There are two degrees of innovation, radical and incremental. Radical innovation is the creation of a new product
service or process. While incremental innovation is related to small changes to an existing service, product or
process (Booz-Allen & Hamilton, 1982). In order to commercialize an idea it has to go through various phases, Katz
(2011) called it the Development Funnel, where all ideas are collected (ideas collection stage), best ideas are chosen
(concepts stage) and implemented (projects stage). This method allows filtering the best ideas and ensuring
businesses develop those into projects. Projects may be rejected and recycled at any stage and all departments of an
organization and external organization can contribute to drive open innovation.