The product innovations that generate the most excitement and public interest are the disruptive innovations. They could be a new way to call a cab, drive a car with little need for gas, or a completely new way to look at medical science, technology, or entertainment.
However, these innovations aren’t that common. The most successful, innovative companies strike a balance between core, adjacent, and transformational initiatives. A 2012 study found that companies that allocated about 70% of their innovation activity to core initiatives, 20% to adjacent ones, and 10% to transformational ones outperformed their peers.
