In business, Innovation is like the secret weapon for business success or the superhero who saves the day. It's not just a buzzword; it's the key to staying ahead of the game.
Unfortunately, many businesses miss the innovation train because they think it's rocket science – expensive R&D labs, high-tech gadgets, and scientists in white coats. But here's the truth: Innovation isn't about all that. It's about simple, clever ideas that make a significant impact.
In other words, Innovation is about thinking differently, not spending extravagantly. It's not about having the most enormous budget; it's about having the best ideas. For example, encourage your team to share ideas, no matter how small. Or, foster a culture where trying new things isn't just okay, it's celebrated. The companies that innovate effectively are the ones that thrive.
In this post, I would like to share with you how to run a strategic innovation tournament in your company so that you can make Innovation the source of your company's competitive advantage.
Ready to innovate? Here is the structure of this post.
Contents
1.1. Definition of Innovation
1.2. Various Forms of Innovation
1.3. Innovation's Dual Impact: Generating Value and Reducing Costs
1.4. Typical Misconceptions about Innovation in Business
2.1. The Importance of Innovation in Business
2.2. Examples of Innovation in Business:
2.3. Winning Innovation Makes Fortune
2.4. How to Organize Business for Innovation
3.1. Idea Generation
3.2. Idea Rating
3.3. Idea Screening
3.4. Idea Refinement
3.5. Business Model Analysis
3.6. Prototype Building and Experimentation
3.7. Business Case and Action Plan
3.8. Investment Decision
3.9. Launch
4.1. Inspiration from Existing Technologies
4.2. Inspiration from Unmet Needs
4.3. Inspiration from Market/Societal Trends
4.4. Insporation from New Technologies
4.5. Inspiration from Employee Inputs
4.6. Inspiration from Customer Inputs
4.7. Inspiration from Customer's Journey
5.1. Change Elements of Your Business Model
5.2. Adopt Different Revenue Models
5.3. How to Improve Your Odds of Finding Winning Ideas (based on Statistical Principle)
6.1. Tool for New Product/Service Innovation: Functional Decomposition
6.2. Tool for New Business Model Innovation: Business Model Decomposition
6.3. Tool for Screening Innovative Ideas: The RWW Method
6.4. Tool for Improving Existing Product/Service: Product and Architectural Decisions
6.5. Tool for Designing New Prototype: Prototype Design Principles
6.6. Various Useful Practical Tools for Innovation in Business
7.1. Elements of Business Model Canvas
7.2 How to Use Business Model Canvas for Innovation in Business
8.1. Describe the Business Opportunity
8.2. Give it a Fancy, Memorable Name
8.3. Explain What Makes Them Novel
8.4. List All Potential Competitors
8.5. Highlight What Differentiates Your Idea
8.6. Outline Your Business Model
8.7. Don't Forget to Practice
9.1. Four Types of Names
9.2. Practical Techniques for Naming
1. What is Innovation
Innovation is the secret sauce that propels businesses forward. By constantly asking, "How can we make this better?" and embracing Innovation in various forms, organizations create value for their customers and find more ingenious ways to operate, reducing costs and ensuring long-term success in our ever-changing world.
1.1. Definition of Innovation
Innovation is all about finding fresh ways to create value. It's not just about doing things differently; it's about doing things better. When we innovate, we're actively seeking new ideas and approaches that bring something valuable and beneficial. Innovation is the key to making things more valuable, efficient, and impactful.
1.2. Various Forms of Innovation
Innovation comes in different shapes and sizes. It's not just about inventing new gadgets; it spans across various aspects of business.
1.2.1. New Product Innovation
Creating improved or entirely new products to meet evolving needs and preferences.
1.2.2. New Service Innovation
Pioneering fresh ways to deliver services, enhancing customer experiences and satisfaction.
1.2.3. New Supply Chain Innovation
Optimizing how products move from creation to delivery makes the supply chain more efficient.
1.2.4. New Business Model Innovation
Reinventing how businesses operate and make money, shaking up traditional models.
1.2.5. New Industry Innovation
Giving rise to entirely new industries by introducing groundbreaking technologies or approaches.
1.3. Innovation's Dual Impact: Generating Value and Reducing Costs
Innovation isn't just about making things fancier; it's a powerful tool that works on two fronts – creating value and saving costs.
1.3.1. Generating value
Innovation introduces products, services, or processes that exceed expectations, increasing market share and customer loyalty.
It positions businesses as industry leaders, setting new standards and delivering exceptional value.
1.3.2. Reducing Costs
Innovations streamline operations, adopting more efficient technologies and practices.
Sustainable innovations not only benefit the environment but also contribute to cost reduction.
Innovation is like a magical recipe that breaks the myth of trade-offs between value and cost. It's not a choice between making something great or affordable – with Innovation, you can have both. Take smartphones, for instance. They've become sleeker, smarter, and more feature-packed, yet the costs have often come down.
This isn't just limited to gadgets; consider electric cars. They're not just environmentally friendly; innovations have made them more cost-effective, too. So, the next time someone says you can't have quality without a hefty price tag, remember: Innovation makes excellence and affordability a dynamic duo.
1.4. Typical Misconceptions about Innovation in Business
Innovation isn't straightforward, and dispelling misconceptions is the first step toward a more nuanced understanding of what drives groundbreaking ideas. So, let's break these typical misconceptions about business innovation.
1.4.1. More Money Leads to Winning Innovation
Contrary to popular belief, more money doesn't always equal better Innovation. Big R&D budgets don't automatically lead to winning ideas. Some of the most impactful innovations emerged from simple, low-cost approaches, proving it's about creativity and not just the cash.
1.4.2. Innovation is Merely about R&D (Labs and Researchers)
Innovation isn't reserved for scientists in high-tech labs. It's not always about products, either. Many game-changing innovations come from reimagining how a company operates – it's about tweaking the business model. Think Airbnb or Uber; these ideas didn't emerge from lab teams but from everyday thinkers reshaping how we live and move. Everyday folks, not just researchers, can be the architects of innovative business models.
1.4.3. Having a Lot of Ideas Leads to Winning Innovation
Having a flood of ideas doesn't guarantee success. It's not about the quantity but the quality of your ideas. Think of it like a treasure hunt; it's not about how many rocks you turn over but about finding that one golden nugget. Quality triumphs over quantity.
1.4.4. Every Good Idea is a Good Business Opportunity
Having a brilliant idea doesn't automatically mean it'll make money. Not all good ideas translate into business success. Business viability is the key. Many innovative concepts fall short when it comes to making money. Testing and ensuring a substantial opportunity for profitability are crucial steps often overlooked.
