Innovation

Proof of Concept

Proof of Concept Jonathan Poland

A proof of concept (POC) is a demonstration that a certain idea or solution is feasible and likely to be successful. It is a way for businesses and organizations to test and validate new ideas, products, or technologies before committing significant resources to their development and implementation.

POCs are typically used to confirm that a particular concept or solution will work in the real world and meet the needs of the target audience. They can be used to evaluate the technical feasibility of a solution, assess its potential value to the organization, and determine whether it is worth pursuing further.

There are several steps involved in creating a POC, including:

  1. Defining the problem or challenge that the POC is intended to solve.
  2. Identifying the key stakeholders and decision-makers who will be involved in the POC process.
  3. Developing a plan for how the POC will be conducted, including a timeline, budget, and resources needed.
  4. Conducting the POC, which may involve building prototypes or prototypes, conducting user testing, and gathering data and feedback.
  5. Analyzing the results of the POC to determine whether the concept or solution is viable and worth pursuing further.

POCs can be useful for organizations of all sizes and in a variety of industries, as they provide a way to test and validate new ideas before committing significant resources to their development. By conducting POCs, businesses can reduce risk and make more informed decisions about which projects to pursue. The following are common approaches for developing a proof of concept.

Demo
A low budget implementation of an artistic work or technical design. For example, a songwriter who records a demo of a song at home.

Animation
Animation is commonly used as proof of concept for architecture, landscape design, interior design, engineering, product development and filmmaking.

Art
Art such as diagrams and illustrations that visualize ideas, strategies and designs. Art may tell a story such as a thought experiment that validates the concept.

Lead User
Developing a custom solution for a lead user as an exploration of product strategy.

Business Experiments
Testing business concepts with market research techniques such as focus groups and ladder interviews.

Proof of Technology
A test of a technical solution such as an algorithm that may have no user interface.

Throwaway Prototype
A low cost implementation designed to explore the viability of a design.

Evolutionary Prototype
An expensive prototype that explores cutting edge features and quality improvements. For example, a concept car developed to explore designs and features that might not be launched to market for 5 years or more.

Steel Thread
A prototype that seeks to be as minimal as possible while testing the entire end-to-end design of a project. For example, a project that will implement 200 screens for a user interface implements a single screen using the requisite architecture, design, infrastructure, platforms and components.

Horizontal Prototype
Building a complete user interface that doesn’t do anything. For example, implementing 200 screens with static data without using the requisite architecture, design, infrastructure, platforms and components.

Mockup
A prototype that looks like the end product with no functionality. For example, a scale model of a building.

Minimum Viable Product
A prototype or initial product version that is good enough to put in front of customers as a trial or pilot.

Innovation Risk

Innovation Risk Jonathan Poland

Innovation is a proactive approach to business and design that aims to make significant improvements, rather than simply making incremental changes. This often requires taking bold, ambitious risks in order to achieve significant improvements or breakthroughs. Innovation is a key component of many successful businesses, as it allows them to stay ahead of the competition and continuously improve their products and services.

Why Manage Innovation Risk?

It is a common misconception that risk taking and risk management are incompatible. In reality, risk takers often rely on risk management strategies to minimize unnecessary risks and maximize the chances of success. For example, extreme sports enthusiasts may use knowledge, preparation, equipment, and training to reduce the risks associated with their activities.

Innovation often requires taking calculated risks, as it involves experimenting with new ideas and venturing into unknown territory. However, effective risk management can help innovation succeed by minimizing unnecessary risks and enabling businesses to focus on intelligent risks that have the potential to drive significant improvements. In this way, risk management can enable innovation to push the boundaries and achieve breakthroughs while minimizing the chances of failure.

Early Phase Innovation

Early phase innovation risk is typically handled by designing experiments to fail quickly, cheaply and safely. At this stage, risk management is a lightweight review of experiments to identify reputational, operational, financial, health & safety and environmental risks.

