27 Innovation Acronyms That Everyone Should Know

Acronyms are like coupons. They can be extremely helpful in conveying complex information quickly and easily, but only if you actually remember to bring them with you to the store.

Acronyms come about through a variety of means. Sometimes they are created by an individual or group who is looking to shorten a phrase or name. Other times, they are born out of necessity, as certain terms become more commonly used in a specific field or industry. Regardless of how they come about, acronyms can be extremely helpful in conveying complex information quickly and easily.

Over the years, we have collected acronyms that apply to the field of innovation. We believe it's important for everyone, from entrepreneurs to corporate executives, to be familiar with these terms.

Here is a starter list of 27 innovation acronyms. The innovation acronyms below may have multiple definitions because they can be used in different contexts.

Note: If you have innovation acronyms you think should be added, post them in the comments below.

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Bauhaus

1. The Bauhaus was a school in Germany that taught a style of art and design that emphasized simplicity and functionality. The goal was to create designs that were both beautiful and practical. The Bauhaus style is still popular today and has been influential in the fields of architecture, art, and design.
2. To reimagine the world through products, services, and experiences to reflect the unity of all the arts. See Bauhaus

BHAG

1. A BHAG, or Big Hairy Audacious Goal, is a goal that is so ambitious and challenging that it may seem impossible. It is the goal that inspires people to push themselves to their limits and achieve something amazing. A BHAG is a way to focus the mind and galvanize the team around a common purpose.
2. A goal that is audacious and challenging, inspiring people to reach for the stars. A BHAG is something that can focus the mind and rally the troops around a common cause. It is a way to motivate people to achieve something amazing.
3. A visionary goal that is both strategic and emotionally compelling. It serves as the focal point of effort and as a catalyst that enables teams to achieve industry-changing innovations. A well-constructed BHAG defines the end aim in a strategic story while not defining the “how”.

Brainstorm

1. Brainstorming is a creative process of generating, developing, and communicating new ideas. It involves coming up with new solutions to problems, thinking outside the box, and simply generating as many ideas as possible.
2. A method used in ideation is where a team generates ideas to solve a clearly defined problem. In controlled conditions and a free-thinking environment, they produce a vast array of ideas to find potential solutions.

Breakthrough Innovation

1. An innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market-leading firms, products, and alliances.

Chief Innovation Officer

1. A Chief Innovation Officer is a senior executive responsible for driving innovation within an organization. They oversee all aspects of the innovation process, from ideation to commercialization, and ensure that the organization remains competitive and stays on the cutting edge of technology and industry trends.
2. The CIO is a senior executive responsible for leading and directing all aspects of an organization's innovation initiatives. They create an environment where innovation can thrive, and for ensuring that the organization remains competitive and stays ahead of the curve in terms of technology and industry trends.
3. The most senior executive/leader in an organization with responsibility and sponsorship for innovation. This role oversees the innovation culture, innovation framework, and sponsorship of innovation efforts occurring across the organization.

Creativity

1. Creativity is the ability to come up with new ideas and solutions. It involves using your imagination to come up with original ideas. Creativity is essential for problem-solving.
2. The natural human ability to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others, and entertaining ourselves and others.

Design Thinking

1. Design thinking is a creative problem-solving process that helps you come up with innovative ideas. It involves looking at problems from a different perspective and using brainstorming techniques to generate a variety of workable solutions. Once you have a few ideas, you can then evaluate them and select the best one. Design thinking is often used in the design process, but it can also apply to other areas, such as business, education, and government.
2. A process used in ideation for creative problem-solving where the focus is pulling together what's desirable from a human point of view with what is technologically workable and economically viable.

Disruption

1. Disruption is a term used in business and economics to describe innovating new products or services that challenge the status quo. Disruptive businesses are often those that offer something different and better than what is currently available, and they often succeed by appealing to a new or underserved market.

Disruptive Shock

1. A Disruptive Shock is an event or occurrence that causes a drastic change in the way things are done. It can be something as simple as a new technology or invention that comes along and upends the status quo, or it can be a major change in the political, environmental, or economic landscape. Whatever it is, disruptive shocks have the potential to completely change the game and disrupt existing industries and markets.
2. A sudden upsetting or surprising event or experience that stops something from continuing as usual.

Ethnographic Innovation

1. Ethnographic innovation uses ethnography to understand how people use products and services and then use that understanding to create new products and services that meet their needs. It is a way of understanding the user experience and designing for it. Ethnography provides insights into how people think, feel, and behave, which can create better products and experiences.
2. Observing people in their cultural setting, with the goal of producing a narrative account of that culture, against a theoretical backdrop. This then becomes the inspiration for the problem statement used in ideation.

Exponential Innovation

1. An exponential innovation is one that grows at an increasingly fast pace over time. It may start off small, but it eventually explodes in popularity and disrupts the status quo. Exponential innovations are often characterized by rapid growth and a high degree of innovation intensity.
2. In each period, an innovation doubles in capability or performance. Or perhaps on the flip side, it halves in cost in each period. It is typically a technology at the point where its price performance makes it possible to solve today’s business problems in ways that were not previously possible.

Focus Group

1. A focus group is a moderated discussion with a small number of people who are representative of a larger population. The goal is to gain insights into people's thoughts and feelings about a product or service. The results of a focus group can be used to make decisions about how to improve or redesign a product or service.
2. A small, but demographically similar group of people take part in guided discussions about a new product to determine the reactions from a larger population

Incremental Innovation

1. Incremental innovation is the introduction of small changes to an existing product or service in order to improve it. These changes can be as simple as making a minor adjustment to the design or function of a product or adding a new feature or capability. Incremental innovations can help businesses stay competitive and keep up with changing demands in the marketplace.

