What is your innovation selection strategy?
By Paul Sloane
In our MDG framework, we strongly advise clients to develop a set of Decision Criteria that aligns the decision team on what is important and telegraphs to whole company what will be the driving force for resourcing new initiatives. The Decision Criteria sets the conversation across the company. I thought the flowing is an interesting mix of criteria:
1. Does it meet our corporate vision and business strategy? This is a good generic criterion but it can be too broad to give you much help in choosing a specific product to invest in.
2. Can we master the technology? If there is a new technology or system that you can harness then you can look for a technology-led innovation
3. Does it meet a customer need? This is probably the best known and most effective way to select new product developments
4. Can we make money quickly? Also known as the low-hanging fruit approach. We look at adjacent products or markets where we believe that we can make money by developing or acquiring a product. This tends to be incremental and tactical rather than strategic and is sometimes harder to accomplish than it first appears
5. Does it take us into the Blue Ocean? You draw value curves for your offering and those of your competitors. Often the curves are remarkably similar. Then you ask whether you can differentiate your proposition by bringing out a product that offers dramatically more or less in some of the feature areas
6. Does it go where the brand leads? A brand is a promise. So ask how can your brand promise can be developed and fulfilled