4 Guides to Test the Feasibility of Your Innovation
“Innovation is the specific function of entrepreneurship, whether in an existing business, a public service institution, or a new venture started by a lone individual in the family kitchen. It is the means by which the entrepreneur either creates new wealth-producing resources or endows existing resources with enhanced potential for creating wealth.” Peter Drucker
The future is fast approaching and we are right in the middle of tremendous change and opportunity. The tools needed for creating a grand future are in the hands of almost everybody. The “Goggle Library” and “You Tube” university provide all the knowledge we need to create new products and services to benefit society.
If you have a big dream and vision it would help to test it against a few attributes to determine the viability of your idea. There are many ways to evaluate your project. Here are just a few attributes to consider. According to Branden Kelley in “Innovation is All About Value” “Innovation transforms the useful seeds of invention into solutions valued above every existing alternative..and [is] widely adopted.”
The first test could be to determine if your innovation falls within one of the seven areas of innovation as defined by Peter Drucker.
1. Unexpected conditions, such as natural disasters, an unexpected previously reliable national, local or industry system failure.
2. Incongruities in system, process, operation or efficiencies such as incongruities in an educational system.
3. Incongruities between expectations and results such as found in many customer service processes. These process needs can be exploited, simplified or redesigned for your particular industry.
4. Demographic changes. Opportunities are available because of changes in numbers, age distribution, education, occupations, location and technology. Such as millions of people being out of work because of artificial intelligence or robots.
5. A change in the way people perceive a service or product. According to Drucker “A change in perception does not alter facts, it changes their meaning…It [this perception] can be defined, tested and exploited for innovation opportunity.” Such as a change in the perception of the value of computers over time.
6. Rapid industry growth. Changes are occurring at a faster rate than large businesses can handle. This gives the startup or entrepreneurial venture a real advantage. They can enter the market without competition for long periods of time.
7. New knowledge, in the areas of science, technology or sociology offer tremendous opportunities for innovation. Customer awareness and acceptance are the basic challenges when implementing knowledge based innovations
Therefore, the second test is to determine if the innovation is valuable to its potential customers. All types of market research is available to help you assess potential customer value. For example, will your product or service simplify or improve the customer experience in an industry?
The third test is to determine if the innovation is simple enough and small enough to implement. According to Drucker “To be effective, an innovation has to be simple, and it has to be focused. It should do only one thing; otherwise it confuses people. Indeed, the greatest praise an innovation can receive is for people to say, ‘This is obvious! Why didn’t I think of it? It’s so simple!’ Even the innovation that creates new users and new markets should be directed toward a specific, clear, and carefully designed application. Effective innovations start small.”
The fourth test would be whether or not potential customers already know the value of your innovation or will you need to educate and convince them of the value of your offering. Example, many education officials may not realize the preeminence of the ability to read and adopt continuous learning (as a set of skills) because of the ever increasing speed of change. Consequently, they may not realize the inherent value of any innovation around this skill set
Change is an inevitable force in our dynamic environment. Don’t fight it. Knowing how to manage change as an opportunity for innovation as you grow your small business will be a valuable skill that will put you far ahead of your competition. If you are unprepared for change, you could face disastrous business results. Human nature resists change. That’s the first obstacle you must face. Now also consider this, when building a sustainable enterprise one of your priorities should be to consistently engage in Proactive Innovation. In other words, you’re causing self imposed change. This greatly increases the change your enterprise will encounter. So how can you survive with this much change surrounding you? First of all, you must adopt the perspective that you willefficiently handle the uncertainty in this dynamic environment while initiating Proactive Innovation considering the feasibility tests as described above. You can, if you keep a Change Management framework in mind as you move through these circumstances. Next, your Purpose/Mission must be strongly shared throughout your venture. Additionally, your Values must be the principles used to operate everything in your venture. If they are not in place, managing any kind of change will be difficult.
Consider these guides and recommendations to enjoy successful innovations.
For foundation building see “20 Directives for Small Business Success: Do or Die“
