The Three Pillars of World-class Corporate Innovation


This post is by steve blank from Steve Blank


My good friend Alexander Osterwalder, the inventor of the business model canvas (one of foundations of the Lean Methodology) has written a playbook (along with his associate partner Tendayi Viki,) From Innovation Theater to Growth Engine to explain how to build and implement repeatable innovation processes inside a company. 

Here’s their introduction to the key concepts inside the playbook.


Over 75% of executives report that innovation is a top three priority at their companies. However, only 20% of executives indicate that their companies are ready to innovate at scale. This is the challenge for contemporary organizations: How to develop a world-class ecosystem that can drive repeatable innovation at scale.

The playbook describes the three pillars of corporate innovation: Innovation Portfolios, Innovation Programs and a Culture of Innovation. Under each pillar, the playbook describes three questions that leaders and teams can ask to evaluate whether their company has the right innovation ecosystem in place.

Innovation Portfolio: what are your company’s portfolio of innovation projects?

  • Are your company’s innovation efforts exploring or exploiting business modes?
  • Does your company have a balanced portfolio of projects that cover efficiency, sustaining and transformative innovation?
  • What is the health of your innovation funnel or pipeline?

Explore: Search for new value propositions and business models by designing and testing new business ideas rather than execution. 

Exploit: Manage existing business models by scaling emerging businesses, renovating declining ones and protecting the successful ones.


Innovation Programs: how are your company’s innovation programs are structured and managed.