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| From the Editor's Desk
McKinseys Three Horizons Model Defined Innovation for Years. Heres Why It No Longer Applies. In the 20th century McKinsey created a model called the Three Horizons to explain how businesses must invest in current products, incremental innovations, and breakthrough innovations. The framework relied on time as a guiding factor; it assumes that truly breakthrough innovations will take years to develop. Technology has made that assumption incorrect: Today innovations like Uber and Airbnb can be rolled out extremely quickly. Because established companies tend to move slowly and must invest resources in existing products, this means that unlike in the 20th century, attacking disruptors now have the advantage.
When first articulated by Baghai, Coley, and White in 2000, in The Alchemy of Growth, the Three Horizons model was a breakthrough. Over the years, HBR articles have referenced the Three Horizons as a foundation of innovation strategy, here, here and here.
Continued here
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