innovation leadership training day four idea evaluation february 20, 2009 all materials ©...
Post on 20-Dec-2015
212 views
TRANSCRIPT
Innovation Leadership TrainingDay Four
Idea Evaluation
February 20, 2009
All materials © NetCentrics 2008 unless otherwise noted
Welcome• In this section of the innovation process
training we’ll examine the steps necessary to establish a consistent idea evaluation and further investigation
What We Want to Accomplish
Goals for this section
• Our goal this section– Establishing an evaluation method and standard
criteria– Identifying the appropriate evaluators– Creating a business case for selected ideas
Key Points• Once an initial selection is accomplished, the
ideas must be evaluated against standard evaluation criteria– These criteria have to be established and documented
• After the evaluation, the team should identify the most promising ideas for further investigation– This may include rough prototyping or the
development of a business case
Selection Bias
• There’s an important selection bias to avoid at this point – downselecting too early to one or two ideas rather than continuing to investigate a number of ideas
• At this phase of the process it’s simply too early to place all of your focus on one idea – without the deeper investigation of a business case and prototyping, you may discard viable ideas in favor of one that looks viable but has hidden flaws
Evaluation
• It’s important to establish and publish a consistent set of evaluation criteria for ideas– This demonstrates that all ideas receive equal treatment– Standard, published criteria help idea generators understand how
ideas will be evaluated and selected– Evaluation teams can become accustomed to a common set of criteria
and can compare ideas against each other
• These criteria need to be developed before the evaluation begins and remain consistent across a number of ideas
Iterative Evaluations
• In most cases you’ll want an iterative evaluation process– The “first pass” is simply to weed out any ideas
that are outside our scope or are infeasible– The “second pass” may create a business case
document with more detailed financials
Consistent Evaluation
Three domains
• We need to evaluate the idea against three “domains”
FeasibleTechnical Domain
DesirableCustomer Domain
ProfitableFinancial Domain
Success
Evaluation Criteria• Opportunity: How large is the market, how “open” is the market window and how many competitors?
– 1 – small market/many competitors– 2 – moderate market size/some competitors– 3 – large market/some competitors or niche/no competitors
• Feasibility: Can we do this with existing capabilities and technologies or will we need to gain or partner for those skills
– 1 – must partner for or invent the capability– 2 – near term capabilities– 3 – existing capabilities
• Distinctiveness: Is this the first instance of this concept in this market, or are we creating a new market?– 1 – Fast follower– 2 - First instance of the idea in the market– 3 - Creates a completely new market
• Market Impact: What impact does the idea have in the market? Acceptance, forcing others to change, or making some other product or service obsolete
– 1 – Customer acceptance– 2 – Forces competitors to change or react– 3 – Makes another product or service obsolete
• Consumer Impact: What impact does the idea have for the consumer?– 1 – solves a basic need– 2 – provides an improved benefits– 3 – provides unexpected benefits
Consistent with a “positive bias” the team approves most ideas rather than seeking to kill them early in the process
Initial Evaluation
• The criteria demonstrated previously is a recommended “first pass” evaluation that can quickly “score” an idea and help prioritize it against others in the queue
• Note the concept of “positive bias” – this is included to remind the team not to kill ideas too quickly and narrow the pipeline of ideas dramatically too early in the process
• Note also that we don’t recommend too much emphasis on “profitability” yet
What’s necessary for evaluation?
• When we are evaluating an idea we need:– A consistent presentation of an idea– All the relevant data available about the idea– The evaluation criteria necessary to consider the
idea– A team of people who can evaluate the idea,
usually from different backgrounds or perspectives– A “score” for the idea– The ability to capture the evaluation
Outcomes
• In this or any evaluation, a number of outcomes are possible:– Continue evaluating the idea– Launch the idea– Create a business case for the idea– Conditions not right – shelve the idea– Stop/Terminate due to many reasons
Business Case
• The deeper evaluation and investigation of an idea often results in developing a business case
• In this phase we build a business model for the idea– Market size and sales opportunity– Projected Revenues– Costs to build and market– Channels– Risks– Competitors
Presentation to Selection Team
• A standard business case for an idea is presented to the steering team or a selection team who can evaluate the opportunity and decide to move forward with further investment
• At this point the idea may need to be “adopted” by a sponsor or assigned to a specific business unit or the central innovation team.
“Packaging” the idea
• While the steering team may be familiar with the idea, you’ll need to consider the appropriate “packaging” for the idea– Unmet need or opportunity– Recommended new product or service– “Elevator pitch”– Value proposition for the idea– A recommendation from the team– An identified adopter or sponsor
Leaving this phase
• At the end of this phase, the idea has been evaluated
• In some instances a business case has been developed
• The outcomes are:– Proceed to commercialization– Proceed to prototyping– More research/investigation required– No further action
Key Takeaways
• Define the criteria for the idea evaluation as early as possible and use consistent criteria whenever possible
• Use an iterative evaluation process to weed out ideas and dive deeply into ideas that pass the initial screenings
• Begin to map ideas to departments or sponsors who can “own” the idea after evaluation
Questions?