Innovation Hot Spots

While innovation is often associated with new products, new gizmo-gadgets, a broader perspective shows innovation occurring in many areas of a business and often has little or nothing to do with products.

Here are some key areas of innovation opportunity for a business venture ...

1. Products (yes, still high on the list, of course!)
2. Services
3. Processes
4. Business methods
5. Business model
6. Revenue model
7. Positioning (relative to the competition)
8. Paradigm (a combination of several innovation areas)

Mission Statement ... The Critical Success Factor!

The world changes ... client needs, wants, desires; competitive offerings; economic environments; et alia.  

Every organization must proactively address change if it is to survive and thrive.  The four elements of the Critical Success Factor are excellent focal points for potential innovation in an organization.  

The Critical Success Factor statement is also an excellent Mission Statement template.

Tips for Picking the Right Opportunity

1. You and your team are passionate and persistent ...
2. Your team has or can learn the skills needed ...
3. Your team can collaborate and cooperate ...
4. The problem is clear ...
5. The customers are readily identified ...
6. The market is significant ...
7. You have a feasible solution ...
8. The competition is identifiable ...
9. Your solution has better and sustainable benefits ...
10. Your solution can generate a sustainable profit ...
11. Your venture is timely, important, legal ...
12. Your venture can build barriers to entry ...
13. Your concept is scalable ...
14. You'll invest less time, money, and effort in the venture than it will be worth in a couple of years ...
15. If the opportunity turns out to be less than favorable, you can exit with minor losses ...
16. Risks can be mitigated ...
17. The upside potential is significant and timely ...
18. Your team has a clear plan for success ...
19. Your team can find the resources needed ...
20. You and your team are committed to success ...
21. The opportunity has a potential for long-term success ...

Catergories of Innovation

Innovation has a revolutionary reputation, but an evolutionary reality!  

An innovation is (simply) Something New and Better ...

• Something: a product, service, process, methodology, or market positioning. 
• New: didn't exist before in this market space.
• Better: desirable benefits, a lower price, or both ... compared to the available alternatives.

That's not to imply that the innovation process is simple, by no means!  It can be quite complex, even if the final result doesn't necessarily reflect such.

Some types of innovation are pretty simple, pretty straight-forward. A new hot dog stand on a corner can be an example of "positioning" innovation ... simple, yet it does provide something new and better.

Other innovations are indeed quite complex and required high levels of intellect, resources, skills, education, and expertise.

Here are some general categories of innovation:

1. Incremental … basic design concepts are reinforced, linkages between modules are unchanged
2. Component or modular … basic design concepts are overturned, linkages between modules are unchanged
3. Architectural … linkages between modules are changed, basic design concepts are reinforced
4. Radical … basic design concepts are overturned, linkages between modules are changed
5. Disruptive ... technological discontinuity
6. Application ... technology application creates new market ... killer application
7. Product ... improved performance, dominant design
8. Process ... more efficient and/or effective processes
9. Positioning ... establishing a venture in a new space
10. Experiential ... improved customer experience
11. Marketing ... improved marketing relationships
12. Business model ... reframe the value proposition or value chain
13. Structural ... responds to structural changes in the industry
14. Service … give the same products but with much better service
15. Paradigm ... good luck! If we want a paradigm shift, we'll need a solid combination of several simpler innovations!

Sources of Innovation Opportunity

1. The unexpected success, failure, or outside event
2. The incongruity between reality as it actually is and how reality is perceived
3. Innovation based on process need
4. Changes in industry structure or market structure that catches everyone unaware
5. Demographic (population) changes
6. Changes in perception, mood, and meaning
7. New knowledge, both scientific and nonscientific

[Thank you, Peter F. Drucker]

10 Tips for Launching a New Venture

1. Don't wait for a revolutionary idea ... it will never happen ... just focus on a simple, exciting, empty space and execute as fast as possible.
2. Share your idea ... the more you share, the more you get advice and the more you learn ... meet and talk to your competitors.
3. Build a community ... use blogging and social software to make sure people hear about you.
4. Listen to your community ... answer questions and build your product with their feedback.
5. Gather a great team ... select those with very different skills from you ... look for people who are better than you.
6. Be the first to recognize a problem ... everyone makes mistakes ... address the issue in public, learn about and correct it.
7. Don't spend time on market research ... rather, launch test versions as early as possible ... keep improving the product in the open.
8. Don't obsess over spreadsheet business plans ... they are not going to turn out as you predict, in any case.
9. Don't plan a big marketing effort ... it's much more important and powerful that your community loves the product.
10. Don't focus on getting rich ... focus on your users ... money is a consequence of success, not a goal.

[Thank you, Loic Le Meur]