1.4.5. Good Ideas Get Funded
Even the most fantastic ideas might not secure funding. Whether you're a startup or part of an existing company, convincing decision-makers to invest requires more than a great concept. It demands proof, and that's where prototyping comes in – turning your idea from a pitch to a tangible reality.
1.4.6. High Technology is the Key to Innovation
It's a common misconception that Innovation necessitates advanced technology. In reality, Innovation goes beyond fancy tech; simple, clever ideas have the power to transform businesses. The key lies not only in high-tech solutions but in the creativity and ingenuity that can be applied across various aspects of business.
"I used to draw like Raphael. It has taken me a lifetime to learn how to draw like a child." – Pablo Picasso.
1.4.7. Innovation is Expensive
Another common misconception is that people often associate Innovation with high costs. However, Innovation can be budget-friendly. It's not solely dependent on financial resources; it thrives on creativity and resourcefulness. In many cases, simple yet ingenious ideas are the catalysts for transformative innovations (even without substantial financial investments).
1.4.8. Innovation is only for Premium Products
Some individuals associate Innovation exclusively with high-end or fancy products. However, the reality is different – innovations have the potential to uplift any product, regardless of its perceived sophistication or price point. Innovation extends beyond luxury items, encompassing various products and services. By breaking free from the notion that Innovation is reserved for high-end goods, businesses can explore creative solutions that cater to a broader audience and enhance the overall value of their offerings.
1.4.9. Innovation comes from Expert Product Developers
It's a prevailing misconception that many hold, thinking that only experts possess the ability to innovate. Innovation is not confined to a select group of experts. In truth, innovative ideas can emerge from anyone, irrespective of their expertise or title. By recognizing that Innovation is a collective potential rather than an exclusive domain, businesses can foster a culture where creativity is encouraged from diverse sources, leading to a more inclusive and dynamic environment for generating groundbreaking ideas.
1.4.10. Innovation Takes Forever
Some individuals perceiving Innovation as a time-consuming process. Contrary to this belief, the reality is quite different – quick and smart ideas have the potential to lead to groundbreaking innovations without the need for extended timelines. Innovation is not necessarily synonymous with a lengthy journey; it can be driven by timely and efficient ideation, demonstrating that transformative breakthroughs can occur at a swifter pace than traditionally perceived.
2. The Crucial Role of Innovation in Business
Innovation isn't a luxury; it's a survival kit in business. Whether it's making things easier for customers or outshining competitors, businesses that embrace Innovation are the ones that thrive. So, keep those creative juices flowing – your business will thank you!
2.1. The Importance of Innovation in Business
Here's why Innovation is so important.
2.1.1. Staying Relevant
Business is like a fast train; you either keep up or get left behind. Innovating ensures your products or services stay relevant in the ever-changing market.
2.1.2. Beating the Competition
Imagine a race where you have the most fantastic, fastest car. That's your Innovation. It helps you leave competitors in the dust and be the customer's top pick.
2.1.3. Delighting Customers
Customers love new stuff. Innovations make your offerings more exciting, meeting customer needs in ways they didn't even know they wanted.
2.2. Examples of Innovation in Business:
2.2.1. Apple's iPhone
Remember the world before smartphones? Apple's iPhone changed everything, making phones smarter and connecting our lives.
2.2.2. Netflix Streaming:
No more waiting for DVDs in the mail. Netflix innovated by streaming shows and movies right into our homes, revolutionizing how we watch.
2.2.3. Tesla's Electric Cars:
Tesla didn't just make cars electric; they made them cool. Innovation here isn't just about being green; it's about making electric cars a status symbol.
2.2.4. Amazon's One-Click Shopping:
Amazon made buying stuff as easy as a single click. This Innovation in shopping convenience has set a benchmark for online retailers.
2.2.5. Airbnb's Home Sharing:
Who thought we'd book strangers' homes for vacations? Airbnb did. Their Innovation changed how we travel, turning houses into hotels.
2.3. Winning Innovation Makes Fortune
Winning Innovation isn't just a game-changer; it's a fortune-maker. Look at Sony Walkman – it transformed how we groove on the go. Cirque Du Soleil flipped the circus script, creating a whole new entertainment experience. Red Bull didn't just make energy drinks; it crafted a lifestyle brand. eBay revolutionized online auctions, and Crocs turned comfortable shoes into a global phenomenon. These winners didn't follow the rules; they rewrote them with Innovation, turning ideas into fortunes.
However, creating a winning innovation isn't a walk in the park. Just look at the Segway – it promised a revolution but didn't quite roll into everyday life. Even Apple stumbled with their PDA attempt. The key? A robust process. It's about more than just ideas; it's a journey of identifying, screening, and refining opportunities. This process ups the odds, separating the winning innovations from the could-have-been. So, while the road to Innovation might have its bumps, a strategic process is the GPS that helps navigate to success.
We're going to discuss this strategic process in Section 3.
2.4. How to Organize Business for Innovation
How you organize your business can significantly impact the outcome in the quest for Innovation. You have three main choices when generating, evaluating, and selecting ideas: team brainstorming, individual independent work, or utilizing AI. Each approach has its own set of advantages and drawbacks.
2.4.1. Team Brainstorming
Pros:
Facilitates collaboration and idea improvement.
Builds on diverse perspectives.
Enables critical and objective evaluation.
Cons:
Less productive in generating ideas.
Tends to avoid extreme views.
Lower variance in idea quality.
2.4.2. Individual Independent Work
Pros:
More productive in generating ideas.
Can yield highly innovative ideas.
Higher variance in idea quality.
Cons:
Lacks collaboration and idea enhancement.
Subject to less critical evaluation.
2.4.3. Generative AI
Pros:
Very productive in generating ideas.
Can generate a broad spectrum of ideas.
But the ideas will be similar (available to everyone).
Cons:
Limited in collaborative improvement.
Ineffective in evaluating ideas.
2.4.4. When to Use What
To harness the strengths of each approach, consider the following strategy for different stages of Innovation:
Idea Generation: Utilize individuals for a diverse pool of ideas. It can also be supplemented with Generative AI.
Idea Rating and Screening: Rely on individuals for critical evaluation.
Idea Refinement, Business Model Analysis, and Prototyping: Engage a team for collaborative enhancement.
Business Case and Action Plan: Leverage the collective power of a team for strategic planning.
Understanding the characteristics of each method allows you to tailor your approach, optimizing the innovation process at every stage.
