strategy

Idea Generation

Idea Generation Jonathan Poland

Idea generation is the process of generating new and original ideas. It is an essential component of the innovation process and can be applied to a wide range of fields and contexts, including business, design, art, and science.

There are many different techniques and approaches for generating ideas, including:

  1. Brainstorming: This is a group activity in which participants are encouraged to freely generate as many ideas as possible without judgment or evaluation. The goal is to generate a large number of ideas, even if they are not all feasible or practical.
  2. Mind mapping: This involves creating a visual representation of an idea or problem, with branches radiating out from a central idea to capture related ideas and associations.
  3. SCAMPER: This is a problem-solving technique that involves applying seven different prompts to an existing idea or problem in order to generate new ideas: Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, and Reverse.
  4. Reverse brainstorming: This is a variation of brainstorming in which participants are asked to generate ideas for how to prevent or solve a problem, rather than coming up with ideas to achieve a goal.
  5. Design thinking: This is a process for generating and developing creative ideas that involves empathy, prototyping, and testing.

Idea generation is an iterative process that requires creativity, open-mindedness, and the ability to think outside the box. It is an important step in the innovation process, as it provides the foundation for further development and refinement of ideas.

Design Innovation

Design Innovation Jonathan Poland

Design innovation refers to the development of designs that represent a significant advancement. This can encompass innovation in fields that are traditionally associated with design, such as visual design, as well as the application of design principles and design thinking to innovate in areas such as architecture, engineering, and software development. Design innovation involves the creation of new and original designs that push the boundaries of what is currently possible and have the potential to make a significant impact. The following are common types of design innovation.

Structure

Structures such as architecture of a building. For example, a building that is a leap forward in terms of earthquake resilient design.

Environments

Environments both physical and virtual such as a game environment that invents a new law of physics in a virtual world.

Experience

Designs that change user experience in some meaningful way. For example, a new way to navigate complex information structures.

Usability

Making things more usable. For example, a holographic user interface that is easier to use than a tradition screen-based user interface.

Productivity

Designs that allow people to be more productive. For example, a search engine that displays the highest rated items that are a reasonable price such that customers often find exactly what they want on the first page of results.

Engagement

Making experiences more interesting and stimulating for users such as gamification of business software that makes work more enjoyable and creative.

Accessibility

Making things more useful for as many people as possible. For example, a design for a living street that improves things for people with disabilities, children, seniors, people carrying large items, bicyclists and emergency services.

Safety

Designs that are safer than the current state of the art such as an innovative design for a child safety seat.

Quality

Making things more fit for purpose such as a design for a kite that is easier to launch and control.

Reliability

Reliability such as an aircraft engine that is better at handling bird strikes without being damaged.

Performance

Performance such as a high speed train that can be safely operated at a higher speed than competing models.

Efficiency

Getting more output for each unit of input. For example, a passive technique for transporting sunlight to the center of a building that reduces the use of electric lighting.

Sustainability

Designs that reduce environmental damage or improve quality of life. For example, a plastic bottle that quickly biodegrades into harmless elements. Product designs are commonly produced in millions of units. As such, product designers are in a unique position to save the world.

Capacity

The ability to hold more such as an innovative rechargeable battery that stores more energy that any other comparable technology.

Aesthetics

A revolution in the way that things look and feel.

Differentiation

Designs that differentiate products in some extremely valuable way. For example, innovative use of shape, form and materials that generates demand and publicity for a product.

Durability

Designs that are more difficult to break. For example, a valve for a soccer ball that doesn’t allow the ball to be overinflated.

Complexity Hiding

Making interfaces simpler without making the product simpler. For example, an aircraft that has extremely complex safety systems that are relatively simple for pilots to use.

Integration

Things that are better integrated with other things. For example, a child car seat that is easy to anchor in any model of vehicle.

Modularity

Things that can be deconstructed and customized with modules such as a mobile device that is infinitely upgradable with hardware components that click into each other. For example, the ability to add nearly infinite memory units to the device as you need them.

Thought Process

Thought Process Jonathan Poland

Thought is the mental process of perceiving, organizing, and interpreting information. It is the foundation of all higher cognitive functions, such as problem-solving, decision-making, and creativity. There are several different types of thought, including:

Abductive Reasoning

Formulating theories to explain what you observe.

