Mitigating Product Innovation Risks with the Forge Innovation Rubric— Novelty and Originality (Part 2/5)
A diagnostic tool designed to help innovators identify and validate inherent risks in product innovations, thereby evaluating its market potential
The Forge Innovation Rubric (FIR), developed by Forge Innovation & Ventures, is a diagnostic tool designed to help innovators systematically validate and mitigate the inherent risks associated with product innovations, primarily industrial hardware solutions. FIR consists of five parameters to assess these risks. In the previous blog, we explored the first parameter — Necessity and Significance. In this blog, we will focus on the second parameter — Novelty and Originality.
Novelty and Originality
This parameter underscores the importance of developing novel and original solutions, which are essential for industrial hardware startups to differentiate themselves by offering unique value that attracts customers, partners, and investors. A novel solution forms the foundation of a startup’s competitive advantage, enabling it to address challenges more effectively and deliver greater value than alternatives. Additionally, innovative solutions could open new market opportunities, attract strategic partnerships, create pathways for generating IPs, and help sustain long-term competitiveness.
“Bright Automotive, founded in 2008, exemplifies the challenges faced by startups in the industry. The company sought to revolutionise fleet management with its fuel-efficient plug-in hybrid vehicle, the IDEA. However, despite initial enthusiasm, Bright Automotive struggled due to a lack of significant novelty compared to established competitors also working on hybrid technologies. The IDEA’s performance did not sufficiently differentiate it from existing solutions, leading to substantial funding challenges. Owing to which, it was unable to secure the necessary capital and scale its operations, Bright Automotive ultimately shut down in 2012, failing to compete effectively with larger, more established automakers.”
To mitigate such failure, it’s important to evaluate the novelty and originality of the solution through three factors, as explained below:
1. Unique & Differentiated Solution Concept
For a product or solution to stand out, it must distinguish itself by offering significantly greater value than existing alternatives. One way to achieve this is through disruptive innovation — innovations that open up new market opportunities by providing low-cost & low-complexity solutions, enabling access to markets that were previously unable to afford such offerings.
Consider industrial robotic solutions from companies like ABB or Fanuc, which are expensive and require skilled operators, making them accessible only to large industrial firms with complex operations. For a small manufacturing company needing to perform simple tasks, these solutions are neither cost-effective nor practical. In contrast, a simple, easy-to-use, and affordable robotic solution would be more suitable. This is precisely what Orangewood Labs, a Forge portfolio startup, has achieved, as illustrated below.
“Orangewood Labs, a Forge portfolio startup, embodies disruptive innovation by offering affordable and simple robotic solutions, making advanced technologies accessible to markets that were previously priced out. Their 6-axis collaborative, tele-operable robots are designed for ease of use, allowing operators with no specialised skills to operate them efficiently. With an 830mm reach, 5kg payload capacity, and a lightweight design of just 23kg, these robots are also quieter than traditional industrial robots. This low-cost, low-complexity approach opens up new opportunities for smaller companies to adopt cutting-edge robotics without the prohibitive costs of traditional industrial automation.”
2. Holistic Solution Offering Conceptually Validated Functionality
For any industrial solution to become an enduring product in the market, it must be holistic, meaning it should fully address the problem in its entirety rather than just partially. This ensures the solution includes all necessary features and functions to meet the needs comprehensively.
Additionally, the solution should function independently, without relying on other products or systems to operate effectively. This autonomy simplifies implementation and usage, significantly lowering adoption barriers. By eliminating dependencies, it reduces complexity and costs, ultimately delivering greater value to customers.
“Ethereal X, a portfolio startup of Forge, is developing a fully reusable liquid rocket engine and a medium-lift reusable rocket, aiming to offer the most affordable and sustainable space transportation at a cost as low as $350 per kilo, which is 1/35th of the global average. While SpaceX has led the way in reusable rockets, Ethereal X seeks to distinguish itself by being the only company to provide entirely reusable rockets in the medium-lift category. Currently, Ethereal X is designing and manufacturing its own engines and rockets, creating a complete solution for launching satellites and payloads into space, with a proven and validated approach to ensure functionality and performance.”
3. [Futuristic] Potential to Emerge as an Enduring Solution
Any successful product or solution should have a long term relevance, for that solution should address the root cause of the problem rather than merely treating its symptoms, this ensures that it’s a permanent or an enduring solution, rather than a quick fix.
Also, it must tackle broad challenges rather than narrow or point problems. Solutions focused solely on point problems are less likely to evolve into full-fledged products and may instead remain as isolated solutions or projects.
“Chimertech, a Forge portfolio startup, provides a comprehensive solution for managing subclinical mastitis in cattle through its innovative diagnostic and therapeutic technologies. Their flagship product, Quadmastest, is a reagent-free, rapid, point-of-care diagnostic device that delivers results in just 10 seconds — dramatically faster than traditional methods, which require hours and laboratory facilities. In addition to Quadmastest, Chimertech’s therapeutic products, Fine Kine and Iogine, help prevent bacterial infections and mastitis. Together, these products form an end-to-end solution for managing subclinical mastitis. Furthermore, Chimertech’s development of an AI/ML-powered smart milking machine, which monitors 24 parameters (including subclinical mastitis), highlights their commitment to creating adaptable, long-term solutions that benefit farmers globally.”
Summary
The second parameter of the Forge Innovation Rubric (FIR) — Novelty and Originality — is crucial for innovators, as it differentiates a company’s solutions by delivering unique value to customers and providing a competitive edge. A novel and original solution should be distinctive and disruptive, offering differentiation in the market. It should also be holistic, capable of operating independently without reliance on other systems, and have the potential to become an enduring solution by addressing broad, systemic challenges rather than serving as a limited point solution.