3. The Process of Innovation in Business: The 9 Steps of Innovation Tournament
Innovation is a necessity. But how do you turn a spark of an idea into a game-changing reality? Let's break down the process into nine straightforward steps.
3.1. Idea Generation
Start by unleashing the creative power within your employees (or your managers). Ask each person to jot down 10 ideas. With an employee base of 100 people, that's a quick 1,000 ideas. Sure, some may overlap, but diversity sparks Innovation.
We leverage individual independent works because they are the most advantageous idea generation. Of course, you can ask the individuals to use Generative AI to generate the ideas. But usually, this will only increase the overlap of ideas between individuals. Ideally, it would be best to encourage your people to refrain from using Generative AI because you want richness of response.
3.2. Idea Rating
At this stage, where we have 1,000 ideas, we cannot investigate all 1,000 ideas – because it will be too costly and time-consuming to evaluate everything properly. So, we need to find a quick and dirty way to screen ideas. For this stage, individual rating of own work is the best.
To do so, have each of your employees rate his/her own ideas on a scale of 1-10 (where 1 is a poor idea and 10 is an excellent idea). The top 3 ideas from each person move forward. That's 300 ideas from the initial 1,000 ideas. Even after removing the duplicates with some tidy-up, you'll land on over 100 unique and promising concepts.
3.3. Idea Screening
Now, you have over 100 ideas. Still too costly to do a proper evaluation. So, we need another quick and dirty way to filter the ideas further. For this stage, individual voting for other's ideas works best.
To do so, you ask your employees to vote on these ideas. Each of them will have 10 votes that they use. Essentially, they need to vote for 10 ideas from the 100+ ideas. Based on the number of votes (by leveraging the crowd's wisdom), you will have a ranking for the 100+ ideas. For the sake of practicality, take the top 20-50. This way, you're left with the top 20-50 ideas to move forward.
3.4. Idea Refinement
For these top 20-50 ideas, you can start investing a bit in each. At this stage, we would like to take advantage of team's effectiveness in refining ideas.
So, we will form a special team (you can call them Innovation Committee, or Innovation Group, or whatever you like) to refine the chosen ideas. Split the team into 5 sub-committees or sub-groups, and then have each refine 4-10 ideas. Ask them to clarify the concepts, explore the value creation, and make tough calls (kill or proceed with the idea forward). They can use the tools such as the RWW method to screen ideas (see Section 6.3. below).
Typically, from 20-50 initial ideas, you might trim down to 5-10 ideas worth pursuing.
3.5. Business Model Analysis
For these 5-10 ideas, you would like to pay proper attention to them. It's time to move from the wisdom of the crowd to expert evaluation.
You would need to invest more energy in analyzing these ideas, especially about the idea's viability as a business opportunity. Analyze the business model and its financial, commercial, operational, technical, and environmental feasibility. Your list might shrink to a solid 3-5 ideas.
See Sections 6 and 7 for the tools and Business Model Canvas to help you with this.
3.6. Prototype Building and Experimentation
Time to put more skin in the game. Invest in prototypes and test your refined ideas. By experimenting, you will discover whether the concept works, how to improve the idea, and what additional factors to consider.
This stage often reveals the gems – you might end up with 1-3 real solid opportunities. They are the best ideas that have been tested and refined. Now, you are ready for a large investment.
3.7. Business Case and Action Plan
To secure investment, you will need to build the business case and prepare an action plan. For each tested prototype, build a robust business case and action plan. Make sure to prioritize tasks and minimize risks. By the end of this stage, you should have:
a strong business case for investment.
a compelling pitch for investment (and the presentation document).
a clear roadmap for implementation.
3.8. Investment Decision
Pitch your well-prepared business case to secure funding. Hopefully, at least one may get the green light out of these really solid ideas, thanks to the solid foundation you've laid.
3.9. Launch
With funding secured, it's time to execute the action plans. Armed with a solid business case, you're poised for success. One of these innovations may very well redefine the game for your company.
Innovation isn't a one-size-fits-all process, but these 9 steps can guide you from a multitude of ideas to a strategically executed game-changer.
If you need help with the process, as a seasoned facilitator, I can support you in orchestrating dynamic Innovation Tournaments. Contact me at Marvilano@Marvilano.com, and let's start designing the Innovation Tournament for your company.
4. How to Identify Innovation Ideas – for New Products/Services
Identifying innovative ideas for new products/services is the heartbeat of success. Here are five ways to identify innovative ideas for your next groundbreaking product or service.
4.1. Inspiration from Existing Technologies
4.1.1. Mix & Match Solutions
This is essentially using the existing technologies to solve the problem. Examples include:
Dutch Boy, a paint pioneer, ingeniously combined existing technologies to produce a temperature-sensitive color-changing paint, introducing a dynamic element to the world of interior design.
Inspired by manufacturing principles, Aravind Eye Hospital treats hospitals as focused factories, ensuring efficient and targeted patient care.
To do this, you need to employ systematic creativity. What you do is as follows:
Unearth pattern.
Understand why, when, and where this pattern works.
Apply this pattern to another context, e.g., new geography, new industry, new market.
4.1.2. Create High-Priced Variants
This is how to reposition existing products to capture more value. For example, La Farine Flour and Cinnamon Altoids took an existing product and elevated it through premium positioning and packaging, showcasing how perceived value can be enhanced without altering the core product.
Another example is Rolling Stone. Besides selling music CDs to everyday folks and doing regular tours, they also offer intimate gigs for bankers and royalties, commanding multi-million dollar fees. They blend mainstream accessibility with exclusive performances, catering to diverse audiences and revenue streams.
4.1.3. Change the Boundary of Your Product/Service
Discover Innovation by changing the boundaries of your product or service. Shift from one-to-one to models like one-to-many, many-to-one, or many-on-many. Transform from physical to virtual delivery, or from individual to team delivery. Introduce complementary services to expand your offering, integrating what customers already use.
Break boundaries by combining multiple dimensions instead of an "OR" approach, making it an "AND" strategy. Exploring these shifts in boundaries opens doors to fresh ideas and enhances the overall value of your product or service.
4.2. Inspiration from Unmet Needs
4.2.1. Unmet Needs Based on Personal Passions
This is to find ideas from the topics you are passionate about. For example, Lonely Planet, founded on a passion for travel, emerged to address the unmet need for comprehensive travel guides, highlighting the transformative power of aligning personal passions with business solutions.
4.2.2. Unmet Needs Based on Annoyances
This is to find ideas from the problems that annoy you. For instance, Netflix, born from the frustration of late fees for video rentals, turned a common annoyance into a revolutionary business model that allows users to borrow videos without worrying about penalties.
