What are the best performance indicators for open innovation in the ideation phase?

Diversity is critical in ideation, and this will be increasingly true as innovators begin to master supplemental technologies like Gen AI. Where can your ideas begin to connect dots on solving consumer problems in unique ways? Diversity within the thinking can be amplified, and the lack of it yields meh.

The first thing the team needs to agree on is the definition of the problem to be solved. What is the real problem we are solving that, if we solve it, will significantly improve or accelerate the consumer acceptance of our product? Second, are there currently in the market solutions for this problem in other industries? Here is where casting a wider net and open challenges and contests might help attract a diverse pool of solutions. I like a good technical challenge, and again, clarity on the problem to be solved is the key.

Quantity isn't as valuable as the potential diversity of thought that can sometimes come along with quantity. Thinking more broadly or more deeply allows for a train of thought that differs from the current path. Ideation is valuable because it offers something of a different starting point. If we start differently than we did 'last time' we will generally end up somewhere different. And getting to a truly different starting point will depend deeply on the diverse thought that will come from a good ideation session.

I think innovative ideas should come from the validated need but not from our imagination. The source of idea is very important. I would look to the profile of company or people who provide these ideas it may save a lot of time and other resources.

Diversity of THOUGHT is key here. 10 people who all look different but think the same does NOT help! Sources involved in ideation is very important--stratifications by geography, level within the org, department, etc. I would also breakdown ideas into 1 of 3 buckets: 1.) New to the world (patentable), 2.) New to our Industry/Market (Copyright/marketing protections), and 3.) New to our Company/Department/Team.

The challenge is timing. Having a clarity on time to market, competition and market appetite is essential. Blue Oceans and defensible moats are becoming nearly impossible to archive. Finding opportunities at key technological convergence points is a remarkably simple way to find untapped potential.

In my experience, the best way to gauge the quality of a proposed innovation has always been to see how well it correlates to a clear and compelling customer need (or combination of needs). That's what creates economic viability, which is the critical parameter. Technology is important, but never forget that it must be the means to a desirable economic outcome. It has no inherent value otherwise. Identifying the specific solution we need to provide, then contrasting that with the state of technology needed in order to deliver it, helps us in creating true value (providing improved functionality at same or lower cost).

Additionally, Suitability and Acceptability of the ideas (i.e new product innovations) is vital. This entails whether the idea/innovation has a Unique Value Proposition in the existing market that sets them apart from competitors. And whether the idea/innovation has a significance to enhance product experience which will be frequently appreciated by the consumer.

Understanding the stage where the product lies currently on the product life cycle makes huge difference in getting the idea aligned with feasibility. If we are talking about a MLP of a new product then it’s metrics like market research, user needs and current trends would help in identifying quality ideas. On other hand if the product is in growth phase then the quality ideas would reflect the ability to increase end user engagement and identifying new areas to grow. Finally, if the product is in mature phase, then quality idea would be the one which decreases the churn rate of the users and keeps the product relevant. Lastly in case of feasibility we should address technical, financial, marketing and sales feasibility of the organisation.

Assessing the ROI and business model compatibility of the new ideas is crucial. The potential return on investment (ROI) can be calculated by forecasting the potential revenue the idea could generate and subtracting its estimated costs. Doing so lets you determine whether the idea is worth pursuing and make informed decisions accordingly. When thinking about a new business idea, evaluating how well it fits with your existing business model is essential. If the concept requires a significant shift in your current model, it may be less feasible and require more resources and effort.

Muitos projetos de inova??o aberta acabam morrendo antes mesmo de apresentarem resultados significativos, pois alguns desafios abertos para a colabora??o do ecossistema podem n?o estar t?o claros, bem como as expectativas da empresa com aquela iniciativa. Isso acaba atraindo solu??es n?o t?o alinhadas e op??es n?o muito interessantes para a resolu??o do problema. Por isso, uma fase muito importante para o sucesso de qualquer inova??o aberta é a defini??o do desafio, que precisa ser muito claro, estratégico e prioritário, já que vai exigir muito esfor?o e tempo dos times técnicos.

Additionally, Suitability and Acceptability of the ideas (i.e new product innovations) is vital. This entails whether the idea/innovation has a Unique Value Proposition in the existing market that sets them apart from competitors. And whether the idea/innovation has a significance to enhance product experience which will be frequently appreciated by the consumer.

In my experience, the best product teams display a few things that reflect in all aspects of the outcomes. They deeply grasp product and company market alignment, feature sets, value proposition, and their inter-relationships. They productively display team-gel by actively debating MVP feature sets and quickly converge. I've found a great informal metric to watch how convergent/divergent team thinking resolves in a few areas. This generally predicts how well the team will work over the product life cycle and how well market-aligned the final product will be.

