Mastering the Art of Innovation: A Step-by-Step Guide

I recently had the pleasure of being interviewed for a podcast on “Solving the implementation problem of digital innovation” where I discuss the latest trends and developments in digital innovation for automotive and mobility.

During our discussion, we focused on prioritizing ideas, assembling a team for implementing and launching digital innovations, and navigating potential challenges and pitfalls in the innovation process.

At Berylls Digital Ventures, we are always seeking to improve and evolve our innovation process, as it is crucial to generating viable ideas in the realm of automobility. In this article, we aim to share our knowledge and insights on this important topic.

Berylls Digital Ventures Innovation Loop

Step 1: Ideation

Ideation workshop (image by Dall-e 2)

The innovation process is an integral part of any successful business, and it starts with ideation. This is the phase where new ideas are generated and brainstormed. It’s important to create a culture within your organization that encourages and supports this process, allowing you to continuously improve and evolve. There are several ways that ideas for innovation can be generated in companies:

1. Brainstorming sessions: These are structured meetings where team members come together to generate ideas and discuss potential solutions to problems.
2. Employee suggestion programs: Some companies have systems in place for employees to submit their ideas and have them reviewed by management.
3. Innovation challenges: Hosting a competition where employees can submit their ideas for a chance to win prizes or recognition can generate a lot of new ideas.
4. Innovation workshops: Conducting workshops or hackathons where employees can work together to generate and develop new ideas can be a effective way to spark creativity.
5. Cross-functional collaboration: Encouraging employees from different departments to collaborate and share ideas with one another can lead to the generation of new and innovative ideas.
6. Customer feedback: Gathering feedback from customers and using it to identify areas for improvement or new product or service offerings can also generate ideas for innovation.

Step 2: Prioritization

In many cases, companies have no shortage of ideas for innovation, but struggle to effectively implement them. One common mistake is trying to launch too many ideas at once, which can dilute resources and hinder the success of any individual idea. To evaluate your ideas, go through your list and consider their desirability (will users want this product or service?), feasibility (do you have the resources and partners to build it?), and viability (can you make money with it?). Consider factors such as the resources required to implement the idea, the potential return on investment, and how it fits into your overall business strategy.

1. Score your ideas: Based on your evaluation, assign each idea a score to help you prioritize them. You can use a simple scorecard system, such as assigning a value of 1 to 3 to each criterion.
2. Refine your list: Once you have ranked your ideas, review your list and consider which ones you should focus on first. You may need to eliminate some ideas that are not feasible or not aligned with your goals, or combine similar ideas into one.
3. Prioritize your top ideas: Based on your ranking and refinement process, you should have a list of your top ideas that you can focus on. It’s important to be selective and focus on a smaller number of high-quality ideas, rather than trying to tackle too many at once.

By following this process, you can prioritize your ideas and focus on the ones that are most likely to drive meaningful progress for your business.

Step 3: Validation

User interview (image by Dall-e 2)

Once you’ve narrowed down your list of ideas to the most promising ones, it’s time for validation.

Validating a product or service involves a two-pronged approach: on one side, you need to thoroughly understand the business model and value proposition, including the pain points it addresses and the revenue streams it generates. One way to do this is by using a business model canvas to map out the key elements of your product or service. A crucial element of the business model is the business case, which involves understanding the unit-economics and calculating the potential to generate revenues and break even on your investments based on a detailed list of assumptions. This helps you determine the viability of your product or service, and ensure that it has the potential to be profitable.

On the other hand, it is equally important to gather feedback from potential users to understand their needs and pain points. This can be done through methods such as market research, ethnographic research, or customer interviews. By iteratively testing the concept with users, you can determine whether it has the potential to solve a real problem or meet a real need. This feedback can then be used to refine and improve the product or service.

The Lean Startup method is particularly useful in this phase, as it emphasizes the importance of validated learning. By testing your assumptions with real users, you can quickly identify and pivot away from ideas that are not resonating, and focus on those that have the most potential. The Lean Startup process is different from user research methods such as interviews and ethnographies in several ways.

1. Interviews and ethnographies are typically used to gather qualitative data on users, such as their needs, pain points, and perceptions of a product or service. The Lean Startup process, on the other hand, is focused on gathering quantitative data, such as how many users are willing to sign up for a service or buy a product.
2. Interviews and ethnographies involve talking to people, while the Lean Startup process involves testing your assumptions with real users by creating a landing page and asking users to follow through on a call to action such as leaving their email address or putting money down for a reservation on a product (waitlist). This allows you to gather data on users’ actual behavior, rather than just their perceptions or opinions and gives you a more accurate understanding of what users are willing to pay for or engage with.
3. A/B testing is another way in which the Lean Startup approach is superior to user interview to validate an idea. A/B testing is a method of comparing two versions of a product or service to see which one performs better. By launching two different landing pages and driving traffic to them (e.g. via Google Ads or Linkedin campaign) this can help you identify which features are most important to users and which ones can be removed or improved.
4. The Lean Startup process is more iterative and allows for quick pivoting and testing, whereas user research methods such as interviews and ethnographies are typically more one-time events.

