Radical innovation requires a planning approach that acknowledges the unknowns and uncertainties involved this approach called discouery-driuenplanning 26 requires that managers make assumptions about the future in order to build their forecasts and targets, recognizing that these asssumptions may be quite wrong as more information become available tke targets are rethought the forecasts adjusted and the plan evolves this is different from the approach more typically seen in less uncertain markets, where past results can be used to build predictable forecasts of the future.A guiding principle in discovery-driven planning is the reuerse income statement, which starts from the bottom (required profits)and worke backward to required levels of revenues and costs the firm should also be pursuing a real-options orientation to investment 27 the firm can mark low-cost test investments to gather information on the technology and its