To find the array of feasible innovations from the profile of possibilities, we have to consider organizational fit. Which of the possible innovations are appropriate for the organization to pursue?
To help us select, we use the technology relevance matrix. It displays the profile of possible innovations in relation to corporate competencies. For an innovation to be considered feasible it must have elements with which the organization is familiar. These can be technological, like materials, principles of operation, structure, and size; or they could be non-technological like markets and geography.
The recent announcement by Exxon Mobil, that it would pursue the development of algal biofuel, offers a useful example. This innovation would involve an oil exploration and refining company in the biological production of feedstock. There is also the need for genetic manipulation of the organism involved. While this technology-based innovation would “apply new and unfamiliar technology in a novel and unique manner” there is a fit between bio-based and petro-based technologies. In both cases the final product would use similar infrastructures in distribution, both involve like materials – i.e., liquid motor fuel, while the waste product of the one, i.e. carbon dioxide, serves as input to the other.
The technology relevance matrix is used to produce a list of say ten feasible innovations. From these we select the final hotlist.
The hotlist uses three criteria:
- High technological potency
- Organizational familiarity
- Managerial passion and commitment
To apply these criteria we use an intuitive procedure. It is based on a system of voting in which managers use their best judgment on the first two criteria, and then, by voting, guarantee their commitment to the project.
Copyright: Rias J van Wyk, 2009.