There are distinct processes that enhance problem identification and idea generation and, similarly, distinct processes that enhance idea selection, development and commercialisation. Whilst there is no sure fire route to commercial success, these processes improve the probability that good ideas will be generated and selected and that investment in developing and commercialising those ideas will not be wasted.
There is often much confusion between the three stages of innovation.
Idea selection seems to be pretty straightforward, and it is. Here, a critical frame of mind is used to reduce a quality idea pool into feasible ideas. Critical thinking is opposed to creative thinking – where we use logic, reason, conservatism, feasibility and practicality to select the best ideas.
But often more than one good idea is generated. In fact, more than one good idea needs to be generated. The Economist (2003b) states that 3000 bright ideas are needed for 100 worthwhile projects, which in turn will be winnowed down to four development programmes for new products. And four such development programmes are the minimum needed to stand any chance of getting one winner.
Thus the next stage of innovation, development, involves deciding between all the good ideas. Until now, good ideas are really just only good ideas. By pushing them through stage gate processes, tinkering, experimenting, prototyping and conducting market research, it can be decided which of the good ideas are really great and worth investing in further.
Commercialisation starts at the tail end of development. With four development programmes (as per the above example), other teams and competencies become more heavily involved – marketing, pricing, sales and distribution.
Kal Bishop, MBA
Innovation Management And New Product Development
There are distinct processes that enhance problem identification and idea generation and, similarly, distinct processes that enhance idea selection, development and commercialisation. Whilst there is no sure fire route to commercial success, these processes improve the probability that good ideas will be generated and selected and that investment in developing and commercialising those ideas will not be wasted.
However, Franklin (2003) argues that even great ideas developed and commercialised brilliantly may fail to succeed due to cultural, emotional and habitual barriers. Even obviously cheaper, simpler and more effective ideas fail to take off.
Whilst there are systems such as the S-curve that help predict and determine the magnitude of these barriers and hence the risk of successful commercialisation, the very nature of them makes them very hard and pin down in any quantitative or qualitative analysis.
The strength of cultural, emotional and habitual barriers can be illustrated by the examples below:
a) 11 million people have died of AIDS in Africa. Yet there is a taboo against condom use.
b) The metric system is obviously a great system and used almost the world over – except in the United States.
c) The ATM – cash point machines – initially failed to take off because people believed that they did not have the right to access money so easily.
d) Scurvy was prevalent for years and the cure – lemon juice – was known, yet was not recognised as a legitimate cure for centuries.
e) Sewage systems are only today being adopted in rural and poorer parts of the world.
These 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.
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