There is plenty of outcome uncertainty when investing in innovation. Therefore, it is important to mitigate the risks. This is especially true if your company invests a considerable amount in research and development (one client’s budget is 9% of revenue).
These structured steps can assist (and don’t jump to #8 as many do):
- Seek ideas from consumers, suppliers, partners
- Confirm viability of concepts
- Qualify concept cross-functionally (research, marketing, manufacture, engineers, finance)
- Define clear priorities
- Gain top management commitment
- Dedicate financial resources
- Allocate appropriate people resources with clear roles and responsibilities
- Build
- Launch
On any of these steps, be prepared to cut losses when the original promise wanes….and then innovate through an acquisition!
Do you have an investment process for innovation?
