As innovation management matures into a well-defined and practiced discipline, the focus for CIOs, CDOs, and innovation managers will start to shift from establishing innovation processes to mastering the integration of emerging digital technologies. While we now have a solid understanding of innovation management best practices and how to develop, and even certify, innovation management systems, the challenge is less about structuring innovation and more about preparing organizations to handle the uncertainty inherent in immature technologies.
The rapid development of digital technologies, from AI and quantum computing to edge computing and 5G, means that today’s innovation management systems must accommodate technologies that are not yet fully proven or standardized. By effectively managing these early-stage technologies within a structured innovation framework, organizations can strategically align their innovation ambitions with their tolerance for risk, enabling them to identify and invest in the most promising digital technologies at the right time.
Why emerging digital technologies need structured innovation management
The potential of immature digital technologies is undeniable, yet their unknowns can pose significant risks if not managed carefully. Traditional approaches to technology adoption often don’t account for the early stages of digital technologies, where development is fluid, standards are uncertain, and future applications are still being defined. This is where innovation management systems play a crucial role by providing a systematic approach to assess, monitor, and adopt new technologies.
A mature innovation management system with integrated best practices allows organizations to map digital technologies according to their maturity level, pinpointing when each technology is ready to deliver timely strategic value. This avoids premature investment in technologies that aren’t yet viable while ensuring the organization stays ahead of competitors by adopting high-impact technologies as soon as they mature.
Incorporating innovation ambition and risk willingness into the system
For an organization to succeed with emerging technologies, it’s essential that its innovation ambitions and risk tolerance are clearly defined and incorporated into the innovation management system. Different organizations have varying capacities for breakthrough innovation. Some are ready to take calculated risks on early-stage technologies that could yield significant competitive advantages, while others might prioritize technologies with proven stability.
Incorporating innovation ambition and risk tolerance into an innovation management system enables leaders to make informed decisions about which digital technologies to invest in and when. For instance:
- Organizations with high innovation ambitions and a willingness to accept greater risk might focus on technologies like fog computing, swarm intelligence and generative design, anticipating long-term impact despite the current lack of maturity.
- More conservative organizations, focusing on incremental innovation, might prioritize adopting edge computing, computer vision or RPA solutions that have achieved a degree of maturity and reliability.
This approach means innovation managers can select technologies that align with the organization’s capacity for disruption, ensuring that innovation efforts are impactful and well-matched to the company’s strategic positioning and impactful use cases.
Mapping the maturity level of technologies for timely integration
One of the most valuable functions of an advanced innovation management system is its ability to map and monitor the maturity levels of emerging technologies. By employing frameworks such as Technology Readiness Levels (TRLs) or my own forthcoming forecasting model TMM-NET (Technology Maturity Model for New and Emerging Technologies), innovation managers can track a technology’s progress, from concept through development to commercialization. This insight allows organizations to time their investments strategically, adopting technologies at optimal maturity levels for their specific needs.
For instance, a healthcare organization might monitor advancements in biosensors and wearable technologies to determine when they are stable enough for integration into patient care processes. By aligning these investments with their innovation ambitions, they ensure that emerging technologies enhance their core capabilities rather than disrupt operations.
Ensuring a competitive edge in a growingly digital world
In an increasingly digital world, the maturity of innovation management systems will determine whether organizations gain or lose competitive ground. As technologies evolve at an accelerating pace, only those organizations with adaptable, forward-looking innovation systems will be able to effectively harness the power of new technologies. By building flexibility into their innovation frameworks and prioritizing technologies that align with their goals and risk tolerance, CIOs, CDOs, and innovation leaders can continually refresh their competitive edge, which at the end of the day is the entire purpose of innovation management.
In conclusion, the evolution of innovation management toward handling emerging digital technologies is essential for organizations aiming to stay ahead. By incorporating innovation ambition, risk tolerance, and technology maturity tracking into their systems, leaders can strategically adopt new technologies, maximize business value, and maintain a future-focused competitive stance. This integrated approach is not just best practice—it’s the next level of innovation management in the digital age.
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