Late Phase Innovation

Late phase innovation risks typically require the due diligence of a full risk management process of identifying, assessing and treating risks. Common treatments include avoiding, transferring, sharing, mitigating or accepting risk. Innovation risk management often requires careful consideration of the precautionary principle.

What Is Innovation Capital?

What Is Innovation Capital? Jonathan Poland

Innovation capital is a form of intellectual capital that refers to the resources and processes that an organization uses to foster innovation. It includes anything that helps the organization to develop and implement new ideas beyond the creativity and talent of its employees. Innovation capital can take many forms, including intangible assets such as patents, trademarks, and copyrights. It may also include processes and systems that support innovation, such as research and development (R&D) programs, design thinking methodologies, and collaboration tools.

Innovation capital is important because it helps organizations to stay competitive and adapt to changing market conditions. By investing in innovation capital, organizations can create new products and services, improve existing ones, and find new ways to solve problems and meet customer needs. To effectively leverage innovation capital, organizations should have a clear understanding of their innovation goals and priorities, and should allocate resources appropriately. They should also ensure that their innovation processes are well-designed and aligned with their overall business strategy. The following are illustrative examples of innovation capital.

Brand
Launching an innovation under a strong brand can be a significant advantage as it may dramatically increase adoption.

Trade Secrets
Competitive advantages that are defended using secrecy. For example, a firm may have superior manufacturing processes that allows a new innovation to be manufactured cheaply at high quality.

Knowledge
Documented knowledge that can be leveraged by innovation teams such as a guide to setting up a business experiment.

Data
Data sets that can be used for experiments, validations or ideas.

Intellectual Property
Legal rights such as patents that prevent the competition from copying an innovation.

Ideation

Ideation Jonathan Poland

Ideation is the process of generating ideas and solutions to problems. It is a crucial step in the creative process, as it allows individuals and organizations to come up with new and innovative solutions to challenges they face.

The ideation process typically begins with a clear understanding of the problem or challenge at hand. This involves defining the problem, gathering information about it, and identifying potential constraints or limitations. Once the problem has been clearly defined, individuals or teams can begin to brainstorm potential solutions.

There are a variety of techniques and methods that can be used to facilitate the ideation process. For example, brainstorming is a popular method where individuals or teams generate ideas in an unstructured and free-flowing manner. This can be done through discussions, writing, or drawing. Other techniques include lateral thinking, which involves approaching problems from unconventional angles, and SCAMPER, which involves using a set of prompts to stimulate idea generation.

Ideation can be an effective way to generate a large number of potential solutions to a problem, but it is important to also evaluate and prioritize these ideas. This can involve using tools such as a SWOT analysis to evaluate the strengths, weaknesses, opportunities, and threats of each idea, or using a decision-making process to select the most promising ideas to pursue further.

Overall, ideation is an essential step in the creative process and can help individuals and organizations come up with innovative solutions to the challenges they face. By using effective techniques and methods, and carefully evaluating and prioritizing ideas, ideation can lead to successful outcomes. Here are some examples.

Brainstorming

Brainstorming is the process of spitting out ideas without validation. For example, a design process that begins with everyone on the team suggesting their most far fetched ideas without fear of criticism.

Reverse Brainstorming

Reverse brainstorming is the process of considering what could go wrong. Ideas generated with brainstorming can be later validated with reverse brainstorming. For example, an architectural team that comes up with a design for an earthquake resistant house that brainstorms a list of the design’s weaknesses and risks.

Preserving Ambiguity

Preserving ambiguity is the theory that it is better not to make assumptions too early in an ideation process. For example, a student who is thinking about where to work after graduation who doesn’t automatically assume they need to work for a large company.

Creativity of Constraints

The theory that beginning with constraints increases the creativity of ideas. For example, an architectural team tasked with designing a house that is both extremely earthquake resistant and inexpensive.

Creative Tension

Creative tension is the idea that lively debate improves the creativity of groups. This would suggest that nations and organizations that value group harmony aren’t as creative as those that embrace individualism and argument.

