Business Tips: Turn a great idea to Money spinner
According to US innovation guru Mark Payne,
the ideas failure rate is around 90%, and as someone who has made a living out
of helping organizations work out why their ideas have failed and how to make
them work, he should know.
His firm, Fahrenheit 212, has worked with a
string of major brands including Starbucks, Coca Cola and Samsung, and in his
book ‘How to Kill a Unicorn’ he recounts some of the flawed approaches to
innovation - outwardly good ideas that for one reason or another couldn’t
translate into revenue – that he encountered along the way.
So what makes one idea turn into a major
money-spinner while others turn out to be flops? Whatever the secret of
successful innovation is, one thing Payne is clear about is that company size
has nothing to do with it.
"Whether your company is large or small,
the reasons why ideas fail are the same – but, because they don’t have the
massive resources of large organizations, smaller businesses can’t afford to
get innovation wrong," he says. "They need to make the right
decisions and stick to the rules, starting with the brainstorming
process."
Get tough with new ideas
Brainstorming sessions typically focus on
generating high volumes of thoughts and suggestions, many of them quite
ridiculous, that are greeted with polite smiles and encouraging nods from
others in the session. What these fledgling ideas should really be
subjected to is some tough scrutiny, says Payne.
"Giving ideas tough love through some
tough questions early on will help to ensure they can survive in the real
world. If you don’t ask those tough questions, you end up with very little that
is of any use. Brainstorming should be about focusing on a few concrete
outcomes, rather than a lot of possibilities," he says
Innovation is a two-sided concept
Two-sided innovation solves the needs of the
consumer and the needs of the business in real-time. It is a simple premise,
but one that many businesses get wrong because they tackle the two things
separately.
"You lay out all the issues and problems
that your customers and your company have raised, side by side, and you look
for connection points," says Payne.
For example, your business might aspire to a
more premium price point while your customers are looking for something a bit
more special.
"That is your touch point and immediately
you have transformed your probability of successful innovation. It means
understanding what the company needs, not just at the endpoint, but throughout
the entire journey."
Don’t shy away from the big challenges
Small businesses and start-ups are naturally
inclined to focus on small scale ideas, but Payne’s advice, when it comes to
innovation, is that it can pay to think big.
"Big problems that need solutions aren’t
necessarily the hardest problems. Big is a problem that a lot of people face, a
lot of the time, and care about. Small problems, that might appear easier to
try to solve, matter to a few people, rarely," he says.
Encourage cultural creativity
Without a genuine culture of creativity,
innovation stands little chance of succeeding.
Many of today’s start-ups are forged from
collaborative, free flowing creativity that provides the ideal medium for
successful innovation. But in businesses where a more conservative and
traditional culture prevails, resistance to creativity and change can be one of
the biggest barriers to innovation.
Cultures can be changed, albeit slowly,
however, successful innovation needs the right resources, the right teams and the
right mix of people on board.
Payne says: "Different people in
different roles have different approaches to innovation. What you want is an
even balance of highly inventive and creative types, and sound strategic types;
people with good operational and financial capabilities and you have them
collaborate, right from day one."
Nobody knows what the next big business idea
will be, but a more stringent innovation process will certainly boost the
chances of creating more business ideas that pay.
Via Virgin
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