March 22 nd 2012 How to Evaluate Your New Ideas The assessment - - PowerPoint PPT Presentation

March 22nd 2012 How to Evaluate Your New Ideas

The assessment process

Developing a framework to assess identified opportunities Andrew Maxwell

Seven step assessment process

• 1. Identify innovation objectives
• 2. Establish what innovation success looks like
• 3. Develop assessment using cross-function team
• 4. Use tool to assess ideas
• 5. Pick initial pilot projects and implement
• 6. Evaluate success of pilots
• 7. Re-evaluate and improve process

Disruptive innovation Application innovation Product innovation Platform innovation Enhancement innovation Integration innovation Experiential innovation Process innovation Marketing innovation Value migration innovation Line extension innovation Value engineering innovation Harvest & exit

Renewal Innovation

Organic Renewal Acquisition Renewal

Need to develop an innovation roadmap

so you know where you are and where you are going

• 9. Innovation strategies include:

, , and

Dealing with Darwin, Geoffrey Moore

• 1. Improve quality
• 2. Create new markets
• 3. Extend the product range
• 4. Reduce labor costs
• 5. Improve production processes
• 6. Reduce materials usage
• 7. Reduce environmental damage
• 8. Replace products/services
• 9. Reduce energy consumption
• 10. Conform to regulations

How do you measure innovation success

Establish innovation framework

Factor Possible Criteria Factor Possible Criteria Factor Possible Criteria

Strategy

Details

Business Performance

Details

Culture

Details Customer intimacy Embed solution in customer product Bottom line Increased revenues People Attract talent Create new markets together Increased margin Grow potential Build joint brand Lower operating costs Enhance workplace satisfaction Product leadership Faster, better Market Enhanced market share Processes Speed up decision processes New features Increase market growth Enhance opportunity identification Enhanced functionality Enable new market

• pportunities

Create new solutions Market disruption New business model Shareholder value Increase share price Risk Align incentives New way to sell Enable acquisitions Freedom to operate New market opportunity Increase acquirer interest Attitude to failure Productivity Lower supplier costs Resources Enhanced resurce utilization Management Build leadership Speedier response Partnership supply chain Foster open communication Enhanced supply chain Found opportunities Empower teams

Develop specific measurement criteria

Assessment against innovation objectives

Innovation

• bjective

Success measure ABC Rating details Create new markets with partner Embed new technology in OEM or distributor offering that provides enhanced customer value A . B C Offers significant improvement to partner offering - can not be replicated by competitor Enhances customer offering, possible partner can find alternate supplier Limited additional value to customer, can be replaced easily Improve product performance Provides significant new level

• f perfromance or functionality

A . B C Creates significant perfromance advanatge over existing offering and over competition Enhances current product perfromance to create competitive advantage Provides marginal improvement perfromance that competitors may be able to replicate Reduce product costs Reduces product costs or other cost associated with product adoption or use A . B C Signifcant cost reduction - creates compelling value proposition for new customers Create savings to current customers that enhances competitive position Provides marginal improvement in costs that may be replicated by competitors Enhance brand Provides enhanced reputation and brand A . B C Builds on and enhances existing brand reputation, such that new customers interested Reinforces decision of existing customers to work with you Provides small level of positive impact in the marketplace or with other stakeholders Improve supply chain Improves desirability of working with your company be reducing costs, improving speed or enhancing options A . B . C Creates a compelling reason for potential customers to switch to your product

• ffering Provides improved
• verall performance that encourages existing customers to collabortate

Builds small improvement in supply chain perfromance that has marginal effect Increase acquisition value Make your business more attractive to a potential acquirer (or partner) A . B . C Develop business partnerships that multiply performance potential and enhance reputation Attract key customers that make your business more valuable for its marketshare Create new revenue sources that marginally enhance bottom line profitability

Evaluate innovative ideas

Idea Evaluation

Ref Source Idea Details Benefit Timescale Resources required Measurable Outcome Strategic

• utcome

Financial

• utcome

Other

• utcome

Ranking

• Impact
• Resources
• Timescale
• Messaging and culture
• Processes and decision making
• Risk

Choice considerations