When assessing ideas, it's important to align selection criteria to company goals and feasibility while not discouraging those with good and wild ideas that are not aligned with your goals. What I have done is to create 2 different categories for idea selection. The first is the "go forward" ideas that will be taken into the development phase; these align with company business priorities and technical capabilities. The second category is are the "provocative" ideas that are really interesting, creative, or exciting but do not fit into the organization's current plans. This way, people see that exciting ideas are appreciated even if they don't go into forward to execution.

Diversos parametros ou KPIs podem ser utilizados para avaliar o fit das ideias com o business. Pode come?ar com uma simples vota??o entre diferentes stakeholders no que tange a complexidade, uniqueness, readiness/capabilities ou consumer relevance. Ou dependendo do qu?o avan?adas s?o as ferramentas de avalia??o, teste e prototipagem, uma mesma ideia pode ser reinventada ao longo do processo iterativo para se tornar mais próxima do business.

Medir de forma robusta e assertiva, combinada com governan?a, vai ajudar na decis?o de descontinua??o ou n?o, mas de forma segura, de alguma inova??o. N?o saber medir o sucesso ou fracasso, pode descontinuar boas inova??es, ou reviver ideias que já poderiam ter sido validadas e descontinuadas.

A final indicator to consider is the impact and learning of the ideas generated through open innovation. This can reflect the outcomes and benefits of the ideas for your innovation performance and growth, as well as the insights and knowledge gained from the open innovation process. You can measure the impact and learning of ideas by using metrics such as the number of ideas selected for further development, the revenue and profit generated from the new products or services, the customer satisfaction and loyalty achieved, the intellectual property and patents obtained, and the lessons learned and best practices identified.

Measuring impact in ideation involves tracking idea adoption rates, success of implemented ideas, participant engagement, and external recognition. Learning is gauged through feedback loops, iterative development, skill enhancement, documentation, and the adoption of new techniques. These metrics capture the practical influence of generated ideas, participants' evolving skills, and the adaptability of the innovation process. Balancing quantitative measures like adoption rates and qualitative assessments such as feedback analysis ensures a comprehensive evaluation, vital for refining the innovation strategy and enhancing future ideation phases.

Evaluating the impact and learning in open innovation is essential. This assessment goes beyond results, focusing on the lessons learned. I work with four key questions: 1) What did we plan? 2) What did we actually do? 3) What positive outcomes do we want to maintain? 4) What needs to be corrected? An open discussion, focused on opportunities rather than assigning blame, accelerates learning and enhances the innovation process.

POR SUPUESTO, es el factor mas importante con la PASION por la idea. Toda gran innovación debe nacer de un ciclo de aprendizaje y su impacto final depende de la retroalimentación y ajustes rápidos que realicemos y que CONSTRUYAN el producto o el proceso definitivo. Aquí si es absolutamente importante la COLABORACION de los equipos para conseguir el mayor valor financiero posible de la innovación.

I think looking at how militaries operate can be a great approach towards open innovation. How an SOP based approach is improvised in situations of stress and extreme pressure can lay the foundation of innovation around set processes in an organisation. If it aligns with overall objectives and strategy, bringing it to market swiftly becomes a real possibility. During my tenure in high altitude areas, me and my team would improvise routes, try to create tactical innovations but keep the objective fixed and we always had inputs that could be emulated by other missions.

Just a small history to justify why I believe in open innovation: My town has lots of coffee farms. There are one very good farm. This farm has the best coffee. The owner of this farm started teaching all neighbors his technics so that they could also have good coffee trees. This is essential to avoid pests at his farm. I believe in open innovation because everyone are intended to get best results.

In fostering a collaborative environment, it's crucial to handle every idea with respect. When someone shares an idea, it should never be dismissed or overlooked without giving them a clear reason why. Sometimes, leaders might instantly see why an idea might not be the best fit, but it's important to communicate this back to the person who suggested it. When people understand the reasoning behind decisions, they feel more valued. If this step is skipped, there's a risk that team members might feel their contributions aren't appreciated, which can dampen their enthusiasm to share in the future. Open communication is key to ensuring everyone feels like a valued part of the team.

Not mentioned but critical to open innovation is clarity of communication. Many great ideas die early from a lack of cross team understanding of value &/or relevance. The elevator pitch is a great way to test this. Can anyone on the team convey the value to someone not on the team. Then can that person do the same with someone else.

For open innovation success, an organization must cultivate a culture that embraces external ideas and shows readiness to buy or license them.