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March 22, 2012 / compassioninpolitics

Decision making heuristics and innovation strategies

Here are a number of heuristics on innovation:

* Diffusion of Innovation (can help with expectations & timing): http://en.wikipedia.org/wiki/Tec…
* Blue Ocean http://en.wikipedia.org/wiki/Blu…
* Short term risk versus long term gain. (i.e. 5% now for larger gains based on sells projections or demonstrated market potential).
* Narrative of invention, innovation, heroes, and risk taking. (Edison, Steve Jobs, P & G). Narrative of discovery (Nobel Laurets, Lewis & Clark, etc..)
* Aphorisms about courage, fear, and risk taking
* Darwin/Evolution (inevitability of coming change)
* Grow or Die (Progress vs. Static)
* Breaking analysis paralysis.
* Specific explanation of how lack of innovation is hurting the firm or losing customers currently
* How innovation or new products or services may fit in existing company strategy (or overall mission)
* Opportunity cost of not acting. Risk of inaction. This can be articulated as a unit of time and/or a dollar value unit as well as overall market dominance and firm flexibility.
* Statistical data based on customers buying habits & desires
* Data based on competitors moves
* Theory on both sides of the first mover debate
* Customer decisions and feedback with iteration–Lean methodology (particularly when applied to start ups)
* Big Hairy Audacious Goals (B.H.A.G.s from Good to Great)
* Design thinking filters (observation with deep interviews, ethnography, role playing, scenario planning, etc…)
* Various strategic templates (SWOT & various permutations, Porters 5 Forces, Boston Consulting Group Matrix, and 7Ss from McKenzie, etc…)
* Gartner’s hype cycle: http://en.wikipedia.org/wiki/Hyp…
* Innovation as a form of hypothesis testing and/or confirmation (which helps you learn about product space, customer, and the opportunities). Innovation as experiential learning.

Three questions then seem pertinent:

* Is it the right time in terms of the market? What has the market demonstrated to date?
* Is this right for us (culturally)? Or how can we adjust if its not?
* Do we have the resources/firepower? How can we allocate resources?

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