Innovation Methodologies

So much innovation focus is on improving WHAT is sold, but many major breakthroughs come from HOW things are created and delivered. Well known business model innovations include Amazon.com for books and retail items, Google for advertising, and Netflix for movie rentals.

Design thinking creates value by delivering a fulfilling experience - whether it's for end consumers or business to business customers. Improving design aspects such as shape, color, size, and placement can unlock new functionality and create an emotional attachment to the product and the brand - which can turn customers from mere buyers into advocates.

Fact-based decision making helps innovators test and prove their assumptions so they are less reliant on opinions and conjecture. An innovation must be more science than art. A set of 'operational excellence' tools will enable organizations to be more concrete in their thinking.

As more companies explore growth opportunities outside their traditional geographic markets, a process is required to understand customers, staff, and vendors throughout the world. Thinking about new offerings demands an appreciation of how the rest of the world will react - both customer and the competition.

The digital age is so-named by the rise of computers, data, and telecommunications. One result is that the world is now 'flat' and innovation occurs across vast distances and different cultures. Focusing in this area uses technology to tie together R&D processes that occur separately across the globe.

The culture of large organizations can often be anathema to innovators by forcing them to 'play by the rules.' To replicate the success of the smaller disruptors, larger companies invest in creating microcosms based on the cultures of the underdogs - often with a separate leadership structure and location.

Getting ideas is just part of the innovation process. Managing the portfolio requires focusing, evaluating and assessing ideas to determine which should move forward in the process. (The Concept Auction Tool is one way to manage the discovery portfolio!)

Open innovation creates value by bringing organizational outsiders into the innovation process. To accomplish this, ties must be made to groups outside the organization. An active effort for soliciting and seeking new concepts is required. This enables a two-way conversation to create something neither party could have created on their own.

New value can also come from improving the internal operations of the company. Research into sales, marketing, fulfillment, etc., throughout the entire supply chain can increase margins and efficiency. It could even uncover new product or service innovations.

 The intersections of adjacent markets are ripe for innovation. To understand these alternatives, companies need to find the right partners and work to create the disruptive, high-value offerings of the future. Adapting a process that seeks adjacent partner and works through the potential entanglements will lead to a better understanding and a successful product launch.

 Ideas come from people. In order to have the best ideas, people need to be nourished and encouraged. Investment is made to create a culture of innovation, using training, programs, reward systems, metrics, and office layout to develop and nurture the human potential for innovation.

Developed nations are shifting from product economies to service economies. To stay ahead, companies must be able to identify the service opportunities behind the products and know when a service is ripe for innovation. New tools and methods allow organizations to redefine their service offerings in entirely new ways to create value for customers.