More Ideas is Not Better

June 16, 2015 · Posted in business, entrepreneurship, innovation · 3 Comments 

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Monkeys-on-TypewritersI got an ad emailed from a company claiming they set the world brainstorming record by generating 454,000 ideas in one hour with 8,000 people. Let me ask you, how many of those ideas were good?

How many of those ideas are things you could profitably deliver? How many just plain stink.

If you had 8,000 people spitting out random ideas for an hour, how many do you think were the same? I would say most were pointless differences such as a shade of a color, basically copies. Even if all 454,000 were unique, is that all the important ideas for the specific need? If not, was the best idea found or is it still sitting out there undiscovered?

How long will it take to weed through half a million ideas? Can you test 454,000 ideas? How much would that cost? How much time and money would that waste?

More ideas doesn’t equal better ideas. More certainly doesn’t mean the best idea.  Your time is the most precious resource you have. You want to get the absolute most value from your time. You need to pin point the correct idea and all the valuable connected ideas immediately so you can deliver without pausing. You need to see in advance what customers want and how to profitably deliver it with readily available resources.

That last sentence is a phrase I use to promote Predictive Innovation but its true, isn’t it. If you wait to react you already lost time before you start. If you work on things you don’t have the resources to complete you waste time & money hitting dead ends or scrambling for the missing pieces when you could be delivering value.

I realize the reason people randomly throw stuff at the wall hoping something sticks is because they don’t know a better way.  That’s sad. Have you felt that way? You can do better. I want to help you do better.

What does better mean? It means starting with a reliable way to measure the value of each idea before you have the “idea”. Then a way to draw a boundary around all the relevant ideas so you know what is in and out. Perhaps more importantly see what you missed. Plus have all the ideas organized so you can quickly pinpoint the most valuable great ideas and how they are connected. That maximizes the value and minimizes the risk. Does that sound like what you’re looking for? Can you see how much better that is?

If you want to be part of a new group I’m forming to help entrepreneurs find and successfully launch great businesses and non-profits signup so I can keep you informed.

Protected: How many types of innovation are there?

February 11, 2014 · Posted in business, innovation · Enter your password to view comments. 

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Reducing Business Risk: Predictive Innovation Method

January 17, 2010 · Posted in business · 1 Comment 

Every investor is concerned about risk. How do you accurately assess the risk of an innovation investment? Can you calculate an Innovation Quotient to measure it? How do you control your exposure to the risk? Can you reduce your risk and still maintain desirable profits? Yes, with the Predictive Innovation Method.

All traditional methods of risk management assume you can’t truly measure risk, thus you just try your best to reduce the impact of risk. Techniques such as diversification, or stage-gate assume you can’t measure the risk and must resort to trial and error. Basing your decision on past results also is inadequate, especially when dealing with innovation. As the disclaimer states, “past performance does not guarantee future results.” Any real innovation has no past performance; it’s new, that is the point.
Predictive Innovation Method reduces or eliminates the three sources of risk.

  • Will the customers buy it?
  • Can you profitably make it?
  • Can you beat the competition?

The Predictive Innovation Method first converts customers’ subjective desires into precise objective outcomes. This allows you to measure how well each idea satisfies the current and future desires. This is essential because releasing a product too soon is as dangerous as too late. Once you have an outcome diagram you don’t need costly surveys. You can actually measure how well your product meets objective requirements.

The next step of Predictive Innovation Method shows you how to profitably make it and beat the competition.
All the solutions to any problem can be described by a set of 7×15 Alternative Matrices. Each of the 105 boxes in the Alternatives Matrix is an approach to solving the problem or satisfying the requirement. These 105 types describe every solution even if current technology can’t yet build it.

Since you can describe all the solutions there is no risk. You simply look at each alternative and choose the one that works. Plus you have every response to competition laid out ahead of time. You can design your product and business strategy so you can easily shift from one solution to the next always staying ahead of competition.

Perhaps best of all, you can accurately measure the risk and reward with an Innovation Quotient. Each box of the Alternatives matrix for each Outcome is an innovation. Some of them are on the market, others are Blue Ocean waiting to be developed.
To calculate risk, simply count the number of untapped boxes and divide by the total for an Innovation Risk Quotient. The higher your Innovation Risk Quotient the greater your chance of success.

To calculate value, use normal market size and value methods for each box then sum the available boxes. This is the real total available market. Since you already have detailed descriptions of each innovation you can accurately estimate cost providing you with Return On Innovation.

Predictive Innovation Method Maximize profits, Eliminates risk, and neutralizes competition.

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