Page 9 - INNOVATION STRATEGY EXAMPLE

The Innovation Ambition when compared to other Australian mining companies we also find to be primarily focused on continuous improvement and operational excellence (‘core’ innovation), but they recognised that they needed a greater focus on transformative innovations which entailed developing new products and services or servicing new customer bases altogether (‘adjacent’ and ‘transformational’ innovation).
The research* illustrates this point, with Australia’s mining companies distributing innovation funding to 68% Core, 22% Adjacent, and 10% Transformational projects. Their target however, was a portfolio of 56% Core, 28% Adjacent and 16% Transformational. Further, this research suggests that the most successful innovators manage their innovation efforts and investments as a portfolio that is balanced across the three ambition levels.
*Innovation in mining Australia 2016, Deloitte Risk Appetite
A challenge for XXXXX P/L is that no business can thrive without taking on risks. A key benefit of building an Innovation Strategy is to secure a balanced portfolio between risk appetite and innovation. Deploying a risk appetite framework where risks are identified and relates them to the organisation’s strategy is imperative. Risk appetite around continuous Improvement and projects has been listed as Accepting during the development of the terminal’s Risk Appetite Statement (see Appendix, Figure A).
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