The 70-20-10 Rule: Why Most Innovation Budgets Fail
The Investment Reality:
• 70% maintains core business
• 20% extends existing products
• 10% creates breakthrough innovation
• Most companies ignore this balance
Current State:
• 92% overinvest in core
• 65% underinvest in breakthroughs
• 78% face disruption threat
• 83% lack innovation pipeline
Common Mistakes:
• All-in on moonshots
• Ignoring core improvements
• Missing adjacent opportunities
• Random resource allocation
• No portfolio balance
Risk Patterns: Core (70%): Low risk, known returns Adjacent (20%): Medium risk, new growth Transformative (10%): High risk, huge potential
Portfolio Strategy:
• Protect the core
• Build bridges to new
• Plant future seeds
• Balance resources
• Measure differently
Key Success Factors:
• Clear categorization
• Dedicated resources
• Different metrics
• Protected budgets
• Leadership patience
#InnovationStrategy #PortfolioManagement #BusinessGrowth #StrategicPlanning #Innovation