Tag Archives: FORTH innovation method

How to reduce the failure rate of innovation

‘The innovation journey’ – written by Andrew van de Ven and his team[1] – is offering a vivid description of the innovation experience of 14 North American companies. The book offers snapshots of brilliant ideas, whimsical processes, failure and success. After having read the book you will understand why 50% of all investments in R&D had to be amortized.

Against this background, it is not surprising that scientists and business people have been thinking for decades how to improve the efficacy of the innovation process. The most famous example is Cooper’s stage-gate model. The underlying assumption of this model is that the success of the development of new products and services depends from moving along consecutive stages with Go / No-go decisions in between.

Stage-gate model

You will ask, “Does it work?

The question that has to be answered is which kind of ‘guidance’ will facilitate innovation processes best? Most authors feel that the initial stage of the innovation process – named ‘fuzzy front end’ or ‘ideation’ – offers best chances for improvement.

Last year, I did a research project in order to unveil whether careful planning of this stage will increase the success rate of innovation. I visited ten companies where I spoke with managers and leaders of innovation teams. Each of these companies deployed the FORTH innovation method (developed by Gijs van Wulfen) in the period 2007 – 2013. I wanted to discover critical success factors during the initial stage and the impact of the initiation stage at next stages as well.

Download the research report HERE

The FORTH innovation method is modelled like an expedition[2]. The innovation team moves along five stages: Full Steam ahead, Observe and learn, Raise ideas, Test ideas and Homecoming.

FORTH methof

The first step – Full steam ahead – includes a precise definition of the assignment. Here the management takes the lead. A good assignment defines the direction of the expedition, and the conditions that have to be met. Besides, the team is selected based on criterions like diversity, innovation-mindedness and team spirit. Premature generation of ideas is a frequent mistake in this step, resulting in the failure to make an adequate selection.

Therefore, during the second step – Observe and learn – participants visit customers or clients at home in order to discover preferences regarding new products or failures connected with existing products. For most participants this is the first contact ever with customers or clients and the experience is valued highly. In addition, the participants are enabled to deepen their knowledge of new technological developments, mostly related to ICT. By taking this step, participants are developing a feeling for customer frictions and innovation opportunities.

With this baggage, participants are ready for the third step, raising ideas. New ideas are produced by hundreds and afterwards channelled into 12 concepts. These concepts are carefully scrutinized, taking into consideration the conditions that were formulated at the beginning.

Now a next step – Reflection – can start. A second confrontation with customers or clients is organized in order to check the assumptions regarding the usefulness and market-potential of the concepts. In the end 3 – 5 concept survive, often after thorough revision.

The last step – Homecoming – includes further elaboration of the concepts into mini new business cases, possibly with the help of internal or external experts.

All companies that participated in the research expressed their enthusiasm about the FORTH innovation method. They were convinced that no ‘mini new business cases’ would have come into being without the systematic and motivating character of the method. Besides, participation at the FORTH innovation trajectory has created an innovative mind-set and a corresponding innovation culture. Employees are eagerly waiting for the next innovation expedition to start.

Critical remarks have been made too. Some members of the innovation team went too fast through the process of discovering customer frictions and customer needs. In some cases the satisfaction with the results of the ideation stage resulted in a rash decision to enter the market without additional research.

Gijs van Wulfen’s ‘Innovation expedition’ is based on thorough knowledge of potential failures that are described in Andrew van de Ven’s ‘Innovation journey’. Therefore, both books are sides of the same medal.

At Thursday January 15th 2015 4.00 PM Herman van den Bosch and Gijs van Wulfen will discuss the results of the research project mentioned-above. You are kindly invited to participate and to listen to the discussion and to ask questions (by chat) if you want.

Go to: http://portal.ou.nl/en/web/masterclass-mw-150914 for signing in and to register.

If you have arrived at the right page, press SIGN IN before registering and move along the prescribed steps. It will take you a couple of minutes.

[1] Van de Ven, A., Polley, D., Garud, R., Venkataraman, S (2008): The innovation journey, Oxford University Press, New York.

[2] Van Wulfen, Gijs (2013): The innovation expedition. A visual toolkit to start innovation. Bis Publishers, Amsterdam

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