Innovation, Idea Selection, Valuation

There is no sure fire route to commercial success, but one can maximize the chances of selecting those ideas that are most likely to succeed. Organizations short of R & D resources must implement such processes. The Economist (2003) states that 3000 bright ideas result in 100 worthwhile projects, which are winnowed down to four development programmes. And four such development programmes are required to stand any chance of getting one winner.

So how do we value ideas? There are quite a few categories of evaluation. Some include:

a) Those types of ideas that have been most successful in the past. Franklin (2003) notes at least six types, including need spotting, solution spotting, market research resultants, random event, mental invention, trend following. Each type has it's own percentage of success.

b) Fit with the firm. Katz (2003) argues that ideas are more likely to succeed if the firm has i) the strategic fit, ii) the technical expertise and iii) the business competencies to make it work.

c) Utterbeck (1994) notes that practical impediments can make or break a valuable idea. For instance, the cultural resistance to condoms in Africa have contributed to the spread of HIV. He has devised the S-curve, which allows relative measurement of ideas against practical impediments.

d) The timing of GO and KILL decisions have an impact. When an idea is in the pipeline, a premature KILL decision may not allow the potential of an idea to be fully realised. However, keeping it in the GO state may use up valuable resources that hinder other valuable ideas.

e) Success is more likely if the benefits to the consumer have been established. These can be measured in various ways, for example, rating on productivity, simplicity, convenience, risk, fun, image, environmental, purchase, delivery, use, supplements, maintenance, disposal etc.

These and other topics are covered in depth in the MBA dissertation on Managing Creativity & Innovation, which can be purchased (along with a Creativity and Innovation DIY Audit, Good Idea Generator Software and Power Point Presentation) from http://www.managing-creativity.com

Kal Bishop, MBA

**********************************

You are free to reproduce this article as long as no changes are made and the author's name and site URL are retained.

Kal Bishop is a management consultant based in London, UK. He has consulted in the visual media and software industries and for clients such as Toshiba and Transport for London. He has led Improv, creativity and innovation workshops, exhibited artwork in San Francisco, Los Angeles and London and written a number of screenplays. He is a passionate traveller. He can be reached on http://www.managing-creativity.com.

---

Crisis Management Tips

The term crisis management has different connotations. In this article,... Read More

The Golden Key to Meeting Success

We all attend many meetings. I'm sure you have been... Read More

What One Thing?

A few weeks ago I asked my readers what the... Read More

Motivating For Higher Performance

Employee motivation is probably the most important single manageable factor... Read More

The Seven Cs: Partnership Danger Signs - Conflict Becoming the Norm ? Part 2

A series of articles exploring the seven critical areas that... Read More

Customer Focus - Just 5 SimpleThings You Need to Think About

You can boil down the difference between successful businesses and... Read More

Lets Flourish and Prosper!

Some say that in business as in sex: if it... Read More

Executive Performance -- Whos to Blame for Incompetent Managers?

A recent article in the Wall Street Journal raised the... Read More

Whatever it Takes!

I have a sign on my office door. It pretty... Read More

Change Behaviors, Change Performance

Every organization is looking for the holy grail of performance... Read More

Punctuality in Business: What it Says About You

"Nothing inspires confidence in a business man sooner than punctuality,... Read More

Directed Introspection

One of the greatest obstacles to progress can often be... Read More

Good Idea Generation ? A Process

It seems incongruous that good idea generation can be a... Read More

Creativity and Innovation Management: Goal Setting

Creativity can be defined as problem identification and idea generation... Read More

Tales from the Corporate Frontlines: Human Resources at Work

This article relates to the Human Resource Functions competency, commonly... Read More

Balance Your Managerial Life

We have only one life, but we live in three... Read More

Managing People - Why Is It So Difficult?

Managing, supervising, being a team leader is the hardest job... Read More

Why Would Anyone Hold a Bad Meeting?

Pssst, want a stock tip that will make you rich?... Read More

Work Priorities: Where Can You Spend Your Time Most Effectively?

Understanding where you can spend time most effectively requires concentration... Read More

Industry Analysis Section of Your business plan

Writing a Business Plan for your next entrepreneurial endeavor is... Read More

Commercial Collections Billing Practices Advice

Swiftness is the key to collecting past due commercial accounts... Read More

The Power of Positive Communication

Communication is the key to your success at work, at... Read More

How To Own A Business... Instead Of A Job

Every business is run by someone who took on a... Read More

Managing Meetings

Plan/prepare - lack of purpose causes aimless meetings. Know why... Read More

Identifying Potential in Ourselves and Others

If there is someone nearby as you read this look... Read More

Time Management Tip: Stop Micro-Managing Employees

If I was a fly on the wall what would... Read More

Parenting Your Employees to Better Performance

Have you ever worked for someone who was such a... Read More

People Are Our Most Important Asset!

How many times have you heard or uttered this phrase... Read More

What to do When You receive a Bad Check

As a small business operator, personal checks may be one... Read More

Classifying Motivational Needs

While there exist several useful definitions of motivation, for our... Read More

How to Say No

Rejection hurts. No one likes to give it or to... Read More

Get Over Yourself

Let me tell you a secret.Things don't always go the... Read More

Selecting Top Talent: Improve Your Batting Average

I recently gave a presentation to a group of business... Read More