Innovation
New products, business models, and processes that create value.
Without a pipeline, margins compress and revenue plateaus.
Cawan's Shoes 70/20/10 innovation portfolio on $25M R&D: • 70% CORE — $17.5M: incremental updates to AeroCush running platform, new colorways, seasonal drops. Payback <18 months. • 20% ADJACENT — $5M: performance-trail category launch, women's-first sub-brand, kids' orthopedic line. 2–4 year horizon. • 10% TRANSFORMATIONAL — $2.5M: 3D-printed custom midsoles, recycled-ocean-plastic upper, RFID-embedded shoes for gait analytics. 5+ year, high failure rate accepted. Stage-gate: 24 concepts entered stage 1 last year, 6 reached market, 2 hit >$10M revenue (AeroCush Trail, Women's Glide).
No innovation = slow death by commoditization.