation refers to the introduction of a new product or service that significantly changes the way an industry operates or creates a new market. These types of innovations can be particularly impactful because they have the potential to disrupt existing market dynamics and create new opportunities for growth.

However, pursuing radical or disruptive innovation can also be risky, as it involves investing significant resources into an untested product or service and there is a chance that the innovation will not be successful.?

I shared some insights based on an overview of pro’s and con’s in my previous newsletter and this is a follow-up in the context that leaders of organizations considering pursuing radical or disruptive innovation need to carefully consider a range of questions in order to assess the feasibility and potential impact of the innovation.?

These questions may relate to the organization's resources, risk tolerance, ability to execute new ideas, market readiness, regulatory environment, partnerships and relationships, and goals and metrics for measuring success.?

By considering these questions, leaders can make informed decisions about whether to pursue radical or disruptive innovation and how to maximize the chances of success.

Questions to ask yourself before starting a radical, disruptive innovation project:

Do you have the full support of your company’s top executives?

Innovation can’t happen without the support of top management. Radical innovation requires even more commitment. You need executives who are personally invested and willing to spend their political capital to undertake radical innovation projects the right way. Moreover, executives must have the right mindset for - and a strong understanding of - innovation.

Does your company have a corporate strategy with room for innovation?

Many multibillion-dollar companies need to develop billion-dollar growth every year to satisfy their stockholders. They often take an acquisition approach to fulfill this need for growth, which can lead to a reduced focus on internal innovation efforts including radical innovation projects - even though it is often acknowledged that, over the long term, radical innovation projects can help develop entirely new business platforms that can bring high growth. You need to consider whether your overall corporate strategy works well with innovation.

How does the proposed innovation align with the organization's overall mission and strategic goals??

It is important for organizations to consider how the proposed innovation aligns with their overall mission and strategic goals. If the innovation does not align with these goals, it may not be worth pursuing.

Do you have the right people to execute radical innovation projects?

You need a special breed of people to make radical innovation happen. Their traits and skills must include optimism, passion and drive, curiosity, belief in change, talent for networking, and the ability to deal with—and win over—the many internal and external detractors who will oppose the project. Most companies do not have the proper processes in place to identify and develop such people.

Do you have the organizational processes and framework needed to make radical innovation happen?

Even if you have the right people, you still need the right processes and framework. This helps mitigate the detractors who are sure to oppose anything that might change the status quo.

Is the timing right?

Most radical innovation projects take a long time—often three to seven years—to grow from an idea to substantial revenues. Executives typically approve these types of projects during good economic times. When the economy takes a downturn, they are forced to take a hard look at their portfolio of innovation projects and decide which—if any—should be shut down.

It can be very risky to shut down the more radical projects before they yield results. Executives often find it difficult to accept the high level of risk associated with these types of projects. One must understand that radical innovation is a high stakes venture with potential for very high returns.

Is the organization prepared to make the necessary changes to its structure, culture, and capabilities in order to support the innovation?

Radical or disruptive innovation often requires organizations to make significant changes to their operations, including the way they structure their teams, the technologies they use, and their overall culture. It is important for organizations to consider whether they are prepared to make these changes in order to support the innovation and ensure its success.

Does the organization have the resources (financial, human, technological) to invest in and execute a radical or disruptive innovation project??

Radical or disruptive innovation can be a significant undertaking, requiring the allocation of significant resources in order to develop and bring the innovation to market. It is important for organizations to consider whether they have the necessary resources, including financial capital, skilled personnel, and technological capabilities, to support the innovation.

Is the organization willing to take on the risks associated with radical or disruptive innovation, including the possibility of financial losses and backlash from stakeholders??

Radical or disruptive innovation involves taking on a high level of risk, as it involves introducing a new product or service that has not been tested in the market. Organizations need to consider whether they are willing to accept the potential risks, including the possibility of financial losses if the innovation is not successful, as well as potential backlash from stakeholders such as customers, partners, or competitors.

Does the organization have a track record of successful innovation and the ability to execute new ideas effectively??

Pursuing radical or disruptive innovation requires an organization to have a strong track record of innovation and the ability to execute new ideas effectively. Organizations should consider whether they have the necessary systems and processes in place to support the development and implementation of new ideas.

Is the market ready for the radical or disruptive innovation being proposed, or will it require significant effort to educate and convince potential customers??

It is important for organizations to consider whether the market is ready for the radical or disruptive innovation being proposed. If the innovation is too far ahead of its time or requires significant effort to educate potential customers, it may be more challenging for the organization to achieve success.

Are there any regulatory or legal hurdles that the organization will need to overcome in order to bring the innovation to market?

Organizations should consider whether there are any regulatory or legal hurdles that they will need to overcome in order to bring the innovation to market. These may include obtaining necessary approvals or complying with industry-specific regulations.

Does the organization have a strong network of partnerships and relationships that can support the innovation and facilitate its adoption??

Radical or disruptive innovation often requires the support of a strong network of partnerships and relationships in order to be successful. Organizations should consider whether they have the necessary partnerships and relationships in place to support the innovation and facilitate its adoption.

How will the organization measure the success of the innovation and ensure that it is meeting its desired goals??

It is important for organizations to have clear goals and metrics in place to measure the success of the innovation and ensure that it is meeting its desired outcomes. Organizations should consider how they will measure the success of the innovation and what metrics they will use to track progress.

How does the proposed innovation align with the organization's overall mission and strategic goals??

It is important for organizations to consider how the proposed innovation aligns with their overall mission and strategic goals. If the innovation does not align with these goals, it may not be worth pursuing.

What is the potential market size for the innovation and is there a clear path to profitability??

Organizations should consider the potential market size for the innovation and whether there is a clear path to profitability. If the potential market is too small or there are significant barriers to entry, the innovation may not be a viable option.

What is the level of competition in the market and how will the organization differentiate itself??

Organizations should consider the level of competition in the market and how they will differentiate themselves from other players. If the market is highly competitive and it is difficult to differentiate the innovation, it may be more challenging to achieve success.

What is the potential impact of the innovation on the organization's existing products or services??

Organizations should consider the potential impact of the innovation on their existing products or services. If the innovation could disrupt or cannibalize existing products or services, it may not be worth pursuing.

There are of course many other questions to consider but these can you help get a discussion started on how your organization can approach radical, disruptive innovation initiatives and efforts.