4.2.3. Finding Lead Users
A lead user is someone who feels a need so profoundly that they take it upon themselves to innovate and create solutions. It is valuable to capture their innovations because there are typically more lead users than your in-house product developers. It's crucial not to confuse lead users with early adopters; early adopters are those who try products early on. In contrast, lead users not only try the products but actively contribute to innovating and improving them. For instance, Gatorade, Sony Playstation, Apache Webserver, and the Mountain Bike drew inspiration from lead users—individuals deeply connected to a problem, showcasing the potential for capturing ideas from those intimately familiar with a specific need.
4.2.4. Identify Novel Concepts at the Edge
This is the realm where innovative ideas emerge at the market's periphery and are subsequently introduced to the mainstream. For instance, once on the fringes of motorcycle culture, Harley Davidson identified a novel concept and successfully integrated it into the mainstream market. This showcases the potential and transformative power of embracing ideas that originate at the edge.
4.2.5. Find Extreme Users
Extreme users have highly specific and intense needs, akin to specialty products. For instance, a professional skateboarder requires a high-spec skateboard, while an extreme mountain biker necessitates a specialized bicycle. Products such as the Herman Miller Aeron Chair and Oxo Good Grips are tailored to meet the distinctive requirements of extreme users, emphasizing the significance of crafting solutions for niche markets.
4.3. Inspiration from Market/Societal Trends
By keenly observing and adapting to market shifts, businesses can design products that align with the changing preferences of consumers. For example, the Innovation in fast-food chains and car seat designs reflects a strategic response to evolving societal trends.
4.4. Insporation from New Technologies
By embracing and harnessing new technologies, businesses can unlock opportunities to innovate and enhance the customer experience. For example, the advent of e-banking and mobile payment technologies revolutionized the financial industry.
4.5. Inspiration from Employee Inputs
Tap into your employees' insights for Innovation. They know the daily grind and challenges. Encourage open communication and value their ideas. Employees can be a goldmine of creative solutions. Embrace their input to spark Innovation and propel your organization forward.
4.6. Inspiration from Customer Inputs
By analyzing customers' input, you can find innovative ideas. It is not rocket science. You just need a mindset change to be alert for ideas from customers and know what to do with them.
4.6.1. Mix & Match Features based on their Importance
By differentiating customer needs by importance – whether they are:
the must-haves (if you don't provide these features, the customers will be dissatisfied);
the more-the better (if you provide these features, customer satisfaction will increase linearly the more you provide);
the irrelevants (whether you provide these features or not, the customers' satisfaction level remains the same); or
the delighters (if you provide these features, customer satisfaction will increase exponentially the more you provide)
– businesses can pinpoint areas for Innovation that align with customer priorities.
4.6.2. Tailor Features based on Different Customer Segments
All customers aren't the same. Engaging all customers can be costly – therefore, you must be clear about which customer segments you should engage. Recognizing that certain factors hold varying degrees of importance for different customer segments allows businesses to tailor their innovations to meet the specific needs of diverse audiences.
"Design Products for People You Love, NEVER for People You Don't Know!" – Herman Miller, Design Philosophy
4.6.3. Find Latent Needs
Probing for latent needs involves identifying customer desires that may not be immediately apparent, creating opportunities for Innovation that go beyond current expectations. For example, before the iPod in 2001, customers didn't realize they preferred digital music to physical copies.
4.6.4. Find Conflicting Needs
Identifying and resolving conflicting needs presents a fertile ground for Innovation, as solutions to these challenges can lead to unique and valuable product offerings. This is where you change OR into AND. For example, Li-Fung can offer both a reliable and cost-effective supply chain, smashing the initial assumption that a reliable partner cannot be cheap.
4.7. Inspiration from Customer's Journey
Explore Innovation by tracing the customer journey. Take the example of a customer catching a cold journey: 1) feeling good, 2) starting to get a cold, 3) having a cold, 4) starting to get better, and finally 5) feeling good again. If you're a pharma company with products only addressing the cold stage (e.g., medicine), you're limited to stage number 3. To broaden your offerings, consider products for stage 2 (before), such as an anti-cold nasal spray, or for stage 4 (after), like aromatherapy and hydrotherapy.
Observing the end-to-end customer journey unveils opportunities to diversify your product line and cater to different stages, ensuring a more comprehensive and customer-centric approach.
5. How to Identify Innovation Ideas – for New Business Model
Innovating your business model demands a strategic approach and a deep understanding of your market, customers, and industry dynamics. By carefully selecting and implementing these strategies, you can transform your business, fostering growth, efficiency, and long-term success.
5.1. Change Elements of Your Business Model
Let's explore some popular strategies that can revolutionize various elements of your business model, opening doors to growth and success.
5.1.1. Attacking the Underserved Long-Tail Segment (Mass Customisation)
Targeting the underserved long-tail segment involves identifying a niche that can be addressed with mass customization—selling less of more. This can boost revenue (but remember there might be increased costs). This strategy shines when there's a high demand for customization, and the cost of customization is low. A standout example is Nike ID's customized shoes and Timbuk2's personalized bags.
5.1.2. Going Low Touch
Streamlining customer contact by substituting it with technology is the essence of going low touch. This can significantly decrease costs, particularly when labor costs are high, customer contact doesn't add substantial value, and alternative solutions are readily available. Well-known examples include Ikea, Southwest Airlines, and Walmart.
5.1.3. Standardization/Focus
Focusing on one market segment to drive efficiency and enhance service is the crux of standardization/focus. This approach reduces costs while increasing customer satisfaction. It works exceptionally well when different market segments have distinct needs, and complications arise from mixing them. RyanAir, Subway, and L'Avion embody successful standardization and focus strategies.
5.1.4. User-Generated Content
Harnessing the power of the internet, social media, or technology to engage the crowd in business tasks is user-generated content. While it can reduce costs, there's a trade-off with less control. This strategy excels when there's a strong, committed community, the potential for marketing buzz, and the benefits from multi-parallelism. YouTube, TripAdvisor, and Cafepress serve as prime examples.
5.1.5. Bundling
Pairing different products and services to enhance the overall customer experience defines bundling. Sometimes, subsidizing one product to support another is necessary. This can increase revenue and customer satisfaction, especially when customer experience is linked to multiple complementary products/services, there's a lock-in effect, and it's feasible to restrict free choice. McDonald's meals, Fortis Hospital, and Amazon Kindle exemplify successful bundling.
