Arthur D. Little model: Best practice innovation management

15 April 2013

Due to the increasing competition in markets, the importance of innovation continues to increase. Various studies have shown that there is a strong correlation between best practice innovation management and achieving a higher ROI on innovation spending. Despite this, many companies continue to struggle with innovation management. What objectives and KPIs can be best used to stimulate innovation? How can we create a culture of innovation?

Typical problems that a Chief Innovation Officer or the Chief Innovation has to deal with. To help companies introduce innovation management, consulting firm Arthur D. Little has developed a new model: The Innovation Excellence Model.

The Innovation Excellence Model

Arthur D. Little's Innovation Excellence Model provides managers with a structure to understand the different components of the innovation system. The model can be divided into two areas.

  • Upstream: these are areas primarily concerned with making the right strategic choice i.e. "doing the right things" (components B, C, D, E and F).
  • Downstream: areas which consist of the more operational activities that are needed to deliver results i.e. "doing things right" (components G, H and I).

ADL - The Innovation Excellence Model 1

ADL - The Innovation Excellence Model 2