Horizon 3 targets transformational innovation – bold bets that may disrupt the market or create new industries.

For CSPs, Horizon 1 might involve optimizing billing platforms or customer self-service portals; Horizon 2 could explore adjacent opportunities like IoT platforms or private 5G; and Horizon 3 may involve disruptive ventures into digital identity, AI-based service orchestration, or network-as-a-service models.

Organizations that work across multiple horizons often structure themselves accordingly, with dedicated teams and strategies for each level. Horizon 1 teams typically leverage internal expertise to drive continuous improvement. At the same time, Horizons 2 and 3 require teams that can operate in greater uncertainty: scouting ventures, forging partnerships, and embracing risk in the pursuit of breakthroughs. These latter stages often involve larger investments and external funding, including venture capital..

Navigating innovation with purpose

At every Horizon, the goal remains the same: understand customer needs, validate promising solutions, and identify viable markets while minimizing early-stage investment. As ideas move through the innovation journey and uncertainty is reduced, investment naturally scales up (see figure 3).

Figure 3
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Importantly, innovation isn’t limited to product development. New services, business models, and organizational transformations can drive lasting change. Many of the most impactful innovations come from rethinking how value is created and delivered, not just what is being built.

That’s why innovation management plays a central role in the modern enterprise. Establishing clear strategies, identifying focus areas, and implementing structured innovation processes ensures that creativity is transformed into measurable results. When managed effectively, innovation becomes a repeatable engine of growth and resilience.

Figure 4
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Innovation and acceleration funnel

Managing innovation in the face of uncertainty requires structure without stifling creativity. One proven approach uses an innovation funnel, a strategic framework that organizes innovation into clear stages and decision gates. It guides investment, focuses resources, and supports informed decision-making throughout the innovation lifecycle (see figure 4 above).