Innovation projects have varying levels of risk and potential returns. They can be radical (with high risk and return potential) or incremental (with low risk and return potential) as well as several degrees in between. A conscious effort to classify innovation projects according to their risk/return profile and manage the resulting portfolio according to pre-defined goals shifts the focus away from individual projects in favor of the portfolio level.
Authors: Alexander Börsch, Nicolai Andersen
Source: Deloitte Review