Innovation Management - idea selection and valuation issues

Innovation is different and distinct from creativity in that it is idea selection, development and commercialisation as opposed to creativity, which is problem identification and idea generation. The core issue with innovation management is, therefore, how to select those ideas that are most likely to succeed?

Ideas have to pass though an idea funnel as most organizations lack the resources to try out all their good ideas. 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.

Within the idea funnel, ideas must regularly pass GO and KILL points. Here it is decided whether an idea should remain in order to ascertain its potential or be killed off and make way for a new idea. The selection process can be difficult ? drop an idea and you may have lost that one gem; keep it in and you disallow another potentially good idea reaching fruition.

Certain ideas have more probability of success than others.

a) Some ideas will naturally have cultural, technical or other impediments. Condom use in Africa to prevent AIDS is subject to cultural taboos. Non-carbon fuel cars must beat back resistance from the oil industry. E-commerce suffers from fear of Internet fraud. Impediments can be plotted against the S-curve in order to generate a risk profile for each idea under consideration.

b) Some ideas have an inherent greater chance of success than others, depending on their origin. Franklin (2003) argues that ideas that have resulted from solution spotting ? when individuals have sought solutions for particular problems ? have a significantly greater chance of success than most other ideas. The nearest competitors are ideas that originate from random events.

This topic is 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.

You can also receive a regular, free newsletter by entering your email address at 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.

---

Recycling, Reverse Logistics and?..Candy

The candy box is a container for all your favourite... Read More

The Business Shaman: Exploring the Mystery of Success!

Note: This article was written for a internet business site.... Read More

Creativity and Innovation Management in Conservative, Staid Organisations

Conservative and staid organisations generally have a harder time implementing... Read More

Are You Ready to Sell Your Business

Make Sure You Understand Your Motivation for SellingAre you thinking... Read More

Five Strategies To Strengthen Your Company?s Financial Management

Too many businesses wait until a crisis occurs before they... Read More

Project Management 101

Project management is a very important business concept because it... Read More

Parenting Your Employees to Better Performance

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

The Compliance Officers Killer Application

It used to be that only the largest multi-nationals needed... Read More

Keep The Faith - Transform The Fear

FEAR! To what extent does fear rule your life? How... Read More

What Consultants Want You to Know (But You Never Ask)

I've been both a CEO and a consultant, so I've... Read More

How to Hold Effective Staff Meetings

Many people believe that they conduct effective meetings, when all... Read More

25 Great Ways to Find the Right People and Not Break the Bank

Are you trying to hire dozens of hourly workers or... Read More

Knowledge Management - Learning Whilst Doing - Facilitating an After Action Review

Introducing a learning culture into organisations can be difficult at... Read More

Middle Managers Behaving Badly ? How To Stop This Damaging Your Results

More and more I hear and read about a looming... Read More

A Corporate Facelift With Sound Bytes

If Baby Boomers can get botox and tummy tucks, then... Read More

Managing After Downsizing

So, you survived the downsizing. Your company did something that... Read More

Leadership Skills Means Turnover is Not a Problem

"Ha!" you say. "For someone to make a statement like... Read More

The Inferno of the Finance Director

Sometimes, I harbour a suspicion that Dante was a Financial... Read More

How Your Business Can Pick A Software Developer

Eventually, your business is going to need to have some... Read More

The Power of the Contract in Performance Management

An essential step in managing the performance of salespeople is... Read More

The Professor Makes A Minus Power Move

If you think the power move has costs, consider the... Read More

The Myth Of Relationship Selling Revealed At Last

The second you quit being the 'best deal' for your... Read More

Where Else in Your Business Do You Accept a 60% Failure Rate?

I recently surveyed CEOs and Business Leaders of large companies... Read More

How to Create a Trusting Manager-Employee Relationship

BUILDING TRUST AS A MANAGER: 1. Be reliable. Follow through... Read More

How To Jump Start Your Profits and Keep Your Profits Rolling

There are so many ways to jump start your prifits... Read More

Group Decision Making : Are the Decisions Really Made by the Group?

GROUP DECISION-MAKING: Many managers feel they are well-versed in areas... Read More

Why You Need a Business Plan

This article was originally called "Do You Need a Business... Read More

The Higher You Go

The higher you go, the cooler it becomes. Really? Let... Read More

Problem-Solving Success Tip: Use Your Time for Problems that are Truly Important

Use your time for problems that are truly important.Hard as... Read More

Employee Success! - 7 Ways Feedback Works

By sharing how well you are doing and how well... Read More

Profits and Business Success - 5 Profit Traps to Watch Out For

The old saying 'You have to spend money to make... Read More

The 6 Steps to Six Sigma

Step 1Get the proper level of Six Sigma expertise at... Read More

Invoice Factoring for Goverment Vendors

Assignment of Claims Act of 1986"....What does this mean for... Read More