5.1.6. Speeding Up the Timeline
Accelerating the business clock-speed to react faster to changes is the essence of speeding up the timeline. This reduces risk and increases revenue, particularly in situations with a significant risk of demand uncertainty, and it's possible to speed up at a low cost. Zara's shorter supply chain and Toyota's Just-in-Time production model are shining examples.
5.1.7. Make Bets After Information
Changing the sequence by selling first before producing, or hiring after winning a project, can significantly reduce risks. This strategy is effective when there's a high cost of demand uncertainty, a desire for variety, the product can be modular, and there is limited benefit from producing first. Dell's made-to-order laptops, United Color of Benetton, LiveOps, and Timbuk2, showcase the success of making bets after information.
5.1.8. Dynamic Pricing
Shifting from fixed pricing at the beginning to adjusting prices at a later time characterizes dynamic pricing. This strategy is effective when dealing with perishable products, managing inflexible capacity, and engaging in online sales. Uber, Airlines, Hotels, Priceline.com, and Hotwire.com employ dynamic pricing to navigate the market.
5.1.9. Private Sales
Rather than marking down unsold inventories, compressing them into a private sale event can mitigate risks, increase revenue, and safeguard the brand. This strategy suits high-end products, luxury brands, and situations with a high markdown cost. Vente-privee, Ideeli, and Brand Alley are prime examples.
5.1.10. Advance Information
Gaining early demand information before production through early orders or pre-launch sales is crucial. Offering discounts for credible information can be a part of this strategy. It works best when there are multiple styles, large assortments, high mismatch costs, long production timelines, early ordering is possible, and early information is available. Myfab, with customers voting on product designs before production, and Threadless are illustrative examples.
5.1.11. Disintermediation
Altering the sales channel by cutting out the middleman, selling direct, or using alternate channels is disintermediation. This increases revenue and reduces risk, especially when channel incentive misalignment is high, services provided by intermediaries are minimal, and products can be sold directly. Avon, Tupperware, and Dell follow successful disintermediation strategies.
5.1.12. Play Matchmaker/Become Intermediation Platform
Matching distinct sides by creating reputation systems and building long-term relationships with all sides characterizes playing matchmaker or becoming an intermediation platform. This reduces costs, risks, and exposure to opportunism risks, working best when there are many buyers and sellers, high search costs, and a high potential for opportunism risks. Among noteworthy examples are eBay, Alibaba, Taobao, Airbnb, CouchSurfing, LiFung, and 99Designs.
5.1.13. Servitization
Shifting from selling products to selling the services customers care about is servitiation. Offering 'power by the hour' style contracts, leasing services instead of selling products, works best when customers don't want to own assets, only desire the service, and when you can manage the risk of asset productivity better through private info, aligned incentives, and risk pooling. Hilti, leasing equipment instead of selling them; Xerox, charging for the number of pages printed instead of selling printers; Rolls-Royce and Philips showcase effective servitization.
5.2. Adopt Different Revenue Models
Let's explore various avenues for revenue generation, each presenting unique opportunities:
5.2.1. Make & Sell Product
A classic model, where revenue is generated by manufacturing and selling products.
5.2.2. Performance-Based Payment
Get paid when your product or service performs as advertised, tying success to revenue.
5.2.3. Value-Share in Profits/Benefits
Participate in the success by sharing the profits or benefits of your offerings.
5.2.4. Platform Commission
Build platforms and earn commissions when others sell their products or services on your platform.
5.2.5. User-Base Revenue
Establish a big user base and then monetize this user base, either through ads or by charging consumables.
5.2.6. Freemium Model
Offer free basic services and monetize by selling desirable add-ons to your users.
5.2.7. Lottery Model
Adopt a winner-takes-all approach: collecting small sums from many users and paying out large sums to a few users. And taking cuts in between.
5.2.8. Upfront Payment
Secure revenue upfront, enjoying the benefits of improved cash flow timing.
5.2.9. Subscription Model
Establish a regular income stream by charging users monthly or annually.
5.2.10. Pay-as-You-Go
Offer a flexible payment model, allowing customers to pay based on their usage.
5.2.11. Bundle Offering
Package products or services together for a comprehensive offering, appealing to diverse customer needs.
5.2.12. À la Carte Offering
Provide customers with the flexibility to choose and pay for specific services individually.
5.2.13. Loyalty Schemes
Encourage repeat business by implementing loyalty schemes that reward customers for their continued engagement.
5.2.14. Multi-Sided Market
Charge one side of the market while subsidizing the other, fostering a balanced ecosystem.
In selecting the most suitable revenue model, assessing your ability to define, measure, and enforce the chosen model effectively is crucial. Each model comes with its own advantages and challenges, and aligning your choice with your business objectives and capabilities ensures a strategic and sustainable approach to revenue generation in the ever-evolving business landscape.
5.3. How to Improve Your Odds of Finding Winning Ideas (based on Statistical Principle)
Discovering a truly great idea can feel like finding a needle in a haystack. Research from a London Business School professor sheds light on this challenge – on a scale from 1 to 10 (where 1 is terrible and 10 is amazing), out of 1000 ideas, fewer than 10 ideas surpass the 7.5 mark, highlighting the rarity of exceptional concepts.
This is actually not surprising. In various industries, we see similar patterns:
Pharma: Out of 10,000 possible components, only 1 blockbuster drug is typically found (after 8-12 years of R&D and $500-1,000M of investment).
Cinema: Out of 500 pitches, only 1 blockbuster movie is typically found (after 3-5 years and $50-200M of investment).
Venture Capital: Out of 1,000 pitches, typically only 1 ten-bagger investment (after 5-7 years of work).
Consumer Goods: Out of 1,000 NPD ideas, typically only 1 winning product (after 5 years of development).
Adding to the complexity, the quality of opportunities varies widely, and discerning their true potential proves even more challenging.
Here are four straightforward ways to enhance the quality of your ideas based on the statistical theory:
5.3.1. Crowdsource Ideas (i.e., Increase the Frequency)
Get your employees involved by asking each of them to generate 10 ideas. With a multitude of ideas, the likelihood of uncovering a great one increases.
Certainly, the curve is not a straightforward linear progression. It's important to note that an abundance of ideas doesn't necessarily equate to an abundance of great ideas. The research conducted by the London Business School reveals that on average:
Out of 100 ideas, approximately 7 can be identified as good ideas.
Surprisingly, when the number of ideas increases to 300, the yield only marginally improves, resulting in around 8 good ideas.
Moreover, increasing the number of ideas also has a downside – it escalates the cost of evaluating these ideas.