Motley Crew Principle

The motley crew principle is the observation that extremely creative outputs are often the result of diverse contributors. For example, film crews that are composed of people with a broad range of backgrounds and talents.

Challenging Assumptions

The basic process of identifying assumptions, including your own, that may be blocking you from seeing broad ideas of value. For example, an oil company employee who challenges the assumption that their firm is an “oil” company and not an “energy” company that is free to produce clean energy.

Divergent Thinking

Divergent thinking is the process of thinking about areas that have no “correct” answer. For example, planning your future whereby you are free to do anything.

Failure of Imagination

Failure of imagination is the expectation that the future will resemble the past despite the fact that things constantly change. This is often seen in risk management whereby societies expect future risks to resemble recent problems even where new risks have become extremely obvious.

Incubation

Taking time to let your mind work on a problem. For example, a solution to a problem often appears after a break or a good night’s sleep.

Derivative Ideas

The process of taking existing ideas and changing them. In many cases, brilliance is an imperfect copy of something. For example, writers, musicians and artists may stumble upon extremely valuable and non-obvious ideas while trying to emulate their heroes.

Inventive Step

Inventive step is the original thought of an individual that generates a non-obvious idea. Most ideas are obvious. It is somewhat rare to generate ideas that aren’t obvious and these may seem obvious later in retrospect. For example, innovative film directors of one generation are often copied by the next generation of film makers such that later audiences may view brilliant films of the past as cliche.

Play

Creative ideas often come when you are in a playful state of mind and those who have cultivated their ability to play are typically more creative than those who have become altogether serious.

Improvisation

Improvisation is a common exercise for putting people into a more flexible state of mind that is conductive to creativity. This involves collaboratively building upon a shared story without ever rejecting the additions of others.

First Principles

The process of reducing things to their most basic truths, known as first principles. For example, an designer who uses the principle of least astonishment to find design ideas based on existing conventions that are intuitive to users.

Thought Experiment

A thought experiment is an analogy that models a problem in order to simplify it or gain new insights. For example, a manager finds that an engineer always talks over the heads of others. As an exercise, they ask the engineer to think about how they would explain a complex system to a small child.

Serendipity

Serendipity is the observation that extremely valuable ideas can occur suddenly as if out of nowhere after struggling with a problem for a long period of time. For example, a mid-career professional who struggles with disinterest in their career who suddenly sees a way to a more satisfying career or lifestyle.

Creative Ability

Creative Ability Jonathan Poland

Creative ability is the talent or aptitude for creating ideas or products that are original, valuable, and impactful. This can apply to any field where non-obvious ideas are useful, such as advertising, product design, software development, or problem-solving. Creative ability is not limited to artistic or visual pursuits, but is important in any field where there is a wide range of talent and ability among individuals. A person with a high level of creative ability may be able to come up with unique, effective solutions to complex challenges, while someone with less creative ability may struggle to generate original ideas. Creative ability is therefore an important quality to have in any field that values innovation and originality. Creativity can also be a character trait such as originality or coolness. The following are common examples of creative abilities.

Acting Advertising
Algorithms Architecture
Carpentry Coaching & Mentoring
Commercial Art Crafts
Creative Direction Creative Intuition
Creative Leadership Creative Reuse
Creative Thinking Decision Making
Design Thinking Divergent Thinking
Drawing & Illustration Engineering Design
Experiment Design Fashion Design
Filmmaking Game Design
Humor Imagination
Improv Influencing & Persuasion
Information Architecture Interior Design
Invention Landscaping & Gardening
Music Composition Musical Performance
Negotiation Painting
Performance Art Problem Solving
Product Design Public Speaking
Research Sculpture
Set Design Software Architecture
Software Design Songwriting
Storytelling Strategic Thinking
Systems Thinking Teaching
Theory Formation User Interface Design
Verbal Communication Visual Communication
Visual Design Wit
Writing

Cost Innovation

Cost Innovation Jonathan Poland

Cost innovation is the practice of finding ways to significantly improve value while reducing costs. This can be achieved through a variety of means, such as improving efficiency, streamlining processes, and using new technologies or materials. While innovation is often associated with adding new features or functions to a product or service, cost innovation is critical to the competitiveness of businesses and countries. By finding ways to deliver more value at a lower cost, companies can improve their profitability and gain a competitive edge in the market. Cost innovation is therefore a key focus for many organizations, as it can help them to remain competitive and thrive in a rapidly changing business environment. The following are illustrative examples.

