How do you test innovation hypotheses?

1 Lean Startup Methodology

One of the most widely used innovation frameworks is the lean startup methodology, developed by Eric Ries. The lean startup approach is based on the idea of building a minimum viable product (MVP) that delivers the core value proposition to a segment of early adopters, and then measuring and learning from their feedback. The feedback loop is called the build-measure-learn cycle, and it helps you test your hypotheses and pivot or persevere based on the results. The lean startup methodology is suitable for situations where you have a high level of uncertainty and need to validate your problem-solution fit and product-market fit.

3 Business Model Canvas

A third innovation framework that can help you test your hypotheses is the business model canvas, created by Alexander Osterwalder and Yves Pigneur. The business model canvas is a visual tool that helps you map out and describe the key elements of your business model, such as your value proposition, customer segments, channels, revenue streams, cost structure, and key resources. The business model canvas helps you identify and test the most critical assumptions and risks in your business model, and experiment with different scenarios and alternatives. The business model canvas is suitable for situations where you need to design and validate a viable and scalable business model.

4 Experiment Canvas

A fourth innovation framework that can help you test your hypotheses is the experiment canvas, developed by Ash Maurya. The experiment canvas is a template that helps you design and document your experiments in a structured and consistent way. The experiment canvas consists of nine blocks: hypothesis, test, metric, criteria, outcome, learning, decision, action, and status. The experiment canvas helps you define and prioritize your hypotheses, choose the best test method, measure the relevant metric, set the success criteria, analyze the outcome, capture the learning, make a decision, take an action, and track the status. The experiment canvas is suitable for situations where you need to run multiple experiments in parallel and compare and communicate the results.

Testing innovation hypotheses is not a one-time event, but a continuous process of learning and improving. By using these innovation frameworks and models, you can increase your chances of creating successful and impactful innovations that meet your customers' needs and expectations.