Overall, the Lean Startup process allows you to gather more credible data on users’ behavior, as it allows you to test your assumptions with real users in a controlled environment. This helps you identify any pain points or issues early on, which can save time and resources in the long run. It also allows you to validate product-market fit and increase the chances of success for your digital products and services.

Step 4: Prototyping

Prototyping is the next step in the innovation process after an idea has passed the validation stage. The main focus of prototyping is on exploring the design and the user experience of a product or service. It involves creating a rough version of the product or service, which can then be tested and refined. The purpose of prototyping is to identify any issues or problems with the concept before committing to building the final product.

There are different levels of prototyping, ranging from low-fidelity prototypes (e.g., in Figma) that are quickly and inexpensively created, to high-fidelity prototypes that are more detailed and closely resemble the final product. The level of fidelity you choose will depend on the goals of the prototype and the stage of development.

Prototyping allows you to gather valuable feedback and insights from users, which can be used to refine and improve the product or service. It also allows you to test different ideas and approaches, and determine which ones work best. By going through the prototyping process, you can save time and resources by identifying and addressing issues early on, rather than after the final product has been built.

Prototyping is a great way to validate the design, user flow, and usability of a product, but it does not necessarily provide insight into whether the product will be successful in the market. The Lean Startup methodology outlined above, on the other hand, helps to validate whether the product idea will be successful by testing it with real users, which increases the chances of success for digital products and services.

Step 5: Building

People coding (image by Dall-e 2)

The building phase is the next step in the innovation process after the prototype has been tested and refined. It involves creating the MVP (minimum viable product) version of the product or service, which is a streamlined version that includes the core features and functionality.

The MVP allows you to test the product or service with a larger group of users and gather additional feedback and insights. This feedback can be used to further refine and improve the product or service, as well as inform the development of future versions.

It’s important to keep in mind that the MVP is not the final version of the product or service, but rather a stepping stone on the path to the final product. By launching the MVP and gathering feedback, you can validate the product or service and determine whether there is a market for it before committing to the full development of the final product.

In addition to being feasible to build and aligned with your business goals, the MVP version of your product or service should also be viable, meaning that it is already useful enough to generate revenue. This is an important consideration, as the MVP is meant to be a streamlined version of the final product that includes the core features and functionality.

While the MVP may not include all of the bells and whistles of the final product, it should still be able to solve a real problem or meet a real need for users. By launching the MVP and gathering feedback, you can validate the product or service and determine whether there is a market for it before committing to the full development of the final product. This helps ensure that your product or service has the potential to be profitable and viable in the long term.

Step 6: Launch

The launch phase is an exciting time in the innovation process, as it marks the moment when your product or service is introduced to the market and made available for purchase or use. This phase is critical for generating buzz and getting people excited about your new offering.

There are a few key elements to consider when launching a product or service:

1. Marketing: Develop a marketing plan to promote your product or service and generate awareness among your target audience. This can include tactics such as advertising, social media, public relations, and content marketing.
2. Pricing: Determine the price point for your product or service, taking into account factors such as the value it provides to customers, the cost of production, and the competition.
3. Distribution: Decide how you will make your product or service available to customers, whether it’s through your own website, third-party retailers, or a combination of both.
4. Customer support: Put systems in place to support and assist customers, such as a customer service team or online resources.

By effectively executing the launch phase, you can increase the chances of success for your product or service and drive adoption among users.

Step 7: Scaling

Growth hacker (image by Dall-e 2)

Once the product or service has been launched and is gaining traction in the market, the next step is to focus on scaling. This involves expanding the reach of the product or service and increasing its adoption among users. There are a few key strategies that can help you achieve this:

1. Growth hacking: Use data-driven, unconventional tactics to rapidly grow your user base. This can include tactics like viral marketing, A/B testing, and leveraging existing platforms and communities.
2. Partnerships: Partner with other companies or organizations to expand your reach and access new markets or customer segments.
3. New channels: Explore new channels for distributing and selling your product or service, such as international markets, e-commerce platforms, or wholesale partnerships.
4. Product expansion: Consider expanding your product line or adding new features to your existing product or service to drive adoption and increase revenue.

By focusing on scaling, you can drive the growth and success of your product or service and reach new heights of adoption and revenue.

Overall, the innovation process is an ongoing cycle that involves constantly generating new ideas, prioritizing them, and then validating, prototyping, building, launching, and scaling the most promising ones. By following this process, businesses can stay ahead of the curve and continue to innovate and evolve.