Automation

Automating toil to reduce labor costs and improve speed and quality. For example, an ecommerce fulfillment center that automates the process of picking orders with robotic systems to dramatically increase order throughput and reduce fulfillment cost.

Elimination of Waste

Reducing wasted time, effort and resources. For example, a factory that implements an innovative maintenance program that dramatically reduces the cost of production line downtime.

Dematerialization

Dematerialization is the process of using less materials without reducing value. In many cases, materials can be completely eliminated with a digital equivalent. For example, a streaming media service as opposed to an overpackaged DVD product.

Lightweighting

The design of things to be lightweight to reduce costs. For example, the use of advanced composite materials in aircraft that dramatically reduce fuel consumption.

Productivity Tools

Making tools more productive for users. For example, professional video editing software that uses AI to automatically identify entities in a scene such that they can be marked for processing. This may save a video editor hundreds of hours a year and reduce costs for a studio or project.

Economies of Scale

Producing a billion units a year tends to be much cheaper per unit than producing a million units a year. This effect is known as economies of scale and is a fundamental approach to cost innovation. For example, a bakery that redesigns its production line to produce 90% more units an hour may reduce unit costs by 20%.

Mass Customization

Mass customization is the process of manufacturing unique and customized items without sacrificing scale. For example, a single soap production line that manufacturers different soap formulations and form factors for different customers without every slowing down to reconfigure the line.

Sourcing

Dramatically reducing costs by focusing on your competitive advantages and sourcing to firms with superior economies of scale where possible. For example, a bank that sells its data centers in favor of using computing platforms provided by major technology companies that are an order of magnitude cheaper.

Efficiency

Improving the efficiency of automation, equipment, processes, practices and services in a dramatic way. For example, a government that allows most people to renew their drivers license online such that they dramatically reduce staffing and location costs.

Race to the Bottom

In many cases, customers buy on price alone such that firms with the lowest costs have a fundamental competitive advantage whereby they can beat the prices of competitors and remain profitable. This can create a race to the bottom whereby quality declines rapidly as firms aggressively innovate to reduce costs. For example, a reputable glassware company that begins to replace metal and borosilicate glass with less durable and attractive materials such as plastic. This will certainly reduce costs but may damage the brand as customer satisfaction drops and new competition step in to improve quality.

Research Design

Research Design Jonathan Poland

Research design is the overall plan or approach that a researcher follows in order to study a particular research question. There are many different research designs that can be used, depending on the specific goals and characteristics of the research project.

For example, a researcher might use a descriptive research design to simply observe and describe a particular phenomenon, or a experimental research design to test a hypothesis by manipulating variables and observing the effects. Other common research designs include cross-sectional, longitudinal, and mixed-methods designs. These research designs are used to guide the collection and analysis of data, and to help ensure that the research is rigorous and reliable. The following are common types of research design.

Secondary Research

Review and narrative that is based on existing sources.

Meta-analysis

Analysis that uses existing sources. For example, a review of multiple studies that numerically aggregates and summarizes their findings.

Primary Research

Primary research produces new observations. Also known as original research.

Qualitative Research

Collecting, analyzing, and interpreting non-numerical data such as interviews with people.

Qualitative Research

Collecting, analyzing, and interpreting non-numerical data such as sensor readings.

Scientific Research

Research that strictly conforms to the scientific method including elements such as a falsifiable hypothesis, empirical evidence and peer review.

Correlational Research

Correlational research looks for correlations between variables without manipulating these variables. Correlation doesn’t equal causation such that these studies can produce misleading impressions that one thing causes another when both may be influenced by some third factor.

