Ideas don't require resources, and everybody has ideas. What makes an idea valuable is the method or execution of that idea by a team. The key is finding a niche of early adopter segment to work with on a product or service's co-creation. This ensures strong product market fit.
The challenge with corporates is they tend to over invest in the investigation phase of an idea. They spending months researching, modelling and deciding, before floating the idea with the market.
When working with my clients, I suggest a slightly different approach. Instead of paying McKinsey $1million to help build a case on a single idea, I recommend to my clients to split that same $1 million, and test 20 ideas for $50,000 each. Yes. That means 80% of the 20 will fail. But you will have learnt 20 times more about the market.
Rapid experimentation allows for accelerated market development, and a broader approach to innovative options.
The power of rapid experimentation
There is a process called “Rapid Iterative Experimentation Process.” This “Lean Startup-Style” approach “features a series of activities to generate the insights and information needed by the investors in innovation (for example, the CEO and Business Unit Heads) to make better decisions about whether to ‘pivot, halt, or persevere.”
Rapid experimentation involves prototyping, concept simulation, and testing “to assess and improve the potential of the proposed innovations.” Prototyping involves the process of exploring and expressing different possible solutions to a design problem. Concept simulation is when you set up an environment the same as the market outside to test your ideas. Testing is when you actually go out to the market to test these innovative ideas.
As I’ve shared earlier, rapid experimentation involves planning your tests and testing your plans. This means you test as many as possible innovative ideas you have and pick out which one works out the best. A lot of companies are slow on following this trend as they stick to traditional ways of testing out one concentrated idea. But in a very dynamic, more globalized market, you have to keep up and be rapid.