Abstraction

Modeling ideas with concepts that differ from concrete reality.

Analogical Reasoning

Using an analogy to develop understanding and meaning.

Analytic Reasoning

Reasoning based on facts that require no interpretation based on experience.

Backward Induction

Reasoning backwards starting with potential conclusions.

Cognitive Biases

Patterns of thought that lead to suboptimal results such as poor decisions.

Cold Logic

Logic that fails to consider human factors.

Conceptual Thinking

The identification of patterns and abstractions in information.

Conjecture

The ability to guess at theories when information is missing.

Contemplation

Deep reflective thought that involves absolute focus on an idea for an extended period of time.

Convergent Thinking

The process of finding the “correct answer” by following predetermined steps.

Counterfactual Thinking

Thinking about the impossible. For example, thinking about past choices not taken that are now impossible.

Creativity

Creating new and unique thoughts and products of thought.

Critical Thinking

Disciplined, systematic thinking that arrives at an opinion, judgment or critique.

Divergent Thinking

The ability to solve problems by considering a large number of solutions in a creative and exploratory way. Often contrasted with convergent thinking.

Emotional Intelligence

The ability to recognize and read emotions in yourself and others and use emotions in a directed way.

Flow

Flow is a state of focus in which a person is absorbed by tasks. Considered important to productivity.

Generalization

The ability to find general theories that explain observations.

Group Cognition

Social thought processes such as conversation, debate and peer review to build and challenge ideas.

Heuristics

Heuristics are practical approximations that aren’t guaranteed to be optimal. They can be calculated quickly and are often used to make decisions or react to fast moving situations.

Imagination

The ability to think about things beyond your direct experience or beyond present realities. Allows simulations of ideas to support creativity, decision making, problem solving and prediction.

Inductive Reasoning

A process of formulating theories to explain observations that allows for guesses.

Inference

Inferring new facts from what you know.

Instinct

An innate tendency towards a complex behavior. For example, it has been suggested that people tend to be instinctively curious and social.

Internal Monologue

Thinking in words.

Introspection

The process of examining your own thoughts, emotions and thought processes.

Intuition

The ability to acquire knowledge and make judgments almost instantaneously without conscious thought. Carl Jung defined it as “perception via the unconscious.”

Judgement

Judgement is the process of evaluating information to guide actions and decisions.

Logic

Logic is the discipline of valid reasoning. It is essentially a formal approach to rational thought. However, logic has limitations that don’t apply to rational thought. For example, some systems of logic can only consider true or false with nothing in between.

Metacognition

Thinking about thinking.

Minds Eye

Visualizing with your mind including both realistic visualizations from memory or imagination and visual abstractions.

Motivated Reasoning

Using logic to support a choice that’s primarily driven by motivations such as desires and fears.

Prediction

Conjecture about future events typically supported by experience and information such as trends.

Rational Thought

A state of being reasonable. Often associated with logic. However, rational thought may use natural language, visual abstractions, heuristics and partial truths that go beyond the capabilities of formal logic.

Reasoning

A broad term that includes most types of thinking but excludes emotional thought processes and intuition.

Situational Awareness

Thought processes that deal with fast moving situations such as riding a bicycle. Related to perception, comprehension, judgment, intuition and heuristics.

Social Cognition

The ability to successfully read and navigate social situations.

Speculative Reason

Reason that is theoretical as opposed to practical in nature. Speculative reason includes things such as contemplating philosophy.

Thought Experiment

Testing ideas in your head or on paper without need of acquiring real world data. Often involves either a proof from first principles or use of an analogy.

Innovation Process

Innovation Process Jonathan Poland

Innovation refers to the process of making significant improvements by taking bold steps forward, rather than making incremental progress. This can be applied to various aspects of a business, such as its model, products, services, customer experiences, processes, systems, and practices. The innovation process involves generating a large number of creative and experimental ideas, with the understanding that most of them will not succeed. The most promising ideas are then pursued through a process of design, development, marketing, and launch, with a focus on bringing them to market quickly in order to gather the necessary feedback for rapid improvement. The following are common steps in the innovation process.

