MANAGING DISRUPTIVE INNOVATION by VALUE-ORIENTED PORTFOLIO PLANNING

Abstract

Innovation portfolio management (IPM) aims at selecting ideas with regard to their potential for innovation and measuring them considering customer and business value. The evaluation of benefits and risk is especially challenging for disruptive innovation (DI) due to their characteristics such as low comparability to existing technologies and uncertain customer reactions. This paper highlights the lack of approaches to managing DI in IPM and addresses it through a framework that expands the understanding of value-orientation in IPM, allowing for the inclusion of DI.