9 Metrics for Managing Innovation: Lessons From Growth Leaders ^Top effectively and support the organizational transformation needed to stay ahead. When guided by a clear strategic vision, they enable a firm to adapt to turbulent and uncertain market conditions.9 Innovation in its many forms enables this adaptation. Innovation Is Risky Innovations come in degrees, and each innovation initiative (i.e. new product development or R&D project) can be located along a continuum of degrees of innovation. The three categories of small i … adjacencies … BIG I, map closely to the familiar three horizons representation of levels of innovation: 9 George S. Day, “Is It Real? Can We Win? Is it Worth Doing?," Harvard Business Review (December 2007). small i (Horizon 1) Incremental improvements • better • faster • cheaper Line extensions • efcacy • convenience Adjacencies (Horizon 2) BIG I (Horizon 3) Similarity of market: • customer behavior • competitive set • brand promise • channels Applicability of Capabilities/Technology: • product development capability • technology platform • manufacturing/service delivery • knowledge/science (IP) Transformations = reframe existing categories: • home routers/ networks • liquid bandages • frozen yogurt Disruptions • online trading platforms vs financial advisers • autonomous cars Extend/Defend Core