Managing The Innovation Funnel
The amateur innovator is a "one hit wonder". The professional innovator is able to create a stream of killer products.
One key is to properly manage the innovation funnel to ensure that you have a stream of ideas leading to products.
What should be the flow through the funnel? It depends on:
Your budget
Your staffing resources
Your organizations ability to absorb "new" products/ideas

If your objective is to generate one successful product each year, then the following can be used as a guideline:
Search/find 110 concepts (well defined and understood) [10 per month]
Scrub and find 11 qualified ideas from the 110 concepts [1 per month]
Start product development on 3 to 4 of the qualified ideas [1 per quarter]
Launch 1 to 2 products from the ones that went through product development [1 every six months]
Have 1 successful product per year
Things to keep in mind when developing a well defined innovation funnel management capability
Set the target for each stage of your innovation funnel
Ensure time and resources are properly allocated to each stage of the funnel
Measure, track and adjust the targets to meet your objectives
Hold regular audits of the funnel and check
Number of concepts under review
Number of qualified ideas
What is the idea mortality rate? (make sure you killing off enough ideas)
Measure the impact of the successes

Phil McKinney on March 25, 2007 10:06 PM |