The automotive industry is undergoing rapid transformation driven by electrification and digitalization, requiring companies to balance existing product portfolios with disruptive innovation. At HMCL, the existing R-Flow framework was perceived as rigid and ineffective, slowing innovation despite the company’s vast potential. This research aimed to evaluate, adapt, and implement a more effective innovation portfolio management framework. Employee interviews highlighted the limitations of RFlow, prompting an evaluation of four leading frameworks McKinsey Three Horizons, Innovation Ambition Matrix, Arenas of Opportunity, and Strategyzer’s Portfolio Map using a key success matrix for large automotive firms. The evaluation determined Strategyzer’s Portfolio Map as the most suitable due to its scalability, agility, and customercentric approach. The adapted framework was positively received by employees and successfully tested through the development of a commuter electric motorcycle concept. Key learnings revealed the need for bidirectional gates, allowing teams to revisit earlier phases when new insights emerge. The study also emphasized the importance of determining an optimal number of experiments, balancing confidence in results with process efficiency. Additionally, not all experiments require pass/fail criteria, as some serve to assess feature importance for later adjustments. Hardware innovation presents challenges, particularly in prototyping, where cost and supplier constraints limit iterative development. The study also identified visualization limitations, as traditional methods often fail to convey novel ideas effectively. Future work should explore VR, AI-driven simulations, and advanced visualization techniques to improve stakeholder engagement. Further research is needed to refine experimentation processes, develop rapid prototyping strategies, and validate the adapted framework across multiple projects. This study contributes to a structured and scalable approach to innovation portfolio management, helping HMCL and other automotive companies optimize innovation strategies in the evolving mobility landscape.
Implementation of innovation portfolio management in an automotive company using Strategyzer framework.
Ayub, A. B. (Author). 2025
Student thesis: Master's Thesis