Though it is obvious that idea is the source of innovation, a large portion of companies do not have the method to create and utilize ideas effectively.
(A.D.Littele, Innovation Excellence Study, 2005)
Strategy is the sole direction for idea collection, and it is essential to identify strategic arena for innovation.
Alignment with strategy is the key success factor of idea management.
It is important to understand that innovation requires long-term investment, and strategically separate from short-term budget, in order to protect from short-term cost reduction.
There are two types of idea; innovative ideas and incremental ideas, and it is not easy to come up with innovative ideas. What is important to understand is that both ideas are crucial, and there are different management needed for each type of ideas.
95% of the new ideas are incremental, for improving existing products and services.
These ideas tend to be accepted without difficulty because it is easy to imagine the success from past experience.
Remaining 5% are the innovative ideas, which tend to be rejected easily because it is very difficult to imagine the success from past experience.
It is important to understand that most of the innovative ideas are out of the existing business frame, and require a different scheme of idea evaluation.
Essence of idea evaluation is the “value” of the idea, not “who” proposed the idea.
In order to generate high value ideas, organizational hierarchy needs to be eliminated among the entire process of idea collection and evaluation.
It is proven that by implementing an IT system to collect and evaluate ideas, level of participation to innovation activities rises, and both quantity and quality of the ideas dramatically increase at the same time.
We can support improve your innovation performance by implementing best-in-class idea management software and process.