Are you ready for the Formal Process?

There are several key concepts that a team must understand before their corporation is ready for the Formal Process, and innovation is arguably the most important of these concepts. A corporation is not ready for formal development until the value of the innovation is understood. An effective innovation strategy should identify ideas that are easy to conceptualize and process. Breakthrough and disruptive innovations are not easily found, and require advanced understanding of the value proposition through a discovery process that challenges the conventional wisdom of what can be accomplished. This takes commitment to a discovery effort above and beyond what is entailed in a typical sustaining innovation effort.

The innovation process covers all activities from idea evaluation to the creation of a business model, and all of the stages in between. There is an opportunity cost to every stage executed by the corporation. Once resources are allocated, they are not available for other projects unless a different product development is halted.

For potential breakthrough or disruptive innovation, the following points are necessary:

  • an early collaborative approach to understand and define the potential economic value
  • the amount the customer would be willing to pay
  • feasibility of external and internal technology development
  • a potential product/service roadmap
  • competitive alternatives to create a “draft” innovation which ranks the risk reward ratio of the “candidate” innovation

These items provide a conceptual format and perspective on the long term impact to the corporation’s innovative process. Once the “candidate” innovation is adequately described in risk-return and strategic value, a second effort will be necessary to build internal support for insertion into the Formal Process.

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