Using the Three Horizons Model for Balanced Innovation Portfolios

Organizations need to prioritize and focus on the right innovation investments in today's complex and ever-changing business world to ensure business continuity and sustainability. Gartner recommends the Three Horizons Model, an innovation portfolio planning model, to balance different innovation objectives. According to Gartner, organizations can prioritize innovation efforts along seven dimensions to enable the development and optimization of their innovation portfolios. The Three Horizons Model, initially developed by McKinsey, helps business leaders prioritize focus and resources across three defined horizons, with the most commonly cited portfolio balance being 70% in Horizon 1, 20% in Horizon 2, and 10% in Horizon 3. The ITONICS Innovation OS supports innovation prioritization by enabling the thorough exploration of market opportunities, data collection for anticipated future scenarios, and balance of innovation efforts.