5.3.2. Screen for Quality (i.e., Shift the Mean)
Empower your team to sift through ideas and identify the good ones. By giving them a framework for assessment, you streamline the process and ensure bad ideas are naturally pruned. See Sections 6.3 and 7 for the tools.
5.3.3. Collaborative Evaluation (i.e., Shift the Curve)
Improve the accuracy of evaluating opportunities by involving a team. Team analysis allows members to build on each other's ideas, creating a richer pool of opportunities.
5.3.4. Embrace Diversity in Ideas (i.e., Increase the Variance)
Ensure diverse perspectives by involving people with varied backgrounds. A higher variance in ideas (stemming from diverse contributors) heightens the chances of discovering truly innovative concepts.
6. Tools to Help You Design Innovation
Even a subtle tweak in a product or service can lead to a substantial enhancement in its value. The pourty easy-to-pour potty, for instance, transformed its utility by a simple design addition—a spout—making it significantly easier to empty and clean. This transformative power of Innovation is harnessed through techniques like functional decomposition.
6.1. Tool for New Product/Service Innovation: Functional Decomposition
Functional decomposition provides a systematic approach to exploring the various facets of a product or service, encouraging creativity and uncovering unconventional solutions. Businesses can unlock a treasure trove of possibilities by breaking down the core functions and generating alternative concepts.
6.1.1 First Step: List all the functions of the product
To delve into the intricacies of functional decomposition, let's take the example of an ice cream scoop. The primary functions of this product include:
Separate layers of ice cream
Shape and size ice cream
Transport ice cream
Deposit ice cream
6.1.2 Second Step: Generate alternative concepts for each function
Now, let's explore alternative concepts for the first function—separating layers of ice cream. This can involve:
Sharp edge
Laser cut
Chemical process
Heat
Body heat
Solar heat
Electrical heat
Battery
Fuel cell
Wall outlet
Hot water
Repeat this process for each function of the ice cream scoop, generating a diverse array of possibilities.
6.1.3 Third Step: Combine the alternative concepts from all functions
As you generate alternative concepts for each function, the next step is to explore how these concepts can be combined. This is where the true magic of functional decomposition happens. Ideas from one function may synergize unexpectedly well with concepts from another, creating innovative combinations that wouldn't have been apparent through a traditional approach.
Separate layers of ice cream
Sharp edge
Laser cut
Chemical process
Heat
…
Shape and size ice cream
Scoop
Modular head
Squeeze out
…
Transport ice cream
Handle
Eject to air
Tube
…
Deposit ice cream
Lever
Shake out
Push out
Cut out
…
6.1.4 Fourth Step: Choose the Unique Combination
Amidst the myriad combinations, the fourth step involves selecting the unique combination that stands out. This concept not only fulfills the primary functions of the product but does so distinctively and innovatively. In the case of our ice cream scoop, this could be a combination of a laser-cutting mechanism for separating layers, an ergonomic handle design for shaping and sizing, a material choice for effective transportation, and a mechanism for precise and controlled ice cream deposition.
Traditional ice cream scoop: Sharp edge – Scoop – Handle – Lever
New Innovative Idea: Laser Cut – Modular head – Eject to Air – Lever
As you embark on your innovation journey, remember that even the smallest change can lead to the most significant breakthroughs.
6.2. Tool for New Business Model Innovation: Business Model Decomposition
Business model decomposition, akin to functional decomposition, is a powerful tool that dissects the intricate layers of a business model, enabling the generation of alternative concepts for each element.
6.2.1 The Elements of Business Model
Breaking down a business model involves understanding its core elements:
Commercial Process:
Market Segment: Identifying the target audience.
Market Awareness Process: How the business becomes known to people.
Sale Process: The strategy employed to encourage people to make a purchase.
Operational Process:
Key Input Needed: Acquiring raw materials or essential components.
Transformation Process: Creating the product or service.
Delivery Process: Getting the product or service into the hands of customers.
Solution:
Value Proposition: The unique offering presented to customers.
6.2.2 Application of Business Model Decomposition
Business model decomposition allows businesses to dissect and reimagine their fundamental structures. By scrutinizing each element and exploring alternative concepts, companies can uncover new avenues for growth and efficiency. The comparison between NetJets and JetTaxi showcases how this method can reveal unique strategies, demonstrating the transformative potential of business model innovation.
NetJets:
Commercial Process
Market Segment: Rich individuals.
Market Awareness Process: Primarily through print ads and word of mouth.
Sale Process: Relies on a commissioned sales force.
Operational Process
Key Input Needed: Regular acquisition of new aircraft.
Transformation Process: Ownership of a fleet and pilot management.
Delivery Process: Utilizes a call center, regional airports, and fleet optimization.
Solution
Value Proposition: Offers fractional ownership from 1/16 to full share.
JetTaxi:
Commercial Process
Market Segment: Targets business travelers in underserved routes.
Market Awareness Process: Relies on local media and corporate outreach.
Sale Process: Directly through a web-based platform.
Operational Process
Key Input Needed: Leverages the existing NetJets system.
Transformation Process: Utilizes the same NetJets system for operation.
Delivery Process: Operates through a web-based reservation system.
Solution
Value Proposition: Presents a web-based share-a-ride air taxi system.
Another alternative to Business Model Decomposition is Business Model Canvas. You can think of Business Model Canvas as the more detailed version of Business Model Decomposition. We will discuss Business Model Canvas in Section 7.
6.3. Tool for Screening Innovative Ideas: The RWW Method
The RWW method, pioneered by 3M, provides a practical framework for evaluating and prioritizing inventive ideas.
By applying the Real-Win-Worth It method, you can systematically sift through innovative ideas, focusing your efforts on those with genuine market potential, a winning edge, and worthwhile financial returns. This strategic approach enhances your chances of pursuing innovations that align with your business's long-term success.
6.3.1. Real
The first checkpoint is assessing the reality of the opportunity. Is there a tangible market waiting for your Innovation? Consider factors like market size, potential pricing, the technology required, your production capacity, and the ability to deliver at scale. Essentially, this step ensures your idea aligns with real-world demands.
6.3.2. Win
Moving forward, delve into the potential for success. Can you secure a winning position in this opportunity? Evaluate your ability to establish a sustainable competitive advantage. Explore the possibilities of patenting or branding the idea to secure your position. Assess your capability to execute the idea effectively and ensure you have the necessary resources to come out on top.
6.3.3. Worth It
Finally, the financial aspect comes into play. Is the opportunity financially viable? Consider your capacity to afford the required investment and whether the anticipated returns justify the costs. This step ensures that not only is the idea realistic and achievable, but it also makes sound financial sense for your business.
