The relative ease of i) generating good ideas and ii) lack of resources mea that there are usually more good ideas available than can be succe fully i ovated. As a result, it is often the case that ideas must be evaluated for risk and reward in order to select those that are most likely to succeed.
Part 2 of Good Ideas Creativity and I ovation Management - will briefly discu the concept of fit. An idea may be a good one, but does the person or firm that generated it have the ability to succe fully bring it to market?
To provide a simple measurement and relative value of ideas, the following three criteria can be rated (or further analysed and rated):
a) Strategic fit. Katz et al (2003) argue that an idea must fall in line with the organizatio strategy. If Hewlett Packard (for example) were to suddenly attempt to develop soundle Velcro, non-fo il fuel cars or a sonic screwdriver, the chances increase that i ovation of those products would conflict with their existing strategy and divert resources, thus increasing the risk for all product lines. Stick to the knitting is a common expre ion, though diversification can bring benefits.
b) Does the firm have the technical expertise to make it work? If HP were to take up non-fo il fuel cars, then that would involve significantly different technical competencies than they already have in-house. Whole teams with different skill sets and experiences would have to be brought in.
c) Do the busine competencies exist? These include competencies in marketing, new product development, the ability to manage widely scattered employees and facilities etc. Does the big idea justify the expe e?
In conclusion, a multitude of criteria must be co idered and evaluated for risk and reward before big budgets are ent bringing the product to market.
This topic is covered in depth in the MBA di ertation on Managing Creativity and I ovation, which can be purchased (along with a Creativity and I ovation DIY Audit, Good Idea Generator Software and Power Point Presentation) from http://www.managing-creativity.com. You can also receive a regular, free newsletter by entering your email addre at this site.
Kal Bishop, MBA
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You are free to reproduce this article as long as no changes are made and the author's name and site URL are retained.
Kal Bishop is a management co ultant based in London, UK. He has co ulted in the visual media and software industries and for clients such as Toshiba and Tra ort for London. He has led Improv, creativity and i ovation worksho , exhibited artwork in San Francisco, Los Angeles and London and written a number of scree lays. He is a pa ionate traveller. He can be reached on http://www.managing-creativity.com.
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