Idea Stage

Generating ideas, building them out and filtering them down to your best ideas. Results in a business plan or business case.

Market Research

Cultivating knowledge of customer needs, perceptions, competition, technology and industry trends.

Creativity of Constraints

Early stage constraints designed to direct your efforts. Well designed constraints may stimulate creativity.

Preserving Ambiguity

Avoiding assumptions that aren’t in your constraints. For example, if you’re developing a bicycle, don’t assume it has two wheels.

Idea Generation

Generating as many ideas as possible. Include everyone in your organization.

Creative Processes

Techniques for generating creative ideas such as brainstorming, divergent thinking, thought experiments and counterfactual thinking.

Lead Users

Customers who are pushing your products to their limits are a common source of innovative ideas. They often have pain points that identify fundamental flaws in the way that things are done.

Market Fit

Estimate the value of ideas in terms of market fit including factors such as customer needs and competition.

Risk Management

Identify the risks that surround your ideas. Risks are fully managed though each stage of the innovation process. Risk management is a potent tool for innovation as it is the firms that are taking the biggest risks that benefit most from risk treatment.

Idea Screening

Eliminate or backlog as many ideas as possible such that you are left with your best ideas. Associated techniques include reverse brainstorming, defensive pessimism and prioritization.

Business Case

Begin the process of documenting your best ideas as a business case or business plan.

Testing & Planning

Brave ideas need a significant amount of verification because they are often flawed. Innovation processes are based on lightweight experimentation that explores ideas to find those that are most valuable to your goals.

Concept Testing

Testing high level ideas. For example, a paper prototype for architecture that explores a concept for the form of a building.

Test Marketing

Getting something in front of customers as early as possible to collect qualitative data. For example, a poster for a product idea.

Business Experiments

Designing experiments that will generate data with techniques such as A/B testing. For example, simulate a manufacturing process to benchmark its estimated performance.

Feasibility Study

Research and experiments designed to validate that aspects of an idea are feasible in terms such as cost, time, technology, resources and regulations.

Prototypes

Build partial implementations to support testing and planning.

Problem Solving

The process of resolving problems identified in testing to build ideas out.

Fail Often

One of the key differences between innovation and regular development projects is that innovation expects a large percentage of early stage ideas to fail. Innovation avoids forcing ideas that show little promise. An innovation process might see more than 99% of ideas fail at an early stage.

Goals & Objectives

Developing goals and objectives for ideas that survive testing.

Strategy

Developing strategies to achieve goals and objectives.

Planning

Planning the implementation of strategy. This involves completing a business case, documenting requirements and project management processes.

Design & Development

Innovation is often based on the design prowess of a team. A creative director who has launched dozens of unusually valuable products may drive innovation for a firm. In terms of development, innovation is usually about prioritizing work to develop and operationalize small chunks of functionality on a weekly or monthly basis.

Creative Direction

It is common for innovation to fall under a creative director for design and implementation. Generally speaking, innovation requires creative talent and can’t be easily systematized.

Parallel Design

Creating multiple designs for the same thing in a competitive fashion.

Iterative Design

Designing things, using them and designing them again.

Transition Design

Innovation is often a bold vision that can’t be implemented all at once. Transition design is used to identify meaningful and achievable steps that pull off large changes that would be impossible all at once.

Charrette

An intensive group process of delivering design work.

Backlog

A backlog of requirements to be implemented in future. It is common for a backlog to grow large with no expectation that all the work will ever be completed. The backlog is allowed to grow at any time and is prioritized with each design and development cycle.

Sprints

A short development cycle that creates working items that can potentially be operationalized.

Minimum Viable Product

The minimum set of functions and features that allow you to get the product in front of customers.

Quality Assurance

The end-to-end process of achieving the target level of quality in products and services. This includes processes such as testing and quality control.

Ship Often

Getting things out so that they can be rapidly improved.

Marketing & Launch

The process of generating demand and launching products and services.

Target Market

Identifying your customers. If an innovation is disruptive in the sense that it requires customers to change their ways, it will be hard to sell. In this case, a target market will typically be early adopters such as enthusiasts of your product category.

