Working on an innovation project requires the capacity to synthesize ideas and evaluate them well. An ideal selection of ideas involves choosing the most effective ones regarding what the company is intended for in its segment and regarding the needs of its public. In this process, the most adequate ideas are selected and the other are worked upon, discarded or integrated to others so that they become a new concept.
Companies which have a team with excellent capacity for innovation usually have a good ability of generating multiple ideas. The first concepts go through some sort of ”fine-tooth comb” and their accordance with the company’s strategic planning is evaluated. Only after this process, selected ideas and their first steps start being acted upon.
In this post, we will explore what the basic requirements are for an idea to be selected for an innovation process. Check it out!
Does your idea solve a relevant problem?
When the idea goes through the fine-tooth comb phase, it is not the concept in itself that is evaluated, but its features. What problem does your idea solve? Will it make a difference in your user’s life? Will it bring a differential advantage? What are the current solutions for solving this problem? The analysis of these questions takes us to the next topic.
Does your idea solve the problem better that the existing solutions?
In innovation, it is assumed that the selected idea solves a problem in a more efficient way that the other current solutions in the market. More than efficiency, it is important for the solution to be cheaper and more accessible. But, for the idea to represent innovation, it needs to have a potential for replicability and technical viability. There must also be the necessary technology for it to be implemented.
Does your idea deliver a consistent business model?
For an idea to be consistent, it cannot simply solve a problem in a different way. You will not sell the difference for itself, it is necessary to create a business model for that idea to be economically viable. It must present some sort of well structured way to deliver, capture and create value.
Is a potential financial return presented?
As we have seen, for a good idea to be complete it is necessary for it to create value. So, when it gets to a pilot stage, it is important for it to have a financial return analysis.
In order to more clearly evaluate the risk of the project, it is essential to plan income, the need for working capital, investments, VPL, cash flow and payback. The financial analysis is a great tool for the final stage of selecting an idea and directing it. This way it is possible to know the parameters which can be changed in order for the idea to fit the company’s budget without losing its capacity for innovation.
Idea selection is a very important stage for improving innovation in a company. At the beginning, the process is mechanical and guided, but the tendency is for it to become more and more fluid and become a part of the company’s culture. For it to be possible, though, it is important for employees to be completely aligned and for the right tools to be used. Companies which do not have an innovation team can look for advice from experts in the field.
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