I have spent a great deal of time over the last couple of years thinking about the process of innovation, different types of innovation, and how to innovate in a small but established organization versus a startup organization. I was reading Innovator’s Dilemmas: Do You Really Need To Be Disruptive? over on consultaglobal this weekend, and got to comparing some of Jose’s thoughts with work I have done in the last year.
As Jose says in that post, he is more interested in the process of defining a product roadmap in terms of gradual innovation, and in managing product portfolios. We have been very successful with this type of innovation, having a strong product management process for our existing product suite. In my role, I have been more interested in how we do larger scale innovation – how do we come up with the innovations now which are going to drive our growth 2+ years from now?
I have defined an innovation cycle as shown below.
Recognizing that disruptive innovation is, well, disruptive, as this cycle is traveled counter-clockwise starting from the upper right, we go from a high-chaos, low-process environment to progressively higher process and lower chaos.
In this model, the upper right quadrant represents what we are really good at, evolutionary innovation driven by product management. The upper right quadrant represents the starting point – the idea generation engine. This is traditionally a hit and miss process of collecting ideas from various parts of the organization (or just a few people), and trying to pick which ones to invest time and money in. It is my belief that this activity can be wrapped in a process without destroying the creativity needed to really come up with ideas. Among the activities I consider important in this quadrant are:
- Establish some context for innovation (see this earlier post)
- Get ideas from everybody, not just R&D or Product Management
- Get out and talk to customers
- Involve your staff who are in front of customers, especially professional services people if you have them
- Engage in structured/facilitated brainstorming with groups from various cross-sections of your company
- Know how you are going evaluate ideas and decide which ones to investigate more deeply
The last point is important – it is no use having lots of ideas if you have no way to evaluate them. No organization can go deep on all the ideas generated, and a small organization can only really attack a couple. See this earlier post for my thoughts on using the Needs, Approach, Benefits, Competition (NABC) approach. At the end of this stage, and ideas should have a reasonable Needs definition, with a rough indication of the other three categories.
The next quadrant is what I have called Play. This is where ideas which survive the evaluation in the Ideas stage and start to play with them, flesh them out, create prototypes, and generally move the NABC definition forward. Early in this phase, the Approach needs to be clarified, while the Needs are evaluated more deeply. Later in this stage, if a viable Approach is identified, and the Needs continue to make sense, then the Benefits and Competition need to be addressed (note that in reality, it is never anywhere near this linear, but this is for the benefit of description). By the end of this stage, we should be able to present a fairly strong value proposition for those ideas which have survived the process.
The next stage is to Build the products (ok, probably only one) for which the value proposition seems best. I will not get into the build process, except to say that the NABC analysis should be kept at the forefront throughout the process, and not be afraid to make hard decisions if things stop making sense.
The final stage is the Evolution stage, where the product moves into the incremental, evolutionary development cycle of a completed product. Note that for a new product, there may be some iteration between Build and Evolve.
Finally, the cycle is closed by having ideas from ongoing product evolution feed back into the Ideas stage.
So, is it ever this neat and clean and linear? Well, no. But that does not mean it is not valuable to have a model which you at least pretend you are following!