Branding

The process of developing brand identity and brand awareness.

Promotion

Demand generation using communication processes such as public relations, advertising, events, relationship marketing and strategies to spark word of mouth.

Distribution

Methods of selling and delivering a product or service.

Pricing

Pricing models and strategy.

Market Penetration

The process of gaining market share for a new business, brand, product or service. For example, promotional pricing and free trials. In some cases, market penetration requires skilled personal selling.

Pilot

Launching an innovation on a limited basis to manage risk, gain experience and collect data.

Moment of Truth

A customer interaction that is predictive of the success of a product or service. For example, audience reactions to the screening of a film.

Feedback Loop

Establishing ways to collect data from customers. For example, a firm that knows the top five customer pain points with a new product within a week of launch.

Launch

The full commercial launch of an innovation.

Operations & Management

The day-to-day process of managing innovative products, services, experiences, processes and environments.

Sales

Reaching your target market to sell a product or service. Includes managing customer relationships and related processes such as voice of the customer.

Operations

The process of delivering a product, service, process or experience.

Innovation Metrics

Business metrics that are relevant to innovation such as time to volume.

Innovation Management

A fully scaled innovation process may have all of the steps above running in parallel at all times. Innovation management is the practice of directing and controlling the innovation process.

Product Management

The regular process of managing a product such as monitoring competitive threats, pricing and positioning.

Quality Goals

Quality Goals Jonathan Poland

Quality goals are specific targets that are set to improve the quality of a product, service, or process. They are often developed as part of a broader quality assurance strategy or as part of a performance management system. Quality goals are designed to help organizations identify areas where they need to improve and to establish clear targets for improvement. By setting specific, measurable, attainable, relevant, and time-bound (SMART) quality goals, organizations can more effectively track progress and ensure that they are making progress towards their desired quality outcomes. The following are examples of quality goals.

  • Defects: Reducing the number of defects discovered by quality control.
  • Quality Control: Improving the quality control process itself.
  • Measurement: Measuring new quality metrics.
  • Benchmarking: Comparing your product or service quality to your competitors and industry.
  • Reporting: Capturing valuable measurements and communicating them.
  • Durability: Increasing the durability of products with new designs, materials and methods.
  • Service Quality: The quality of services is typically measured with intangible elements such as wait time.
  • Customer Ratings: Improving ratings on external sites such as a hotel that is concerned with improving review scores on a popular travel site.
  • Customer Experience: Internal measures of the customer experience such as turnaround time for requests.
  • Customer Satisfaction: Customer satisfaction is a common way to measure quality for both products and services.
  • Availability: The availability of services, particular digital services.
  • Data Quality: Addressing data quality issues such as the accuracy, completeness or timeliness of data.
  • Process Quality: The quality of process outputs such as a billing process that produces monthly customer invoices.
  • Supply: The quality of supplied components, parts and materials.
  • Traceability: Improving the tracking of things so that quality problems can be investigated, isolated and managed.
  • Consistency: Making products and services predictable, stable and consistent.
  • Standards: The implementation of external or internal quality standards.
  • Human Error: Reducing human error with improved policy, procedure, processes, systems and training.
  • Information Security: In many cases, a quality assurance team acts as oversight for information security issues, particularly security issues related to compliance.
  • Safety: Reducing health and safety risks.
  • Compliance: Compliance to laws, regulations, standards and internal policies such as best practices.
  • Monitoring: Implementing controls to monitor processes, procedures and other elements that impact quality.
  • Logistics: Improving inbound and outbound logistics where this impacts quality. For example, a firm that views late deliveries as damaging to the customer experience.
  • Training: Training designed to reduce incidents or improve service or product quality.
  • Incident Management: The process of responding to customer impacting issues.
  • Problem Management: The process of investigating and fixing the root cause of incidents.

Incident Management

Incident Management Jonathan Poland

Incident management is a process that involves the organization and coordination of efforts to address and resolve information technology incidents. An incident is any type of failure or disruption that has a business impact or poses a risk. The goal of incident management is to quickly restore service by implementing short-term fixes or workarounds. Long-term solutions to prevent similar incidents from occurring in the future are typically addressed through a separate process called problem management. The main focus of incident management is on providing timely and effective resolution to incidents, while problem management aims to identify and address the underlying root causes of incidents.