6.4. Tool for Improving Existing Product/Service: Product and Architectural Decisions
Enhancing an existing product or service demands a thoughtful blend of creativity and strategic decision-making. By following these steps, you pave the way for meaningful improvements that resonate with your customers and contribute to the overall success of your business.
6.4.1. Components Listing
Begin by listing all the components of your product or service. This step sets the foundation for understanding what goes into your offering.
6.4.2. Identify Fixed Specifications
Pinpoint specifications that are fixed and cannot be altered. This clarity helps in navigating the boundaries within which you can innovate.
6.4.3. Rethinking Component Choices
Delve into altering choices about the remaining components. Ask critical questions:
How does it work?
How do you define quality?
Break it down and contemplate the manufacturing process.
Consider designing for various purposes such as assembly, variety, postponement, and environment. Link differentiating dimensions (e.g., quality, kid-friendly) with corresponding aspects of product design (e.g., material, cover).
6.4.4. Designing Experiments
To test your ideas, design experiments that provide insights into key uncertainties. Developing a functional prototype can be instrumental in gauging the practicality of your enhancements.
6.4.5. Strategic Architectural Decisions
Now, strategically decide which components to change. Keep in mind that altering product architecture impacts numerous strategic decisions. Be intentional about these changes, ensuring they align with your overall business objectives.
6.5. Tool for Designing New Prototype: Prototype Design Principles
A strategic approach is crucial for turning ideas into tangible realities when venturing into prototype design. Here's a simple guide to prototype design principles that can steer your innovation journey:
6.5.1. Physical vs. Non-Physical Prototype
Draw a line between physical and non-physical prototypes. Physical ones involve tangible components, like a product model, while non-physical prototypes might be simulations or digital representations. Choose the type that aligns with your testing and validation needs.
6.5.2. Defining the Prototype's Objective
Before diving into the intricacies of design, pinpoint the objective of your prototype. What problem does it solve? What need does it address? A clear goal will serve as your North Star throughout the design process.
6.5.3. Functionality Focus
Identify the core functionalities your prototype should deliver. Whether streamlining processes, enhancing user experience, or introducing novel features, clarity on functionality is key to a purposeful prototype.
6.5.4. Consider Commercial and Operational Feasibility
Commercial Evaluation:
Assess if your target customers will find value in your product or service.
Gauge their willingness to pay for the offering.
Consider customer retention factors.
Develop strategies to reach and attract your customer base.
Operational Evaluation:
Scrutinize technical feasibility.
Calculate production costs.
Explore scalability potential.
Ensure compliance with legal standards.
Identify potential partners or suppliers.
By holistically evaluating your prototype from both commercial and operational angles, you refine the design and pave the way for a seamless transition from concept to market. Remember these principles, and your prototype will serve as a robust foundation for your innovative endeavors.
6.6. Various Useful Practical Tools for Innovation in Business
The right tools can make a significant difference. Here are some practical tools that can be immensely useful:
6.6.1. Amazon Mechanical Turk
Need help with human intelligence tasks? This website connects you with a vast workforce to accomplish tasks that computers can't.
6.6.2. Google AdWords
Curious about the cost of acquiring customers? Google AdWords allows you to evaluate and manage your online advertising, helping you optimize your customer acquisition strategy.
6.6.3. Google Analytics
Understanding customer behavior on your website is crucial. Google Analytics provides valuable insights, allowing you to make informed decisions based on user interactions.
6.6.4. Freelancer (formerly RentACoder)
When it comes to software development, outsourcing can be a game-changer. Freelancer connects you with skilled professionals who can bring your software projects to life.
6.6.5. 99Designs
Outsourcing design and branding tasks has never been easier. 99Designs lets you tap into a global community of designers, ensuring diverse and creative solutions.
6.6.6. Fiverr
For those smaller tasks like design tweaks or copywriting, Fiverr is a go-to platform. It's a marketplace where freelancers offer various services starting at just $5.
6.6.7. Upwork
Finding the right freelancers can be challenging, but Upwork simplifies the process. With a vast talent pool, you can connect with freelancers for various roles and projects.
6.6.8. Darwinator
Darwinator is a web-based tool designed to facilitate the generation and selection of outstanding opportunities, making it particularly effective for idea management and various other business challenges.
7. Tool for Refining Innovative Ideas: Business Model Canvas
As businesses navigate through the intricate landscape of the market, understanding and optimizing these elements within the Business Model Canvas becomes imperative for sustained success and Innovation. The Business Model Canvas serves as a compass, guiding businesses toward strategic decisions that align with market needs and internal capabilities.
7.1. Elements of Business Model Canvas
The elements of the Business Model according to the framework are as follows:
7.1.1. Customer Segments
Key hypotheses:
For whom are we creating value?
Who are our most important customers?
Options:
Mass market
Niche market
Segmented
Diversified
Multi-sided platform
7.1.2. Value Propositions
Key hypotheses:
What value do we deliver to the customers?
Which one of our customer's problems are we helping to solve?
What products/services are we offering to the customers?
Which customer needs are we satisfying?
Options:
Newness
Performance
Customization
Getting the job done
Design
Brand
Status
Price
Cost reduction
Risk reduction
Accessibility
Convenience
Usability
7.1.3. Customer Relationships
Key hypotheses:
What type of relationship does each of our customer segments expect us to establish/maintain with them?
How costly are they?
Options:
Personal assistance
Dedicated personal assistance
Self-service
Automated services
Communities
Co-creation
7.1.4. Channels
Key hypotheses:
Which channels do our customer segments want to be reached through?
Which channels work best?
Which channels are most cost-efficient?
7.1.5. Revenue Streams
Key hypotheses:
For what value are our customers really willing to pay?
What do they currently pay?
How much does each revenue stream contribute to the overall revenues?
7.1.6. Key Resources
Key hypotheses:
What key resources does our value proposition require? Our distribution channels? Our customer relationships? Revenue streams?
Options:
Physical
Intellectual
Brand
Patents
Copyrights
Data
Human
Financial
7.1.7. Key Activities
Key hypotheses:
What key activities do our value proposition require? Our distribution channels? Our customer relationships? Revenue streams?
7.1.8. Key Partnership
Key hypotheses:
Who are our key partners?
Who are our key suppliers?
Which key resources are we acquiring from partners?
Which key activities do partners perform?
Motivations for partnerships:
Optimization and economy
Reduction of risks and uncertainties
Acquisition of particular resources and activities
7.1.9. Cost Structure
Key hypotheses:
What are the most important costs inherent in our business model?
