Innovation Management – the value of due diligence
One consideration innovators should be wary of in the rush to market is to not forego due diligence. That is, the temptation to forego, among other things, investigation into an idea’s feasibility, adequate market analysis and the questioning of the dominant assumptions. Due diligence is important for a number of reasons, including:
Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation. There are other useful definitions, for example, creativity can be measured according to the number of ideas produced, the diversity of those ideas and the novelty of those ideas.
There are distinct processes that enhance problem identification and idea generation and, similarly, distinct processes that enhance idea selection, development and commercialisation. Whilst there is no sure fire route to commercial success, these processes improve the probability that good ideas will be generated and selected and that investment in developing and commercialising those ideas will not be wasted.
The Value of Duel Diligence
One consideration innovators should be wary of in the rush to market is to not forego due diligence. That is, the temptation to forego, among other things, investigation into an idea’s feasibility, adequate market analysis and the questioning of the dominant assumptions. Due diligence is important for a number of reasons, including:
a) There may be no time before a product is rushed to market
but time always seems to be available when faults are discovered. The cost of retracing steps and reengineering products runs into the billions.
b) Most innovations fail. And one of the major reasons for failure is the lack of a focused product that solves particular problems.
c) Group-think and other negatives cause bad decision-making and consequently unrealistic expectations.
Clasic examples include the Segway Human Transporter and the Internet boom of 2000.
These topics are covered in depth in the MBA dissertation on Managing Creativity & Innovation, which can be purchased (along with a Creativity and Innovation DIY Audit, Good Idea Generator Software and Power Point Presentation) from http://www.managing-creativity.com.
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Kal Bishop, MBA
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ABOUT THE AUTHOR
Kal Bishop is a management consultant based in London, UK. He has consulted in the visual media and software industries and for clients such as Toshiba and Transport for London. He has led Improv, creativity and innovation workshops, exhibited artwork in San Francisco, Los Angeles and London and written a number of screenplays. He is a passionate traveller. He can be reached on http://www.managing-creativity.com.
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