The following are common incident management techniques and considerations.

  • Call Tree
  • Corrective Action Plan
  • Downtime
  • Escalation
  • Incident
  • Incident Management Software
  • Mean Time Between Failures
  • Mean Time To Recovery
  • Mean Time To Repair
  • Problem Management
  • Root Cause
  • Self Service
  • Service Desk
  • Service Level Agreements
  • Service Support
  • Support Levels
  • Trouble Ticket
  • Troubleshooting

Business Capability

Business Capability Jonathan Poland

A business capability is a broad term that refers to the things that a business is able to do or achieve. It describes the capabilities of the business as a whole, without regard to the specific processes or strategies that are used to achieve those capabilities. Business capabilities can be described at various levels of detail, such as at the organizational, departmental, or team level. They provide a high-level view of a business’s abilities and capabilities, and are often used to inform strategic planning and decision-making. The following are illustrative examples of business capabilities.

Manage Risk
A bank manages risk.

Manage Credit Risk
A bank’s global credit department manages credit risk.

Analyze Client Credit Ratings
An analyst team in a bank’s global credit department analyzes client credit ratings.

Sales Pipeline Management
The sales department of a telecom company manages a sales pipeline.

Qualify Sales Leads
A sales operation team qualifies sales leads before they enter a sales pipeline.

Information Security Management
An IT department provides information security management.

Security Risk Identification
A security team identifies information security risks as a part of an annual audit.

Pricing
A marketing department prices products and services.

Price Testing
A marketing operations team is able to test different price configurations to optimize revenue and margins.

Product Development
A marketing department develops and launches products.

Product Design
A design team designs products.

Customer Service
An airline provides customer service.

Meal Service
A flight crew provides meal services.

Lost Baggage Claims
An airline operations team processes lost baggage claims.

Types of Fail Safe

Types of Fail Safe Jonathan Poland

A fail-safe is a mechanism or system that is designed to prevent harm or damage in the event of a malfunction or failure. While a fail-safe may not be able to prevent a failure from occurring, it is designed to minimize the consequences of the failure and ensure that the system remains safe. This is achieved through the use of redundant systems, backup systems, or other measures that are put in place to protect against the potential consequences of failure. The following are examples.

Elevators

Elevators are typically designed with special brakes that are held back by the tension of the elevator’s cable. If the cable snaps the loss of tension causes the brakes to be applied.

Trains

Railway trains commonly have air brakes that get applied automatically with the failure of the main brake system.

Earthquakes

Elevators and trains in earthquake prone regions such as Japan are often configured to detect earthquakes and automatically stop. Elevators may be designed to stop at the nearest floor and open their doors. In some cases, such systems are hooked up to earthquake early warning systems and can potentially stop seconds before an earthquake arrives.

Flight Control

Flight control computers are typically designed with redundancy so that if one goes down another kicks in. They may also be designed to detect a flight control computer that suffers from “insanity” meaning that it appears to be dysfunctional due to damage or other factors.

Electronic Locks

Electronic locks that are designed to be unlocked by default in the event of power failure. Some vehicles don’t have this feature and it’s possible to get locked in a car that loses power.

Traffic Lights

Traffic lights may be designed to blink red in all directions if their controller goes down.

Deadstick Landing

Aircraft are designed with some ability to glide and can be landed without any engine power. This isn’t completely safe but is certainly possible with a competent pilot if there is a suitable landing spot within range.

Submarines

Some submarines are designed to automatically drop their ballast in the event of power failure causing the submarine to surface.

Shut Off

Many machines are designed to shut off if they detect something is wrong.

Fail Over

Computer services are commonly designed with redundant servers. When one server fails, another replaces it almost instantaneously. This allows many services to maintain an uptime of 99.999% or greater.

Gap Analysis

Gap Analysis Jonathan Poland

A gap analysis is a method used to determine the distance between an organization’s current state and its desired future state. This involves comparing the organization’s current strategy, structure, capabilities, processes, technologies, practices, and services with a target state that is based on the organization’s goals and objectives. The goal of gap analysis is to identify areas where the organization is falling short of its goals and to develop a plan to close the gap between the current and desired states.

