Topic: Innovation Management

Reference: Dalton, Michael A. “Are too many ideas killing innovation efforts?”Innovationtools. http://www.innovationtools.com/Articles/EnterpriseDetails.asap?a=442. June 18, 2009.

Typically after a good strategic planning session, ideas and project concepts are flowing and teams are energized around the concept of creating new value. Typically, a few of the ideas generated are really good and quite a few are not ready for prime time. The key is being able to determine which ones offer your organization the most value. Another issue is to recognize that not all of the concepts can be developed because of resource and time constraints.  There is even a theory suggesting that juggling even one more project than can be adequately staffed and developed is counterproductive. In reality, it can have the opposite impact of slowing product releases and increasing operational risk. In the referenced article the commentator investigates the issues related to managing an innovation pipeline and ultimately determines that limiting the number of innovation ideas is much more efficient and effective than going after too many projects at once.  In so doing, the commentator makes a strong case for focused innovation development done sequentially. “In fact, a more sequential, focused approach reduces risk. Getting some projects done sooner reduces the market risk of competitors getting to market first. Additionally, delaying the commitment point on the next opportunity adds flexibility.” To me the issue is really about managing your opportunity cost and increasing the scale of your cash flow. You have to have enough projects to produce potential winners-defined as projects adding significantly to cash flow, while limiting the resources used to chase useless applications and products. You have it about right when new winners are being launched without significant delays.  Good organizations are constantly tinkering with the mix, the pipeline and the production schedules to create the right value. Let me know what steps your organization is taking to properly manage innovation.

Comments

Add New Search

Write comment
Name:
Email:	do not notifynotify
Title:
	Please input the anti-spam code that you can read in the image.

Powered by !JoomlaComment 3.23

3.23 Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."