Data Dredging

Using software to automatically find correlated variables in datasets. This can be used to produce fraudulent research whereby a researcher misrepresents their method by pretending to start with a research question when they actually worked backwards from automatically discovered correlations. Data dredging also plays a valid role in exploratory research.

Exploratory Research

Research that lays the groundwork for other research. For example, a data analysis that is used to formulate a problem statement, hypothesis or experiment design.

Causal-Comparative Research

Causal-comparative research attempts to use data to establish evidence for a cause and effect relationship. This might use several datasets and detailed controls that aggressively seek to eliminate alternative explanations for an effect. For example, if people who live near busy highways have a higher risk of some health problem a study may control for other factors that may explain this correlation such as income level or lifestyle.

Observational Study

Research where the independent variable isn’t controlled such that it isn’t an experiment. This can be exploratory research, correlational research or causal-comparative research.

Cohort Study

Studies based on groups of people who share a common characteristic, known as a cohort.

Prospective Cohort

Choosing the members of cohorts at the start of a study.

Retrospective Cohort

Cohorts are selected based on historical data. Runs some risk that the researcher will aggressively define the cohort to fit some pattern found in the data.

Case–control Study

A retrospective cohort selected based on outcomes such as comparing the lifestyle of people who get a disease with those who don’t get it. Useful for exploratory research but problematic for establishing cause and effect. For example, if you scan for differences in the lifestyle of people who graduate high school and those who don’t you may find that jelly donut consumption are different between these two cohorts but it is a stretch to suggest this is a cause.

Case Study

A detailed report of a single example. Useful for exploratory research. For example, a doctor who documents an allergic reaction to a chemical that hasn’t been on the market for long.

Longitudinal Study

Measuring the same variables over an extended period of time. Often an observational cohort study that observes a group of people over some time period. However, experimental research can also be a longitudinal study such as an experiment on a field of crops for half a year.

Cross-sectional Study

A study that compares observations at a point in time. For example, comparing the air quality of cities and the rate of a disease in those cities with the most recent data available for each city.

Experimental Research

Experimental research is the testing of a hypothesis or multiple hypotheses with experiments. This involves changing an independent variable to observe corresponding changes to a dependent variable. For example, a researcher who produces different types of stainless steel formulations to test which is most resistant to seawater.

Lab Experiment

An experiment in a lab where many variables can be controlled. For example, testing a fertilizer on plants in a lab where you can control extraneous variables such as light, temperature, humidity and water.

Field Experiment

An experiment that occurs in the real world where some variables can’t be controlled. For example, testing a fertilizer on a farm.

Randomized Controlled Trial

A standard for important experiments such as clinical trials for medical treatments that uses random allocation of participants to treatment and control groups to achieve statistical control over factors that may influence results. For example, if body weight may influence the outcome of a trial, people can be randomly distributed into treatment and control groups such that body weight distributions are likely to be similar in each group.

Natural Experiment

A natural experiment is a real world situation that resembles an experiment. This is useful were experiments would likely be unethical. For example, a factory where workers are currently exposed to a hazardous substance.

Constructive Research

Constructive research addresses a real world problem. For example, computer science research that seeks to design algorithms to perform a computation more efficiently.

Research & Development

Constructive research that designs a process, method, procedure, device, machine, product or service. For example, rapid prototyping of possible battery technologies.

Innovation Principles

Innovation Principles Jonathan Poland

Innovation principles are guidelines that an organization adopts as a basis for innovation activities. They are typically considered foundational policy that are intended to guide innovation decisions, culture, programs and projects. Here are some general principles that have achieved widespread adoption in this core area.

Creativity Of Constraints
The principle that well designed constraints often spark creative results. Counters the common idea that creativity is boundless and unrestricted. Most examples of works that are considered creative genius were developed in a framework of constraints. For example, music is almost always based on constraints such as a harmonic framework, chord progression, conventions, style, genre or tradition.

Customer Focus
Valuable innovations fulfill customer needs and wants.