There are several steps involved in conducting a gap analysis:

  1. Identify the organization’s current state: This involves collecting data on the organization’s current operations, processes, and performance. This can be done through a variety of methods, such as interviews, surveys, and data analysis.
  2. Identify the organization’s desired future state: This involves determining the goals and objectives of the organization, and what it hopes to achieve in the future. This can be done through strategic planning sessions or other forms of stakeholder consultation.
  3. Identify the gap between the current and desired states: Once the current and desired states have been identified, it is necessary to determine the gap between the two. This involves comparing the two states and identifying the areas where the organization is falling short of its goals.
  4. Determine the causes of the gap: In order to close the gap, it is necessary to understand the root causes of the gap. This may involve identifying internal or external factors that are contributing to the gap.
  5. Develop a plan to close the gap: Once the causes of the gap have been identified, a plan can be developed to address these issues and move the organization closer to its desired future state. This may involve making changes to processes, implementing new technologies, or developing new skills and capabilities.
  6. Implement the plan and track progress: Once the plan has been developed, it is important to implement it and track progress towards closing the gap. This may involve setting benchmarks and regularly reviewing progress to ensure that the organization is on track to achieve its goals.

Capitalist Realism Jonathan Poland

Capitalist Realism

Capitalist realism is the theory that capitalism is the only economic system that is realistically possible or viable. This term…

Knowledge Value Jonathan Poland

Knowledge Value

Knowledge value is the value that is derived from knowledge, skills, and information. It can be a measure of the…

Thought Process Jonathan Poland

Thought Process

Thought is the mental process of perceiving, organizing, and interpreting information. It is the foundation of all higher cognitive functions,…

Algorithmic Pricing Jonathan Poland

Algorithmic Pricing

Algorithmic pricing involves using automation to set prices dynamically based on a variety of factors, such as customer behavior, market…

Brand Values Jonathan Poland

Brand Values

Brand values are the principles and beliefs that a brand stands for and that guide its actions. They reflect the…

Cost Benefit Analysis Jonathan Poland

Cost Benefit Analysis

Cost-benefit analysis (CBA) is a systematic approach to evaluating the costs and benefits of a project, program, or policy to…

Product 101 Jonathan Poland

Product 101

A product is an item that is offered for sale. It can be a tangible good, such as a car…

Big Picture Thinking Jonathan Poland

Big Picture Thinking

“The big picture” refers to the broadest possible perspective that can be taken in a thought process. Big picture thinking…

What are Tactics? Jonathan Poland

What are Tactics?

Tactics are short-term, immediate strategies that are designed to respond to fast-changing realities and situations. They are focused on taking…

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Strategic Planning Jonathan Poland

Strategic Planning

The strategic planning process is a systematic way for an organization to set its goals and develop the actions and…

Communication Strengths Jonathan Poland

Communication Strengths

Communication strengths are qualities or abilities that enable an individual to communicate effectively. These can include general communication skills, such…

Early Adopters Jonathan Poland

Early Adopters

Early adopters are individuals who quickly adopt an innovation. Marketing and selling innovative products can be challenging as it may…

Structural Capital Jonathan Poland

Structural Capital

Structural capital is one of the three primary components of intellectual capital, and consists of the supportive infrastructure, processes, and…

Innovation 101 Jonathan Poland

Innovation 101

Innovation is the process of creating new ideas, products, or processes that add value to a company. This can be…

Behavioral Targeting Jonathan Poland

Behavioral Targeting

Behavioral targeting is a form of online advertising that uses information about a user’s online activities to create targeted advertisements.…

Austrian Economics 101 Jonathan Poland

Austrian Economics 101

Austrian economics is a school of economic thought that originated in Austria in the late 19th century with Carl Menger,…

What is Jevons Effect? Jonathan Poland

What is Jevons Effect?

Jevons paradox, also known as the Jevons effect, is a phenomenon in which an increase in the efficiency of resource…

Risk Capacity Jonathan Poland

Risk Capacity

Risk capacity is the maximum level of risk that an organization or individual is able to withstand in order to…