Introducing New Ideas into the Innovation Funnel
Posted: January 6th, 2012 in Addressing Consumer Needs, Innovation, Innovation Training, Solution Generation
By Rishu Mendolia
Although innovation is best executed (with the highest rates of success) by using a disciplined customer-centric process, it is not uncommon for creative thinkers to come up with unprompted ideas for new products, services, and businesses. This is especially true for those closest to the market, as they are regularly exposed to customer needs and market opportunities. But how can the individual decide how to best evaluate the idea before bringing it to a larger group? Here’s a set of 5 questions that can help you think through an idea. Not all of these questions can be completely answered at this early stage. But by thinking through these topics, the idea can be better defined and evaluated.
1. Strategically, how does the idea fit the company’s growth goals? Which specific company strategies does the idea address?
2. How does this idea benefit the company? Is it new revenue through incremental business? It is higher customer retention? What are the potential financial returns?
3. Who is the target market for this idea? What need/opportunity does this address? Would customers change their behaviors to make use of it?
4. What does the current competitive space look like, including direct competitors and possible substitute solutions? How easy would it be for someone to copy this idea?
5. What kind of developmental effort would it take to commercialize this idea?
Of course, extreme care should be taken that this does not become the start of the innovation process – real innovation starts by identifying customer needs and THEN generating ideas. But in such an instance where an individual first comes up with an idea, the company should carefully conduct primary market research around the opportunity this idea is attempting to address, and then reevaluate – and shape - the idea if it still fits the uncovered needs. Additionally, thorough prototyping and market testing would also be required to maximize the impact of the idea.
Taking an idea through the rigorous innovation process is generally a lengthier effort than hurried commercialization. But by doing so the company can maximize the chances of its success and avoid substantial losses that would otherwise be realized by launching the untested offering.