Innovation management: does the idea fit the company?
Creativity can be defined as problem identification and idea generation, while innovation can be defined as idea selection, development and marketing.
There are different processes that improve problem identification and idea generation, and similarly different processes that improve the selection, development, and commercialization of ideas. While there is no sure path to business success, these processes improve the likelihood that good ideas will be generated and selected, and that the investment in developing and commercializing those ideas will not go to waste.
One of the useful methods of evaluating ideas is to analyze whether the company, team or individual responsible for turning an idea into commercial success has the required fit.
Business fit can be measured in several ways:
a) Does the idea have a strategic fit with the company? It can be a great idea, but if it lacks a strategic fit, its development and marketing can cause problems in the long run. In this case, there are three options: remove it, license it, or create a joint venture.
b) Does the company have the technical expertise to make it work? If not, where can it be found? What is the cost of importing technical expertise?
c) Does the organization have the business competencies to make it work? These include competencies in marketing, new product development, the ability to manage highly diverse and dispersed employees and facilities. Again, is the idea big enough to justify the expense?
These topics are covered in depth in the MBA thesis on Managing Creativity and Innovation, which can be purchased (along with a DIY audit on creativity and innovation, Good Idea Generator software and Power Point presentation) at http: / /www.managing-creativity. com.
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Kal Bishop, MBA
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