Innovation Management:
From Uncertainty to Impact

By: Tiago Lopes

Innovation is the process of translating an idea or invention into a product or service that creates value that customers are willing to pay for. It inherently involves a degree of uncertainty regarding the problem, the solution, and the market.

In the telecoms sector, competitive threats and rapid technological change mean that innovation is not just an advantage. It’s a competitive necessity.

For CEOs, monitoring innovation closely is imperative because, despite the risk, it is not optional. Innovation keeps organizations relevant in the market, enables growth, and attracts investors’ interest.

Innovation is a key driver of organizational change, the adoption of new technologies, and the development of new skills. It paves the way for new products, services, and business models (see figure 1).

Figure 1
Corporate innovation: balancing horizons for long-term impact
click to enlarge 

Corporate innovation isn’t a one-size-fits-all effort but an evolving process, depending on market maturity, technological readiness, and strategic goals.

Figure 2
Each horizon represents a different level of innovation maturity:

A widely used model to guide this approach is the Three Horizons Framework, which helps companies manage different types of innovation based on time horizon, uncertainy, and opportunity (see figure 2 above).

Horizon 1 focuses on core business improvements – incremental innovation to optimize and enhance existing products, services, and processes.

Horizon 2 explores adjacent opportunities – emerging ideas and technologies that can create new business models or extend current capabilities.