Design For Scale
Designing things to be useful to a great number of people. Design for scale also implies that innovations benefit from economies of scale, meaning that unit cost drops as more is produced.

Design For Sustainability
Aligning design with the sustainability values of the organization such as designs that are reusable, made of low-impact materials, recyclable, resource efficient and produced without harmful byproducts.

Fail Often
Fail often is a method of innovation that tests a large number of fearless ideas with the reasonable expectation that most will fail and a few will succeed. According to the fail often method, a lack of failure is a sign that a company or department is not pushing hard enough to innovative.

Fair Well
Fail well is the design of tests to fail quickly, cheaply and safety. It is used by innovation methods such as fail often to minimize the impact of innovation testing.

Feedback Loop
An iterative process of using feedback from sources such as customers to quickly improve an innovation.

Innovation Ability
The principle that innovation is an ability that is related to other abilities such as problem solving, design and divergent thinking. Innovation is widely considered a tacit ability that is difficult to detect with standardized testing.

Innovation Culture
An organization’s values, norms, habits, history, symbols and work environment impact its ability to innovate. Based on the observation that some corporate cultures are able to generate a steady stream of valuable innovations while others struggle.

Innovation From Anywhere
The principle that innovation can come from anywhere. Typically applied by creating processes that are accessible to all the employees to submit innovations for evaluation and testing. In many cases, customers, partners and the community may also be invited to submit innovations. Such processes may include incentives for successful innovation.

Measure And Improve
The principle that each innovation be measurable. A means of measurement is often a basic criteria for accepting innovations for evaluation.

Mission Statement
A mission statement for the innovation program. Innovative organizations typically have a strong sense of mission.

Open Innovation
Innovation is shared in the open in order to harden designs with peer review and feedback.

Order Of Magnitude
The goal of innovation is to take leaps forward by creating things that are an order of magnitude better than the current state of the art.

Precautionary Principle
The principle that an innovation be generally accepted as safe and sustainable before being launched to the public or released into the environment.

Reuse And Improve
Innovation reuses existing knowledge, technology and resources where possible. Discourages the common perception that innovation is always greenfield. In many cases, valuable innovations are a slight variation of an existing product, service or process.

Ship Often
Innovation is shipped as quickly as possible and updated often to rapidly improve.

Test And Learn
Innovation is tested early and often. Analysis and insight into testing results is captured as knowledge.

Vision
A vision statement for the innovation program that paints a compelling picture of the future. In many cases, a principle is established that each innovation program is to publish a vision statement.

Innovation 101

Innovation 101 Jonathan Poland

Innovation is the process of creating new ideas, products, or processes that add value to a company. This can be done in a number of ways, such as through research and development, collaboration with other organizations, or by encouraging employees to think creatively and come up with new ideas. To foster innovation, companies may provide resources and support for employees to explore new ideas, encourage a culture of creativity and risk-taking, and create channels for employees to share and develop their ideas.

Here are some steps your company can take to foster innovation:

  1. Encourage a culture of creativity and risk-taking: This can involve creating a supportive environment where employees feel comfortable sharing new ideas and taking risks. This may also involve providing resources and support for employees to experiment and explore new ideas.
  2. Foster collaboration: Innovation often happens when people from different backgrounds and perspectives come together to share ideas and build on each other’s work. Encouraging collaboration and cross-functional teamwork can help generate new ideas and accelerate innovation.
  3. Provide resources and support for idea development: This can involve providing financial resources, time, and other support to help employees develop their ideas. This may also involve creating channels for employees to share and receive feedback on their ideas.
  4. Encourage employees to learn and grow: Innovation often comes from employees who are constantly learning and developing new skills. Encouraging employees to pursue professional development opportunities and providing support for learning and growth can help fuel innovation.
  5. Embrace failure: Innovation often involves taking risks, and not all ideas will be successful. It’s important to create a culture where failure is seen as an opportunity to learn and grow, rather than something to be avoided. This can help employees feel more comfortable taking risks and trying new things.
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