In a commentary, SMU Visiting Professor of Information Systems Arcot Desai Narasimhalu said that an adjacent innovation centred on the traditional definition of selling new products to old customers or old products to new customers, can generate a new product line, a new product type or a new version of a product. Adjacency is not about designing any innovation portfolio but about strengthening an innovation portfolio by including adjacent innovation opportunities in addition to innovations in the core and new products and services. He opined that embracing adjacent innovations may result in the need to exit from a current product or service line. The emotional cost in letting go of a previously successful product or service may be a reason why some companies may not practice adjacent innovations. However, progress in innovations cannot be stopped by any one company that decides not to create innovations adjacent to its current product lines. Companies that wish to have a sustainable market leadership along with healthy revenues and profits have no choice but to embrace and manage adjacent innovations.
[Featured Photo: Professor Arcot Desai Narasimhalu]