Can you explain the levels of innovation a company goes through as detailed in the innovation ambition matrix?

The Innovation Ambition Matrix can significantly contribute to the ROI of business transformation initiatives. It provides a strategic framework that helps organizations identify and prioritize innovative efforts that align with their business goals and capabilities. By plotting innovation strategies on the matrix, companies can balance their portfolio of initiatives, investing in a mix of core, adjacent, and transformational innovations. This balanced approach can lead to a diversified risk profile and potentially higher returns, thus improving the ROI of transformation initiatives.

The innovation ambition matrix is a guide, not a strict pathway. Companies can choose the level of innovation that best suits their needs and goals. They may not need to go through all levels if certain levels do not align with their strategy or if they have already achieved their desired level of innovation. The key is to use the matrix as a tool to help plot a successful transformation strategy, not as a rigid framework that must be followed in its entirety.