Which key resources are the most expensive?
Which key activities are the most expensive?
Is the business model more:
Cost-driven (lean cost structure, low price proposition, max automation, extensive outsourcing), or
Value-driven (focused on value creation, premium proposition)
Typical elements to consider:
Fixed costs (salaries, rent, utilities, etc)
Variable costs
Economies of scale
Economies of scope
7.2 How to Use Business Model Canvas for Innovation in Business
Leveraging the Business Model Canvas for Innovation provides a systematic and insightful approach. By methodically assessing and experimenting with each element, businesses can navigate the uncertainties of Innovation with precision. Business Model Canvas emerges not just as a visual representation of a business model but as a dynamic tool for propelling Innovation and ensuring sustained success.
7.2.1 Develop Hypotheses for Each Element of Business Model
Before diving into Innovation, articulate hypotheses for each element of your business model. These elements encompass customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure.
7.2.2 Innovate on the Business Model
Take a closer look at your existing business model and identify areas for Innovation. Consider how you can tweak or revolutionize elements to enhance success. Whether it's refining customer segments, redefining value propositions, or optimizing cost structures, Innovation can be infused into various facets.
7.2.3 Rate How Certain/Uncertain You Are About Your Hypothesis
Assign a score from 1 to 10 to each hypothesis, reflecting the level of certainty. A score of 1 indicates complete uncertainty, while a score of 10 signals absolute certainty. This step lays the foundation for gauging the confidence level in your innovative ideas.
7.2.4 Determine How Critical Each Hypothesis Is for Your Business's Success
Evaluate the criticality of each hypothesis by assigning scores ranging from 1 (not critical at all) to 10 (very critical). This assessment provides insights into which elements carry the most weight in ensuring the success of your business.
7.2.5 Identify the Critical but Uncertain Hypothesis
Pinpoint hypotheses with a criticality score exceeding 6 but a certainty score falling below 6. These critical yet uncertain elements become focal points for targeted experiments to validate assumptions and reduce uncertainty.
7.2.6 Design Experiments to Test These Hypotheses
Craft experiments tailored to the identified critical but uncertain hypotheses. Market research, customer interviews, prototype development, and supplier quotes are examples of experiments aligned with specific hypotheses. These experiments serve as strategic probes, gathering data to inform decision-making.
7.2.7 Make Adjustments to Your New Business Model
Armed with insights from experiments, adjust your business model accordingly. This iterative process allows for the fine-tuning of innovative elements, aligning your strategy with validated data. Be agile in your approach, embracing change as a constant in the innovation journey.
8. How to Pitch Your Innovation Idea: A Simple Guide
Pitching your innovation idea is a crucial skill. Use the following framework on how to craft an effective pitch.
8.1. Describe the Business Opportunity
Start by clearly outlining the business opportunity your innovation addresses. Define the problem or need in the market that your idea aims to solve. Be concise and focus on the core of the opportunity.
8.2. Give it a Fancy, Memorable Name
Capture attention with a name that's not just descriptive but also memorable. A catchy name can leave a lasting impression and make your Innovation stand out. See Section 9, How to Name Your Innovation.
8.3. Explain What Makes Them Novel
Highlight the unique aspects of your Innovation. What sets it apart from existing solutions? Emphasize the novelty and Innovation embedded in your idea.
8.4. List All Potential Competitors
Acknowledge existing players in the market. Identify potential competitors and briefly outline their offerings. This demonstrates your awareness of the landscape.
8.5. Highlight What Differentiates Your Idea
Clearly articulate the factors that set your idea apart. Whether it's a unique feature, better efficiency, or a disruptive approach, emphasize what gives your Innovation a competitive edge.
8.6. Outline Your Business Model
This is the crux of your pitch. Break down your business model into key components.
8.6.1. Revenue Model:
Define your key market segment.
Highlight the size of the segment.
Explain your pricing policy.
Assess the willingness of customers to pay.
8.6.2. Cost Model:
Break down fixed costs.
Outline direct and indirect costs.
Analyze per-unit costs at different volume levels.
8.6.3. Customer Acquisition Strategy:
Detail how you plan to acquire customers.
Estimate the cost involved in customer acquisition.
8.7. Don't Forget to Practice
Rehearse your pitch thoroughly. While slides are essential, focus more on telling a compelling story. Ensure that your narrative is engaging and effectively communicates the essence of your Innovation. By mastering your pitch, you enhance your chances of securing support for your groundbreaking idea.
9. How to Name Your Innovation: Uncomplicated Strategies
Naming your Innovation might seem like diving into a vast sea of possibilities, with over a million words in the English language. However, research from the London Business School reveals that, out of the countless names typically brainstormed, only a handful turn out to be truly effective. Let's simplify the process with these simple techniques.
9.1. Four Types of Names
Remember, finding the right name is an iterative process that involves expansion and contraction. To simplify the process, choose one of these types of names.
9.1.1. Descriptive Names
Choose names that describe the essence of your Innovation. Examples like TripAdvisor and Who Where instantly convey their purpose.
9.1.2. Invented Names
Create unique names that didn't exist before, giving your Innovation an original identity. Think of Hotwire, Quora, or Spotify.
9.1.3. Experiential Names
Opt for names that evoke the experience or benefits of using your Innovation, like Easy Jet, Internet Explorer, or Better Place.
9.1.4. Evocative Names
Select names that evoke emotions or associations, such as Lonely Planet or Yahoo.
9.2. Practical Techniques for Naming
By applying these practical techniques, you can navigate the naming journey with more clarity and creativity.
9.2.1. Stimuli
Explore analogies from other domains or businesses, and consider random stimuli to trigger unique ideas.
9.2.2. Constructive Operations
Engage in a mix-and-match process of features and elements. Utilize naming tools like Lingzini.com for assistance.
9.2.3. External Search
Benchmark your ideas against existing literature, consult experts, and conduct external searches to refine your choices.
9.2.4. Length of Name
Research suggests that shorter names work best. Short domain names are linked to higher web performance.
9.2.5. Vowels
Consider the gender association of vowels. Research by Amy Perfors (MIT) indicates that font vowels are more attractive for masculine names and less for feminine names.
10. Supporting Your Organization with Innovation Tournament
Elevate your company's innovation game with an expert-led Innovation Tournament. As a seasoned facilitator, I can support you in orchestrating dynamic Innovation Tournaments, tailored to your business needs.
Ready to innovate? Contact me at Marvilano@Marvilano.com, and let's start designing the Innovation Tournament for your company.