Idea

1. An idea is a plan or suggestion of something that can be done to improve a situation. An idea can be big or small, and it can come from anyone. With innovation, ideas are the starting point for creating something new.
2. A concept developed by your mind of what is desirable or ought to be.

Idea Ranking

1. Idea ranking is a process of sorting and organizing ideas according to their potential value. The highest-ranking ideas are those that are most likely to have a positive impact on the organization. Idea ranking can be used to prioritize initiatives and decide about which ideas to pursue.
2. Using a defined criterion to result in a ranked list of top ideas is usually performed at the end of an ideation effort. This shortlist defines what will be considered an innovation.

Ideation

1. Ideation is the process of generating and developing new ideas. It can involve coming up with new solutions to problems, brainstorming new product ideas, or simply thinking outside the box to come up with novel ideas.
2. The creative process of generating, developing, and communicating new ideas, where an idea is a basic element of thought that can be visual, concrete, or abstract. Used by individuals, organizations, or groups. You can use a variety of tools and methods. See brainstorming and design thinking.

Ingenuity

1. Ingenuity is the ability to take what is available and make something new and better from it. It is about being resourceful and finding solutions to problems in a creative way.
2. The ability to solve intractable problems, often in original, clever, and inventive ways.

Innovation

1. Innovation is the process of taking an idea and turning it into a reality. It can be something as simple as coming up with a new way to do things, or as complex as creating a new product or service. Innovation is about finding new ways to solve problems.
2. An idea made real; introduce something new; alternative methods. It results from a multi-stage process whereby organizations transform ideas into improved products, services, or processes in order to advance, compete, and differentiate themselves successfully in their marketplace.

Innovation Culture

1. An organizational culture that values and supports innovation, so that people can make innovation happen.
2. An innovation culture is one that encourages creativity and new ideas. Employees in an innovation culture can experiment and take risks, knowing that their ideas will be supported. This type of culture is necessary for organizations that want to stay competitive and continue to grow.

Innovation Framework

1. An innovation framework is a guide for how to foster innovation in an organization. It includes steps for creating a culture of innovation, encouraging creativity and new ideas, and supporting employees who take risks. The framework also provides tools and resources for implementing innovation initiatives.
2. The components that define a mental model provide an overall understanding of how an organization thinks and supports innovation. Innovation framework and process are not the same things. See Innovation Framework.

Innovation Rate

1. The Innovation Rate is the frequency at which a company or individual introduces new products or services. This can be measured in terms of the number of new offerings introduced in a given period, or the percentage of total sales that come from new products or services.
2. A measure that shows how innovative a company is in terms of new or improved products, services, or processes. Measures the portion of the revenue with new/improved products or services compared to the total revenue. Innovation Rate = (Gross Revenue-Earned of New Products or Services) / (Gross Revenue—Earned)

Inspiration

1. Inspiration is a feeling of excitement and enthusiasm that comes from seeing or experiencing something new and exciting. It is the motivation to pursue new ideas and create change. Inspiration can be sparked by something as simple as a new invention or as complex as a new scientific discovery. It is the spark that ignites the flame of innovation.
2. Being mentally stimulated to do or feel something creatively. It can come visually, audibly, tactically, taste, and/or smell.

Killer Innovation

1. Killer innovation is an invention or creation that completely changes the game, upends the status quo, and leaves previous competitors in the dust. It's a new product or service that is so radically different and superior to what came before that it completely redefines the industry and creates an entirely new market. Killer innovations are rare, but when they occur, they can be incredibly successful.
2. A significant and highly profitable departure from current offerings or practices that would be difficult to duplicate. (https://philmckinney.com/killer-innovation/).

Lightbulb

1. A lightbulb is a metaphor for an idea because it is something that is often small but can make a big impact. It is something that can be easily dismissed, but if given the chance, can shine bright and illuminate the way. Ideas are like lightbulbs in that they are often underestimated, but have the potential to create a lot of change.
2. An overused metaphor to represent the spark of an idea.

Plus It

1. Plus It refers to the ability to create something new and better from what is available. This can be done through ingenuity and resourcefulness, by finding solutions to problems in a creative way. Plus It is about making the most of what you have and turning it into something amazing.
2. A technique developed by Walt Disney to iterate on ideas without harsh criticism. It starts with finding what is good about an idea and building on it to make it even better.

Problem Statement

1. A problem statement is a concise description of a problem that needs to be solved. It can provide clarity and focus and can help to make sure that all stakeholders agree. It can also evaluate potential solutions and determine which one is best suited for solving the problem.
2. A statement that defines the issue or opportunity to be addressed, including the who, what, where, when, why, and how.
3. A statement that is concise, not stating a solution but is specific enough to be solvable in the time frame and with resources and competencies. It can structure the statement to solve a problem, remove a barrier, or improve an experience.

70/20/10 Funding Model

1. The 70/20/10 funding model is a way to allocate resources in a way that encourages creativity and innovation. 70% of the funds are for basic needs and infrastructure, 20% are for developmental needs, and 10% are for exploratory and experimental projects. This allows for stability and security while also providing room for growth and experimentation. It is a way to ensure that both short-term and long-term goals are met.
2. A target funding structure where 70% of research and development funding is focused on new and improving core products and services. 20% towards adjacent (new products to existing customers, or existing products to new customers) and then 10% towards new areas (new products to new customers).