“My team comes up with terrific product enhancements all the time, but can’t get to the Big Ideas we need – why not?”  On its face, this is a reasonable question.

Our teams know their markets, have the best handle on shifting needs and were hired to develop innovative responses to meet those needs.  Yet, while our brainstorming sessions yield good incremental projects, they are seldom the game-changing “Big Ideas” that could bring in $10, $25 or even $50 million.  Why is getting to the Next Big Thing so difficult?

This article was first published on Wheels-Up Innovation

What Do You Mean, “Big Idea?”

CEOs often bring me in to help teams identify the next Big Idea.  What I’ve learned is, unless we clarify at the outset, my idea of a Big Idea, and the CEO’s idea of a Big Idea, may be completely different.  Frequently, the ideas our teams bring to the table are unaligned with our strategy or even too big – not too small.  They build proposals, business plans and enthusiasm around these ideas, which for legitimate but unknown-to-them reasons won’t be seriously considered. We get frustrated with lack of progress and the teams feel defeated.  In order to get the Big Ideas we want, we need to implement three steps:

Step #1: Focus Your Ideation Process

Generally, we’re looking for the Right Idea, not the Big Idea.  Before we can begin an effective search for the elusive Idea – Big, Right or whatever – we must provide our teams with strategic focus to guide their brainstorming.  Specifically, make sure they understand company direction and appetite around:

• Market.  Am I looking for new ideas for our existing customers, looking to drive new business with companies similar to existing customers, or enter entirely new markets?
• Timeline. When do I expect this product to deliver revenue? Profit? Breakeven?
• Revenue. How much revenue is “Big” to us?
• Non-Revenue Benefits.  Do I want to position our company as an industry leader?  Leapfrog existing competition?  Or create an entirely new ecosystem?
• Funding.  You shouldn’t spend a lot on testing, but most Big Ideas require some – probably significant – expense to scale them once proven.  We need to let our teams know the boundaries for funding.  If we can’t spend a million dollars to scale a new product line, we should say so upfront.

But Doesn’t This Kill Real Innovation?  I Want to See All Ideas!
Don’t all of these specifications build fences around game-changing creativity?  Generally, no. The right amount of focus enables effective innovation, versus an “anything goes/nothing gets done” atmosphere that results in wasted time, frustration and lowered morale.  After a few unguided efforts that go nowhere, even the most innovative teams will stop trying. Better to reward focused creativity with action and a real shot in the market.

Step #2: Form Hypotheses 

Once the team is aware of what Big Ideas look like to the company, they can begin generating some. To do this, brainstorm hypotheses about core capabilities (NOT products), markets and/or industry that reflect how you expect them to evolve over 3-5 years. What’s changing that may result in an opportunity or threat?  Then, generate ideas to address each hypothesis.

Some examples of hypotheses from my own Information Services and SaaS product background include:

• “The data we deliver as for-fee products will be increasingly available free of charge.”
• “Ownership of personal data will shift to the hands of the consumer or business that generated it, versus that which recorded it.”
• “Businesses are beginning to expect a high level of customization in even inexpensive decision-support tools.”

Our teams can apply their new understanding of Big Ideas to the Hypotheses they generate to deliver Ideas both Big and Right.

Step #3: Respond and Record 

Do the same ideas come up again and again, with no new information to make them more appealing?  How about the colleague who can’t let go of an idea, but nobody can provide reasoning that justifies pressing him to?  Has one team member shut down another with the ubiquitous “we thought of that ages ago” only to see the competition bring that very concept successfully to market?

By providing specific feedback and keeping track of resolution, everyone knows, even months after discussion, why an idea did not make it to “prime time.”  Even better, Old Ideas may become Big Ideas later, when something in the market changes.

So – what’s the Big Idea?  That’s up to you.  But the three steps above should enable you to get the best possible results from your innovation efforts.

What are your thoughts?

Diane Pierson, our INSIDER Guide to New Product Development, is a leader in product management and marketing to companies including Dun & Bradstreet, LexisNexis, American Lawyer Media and Copyright Clearance Center. She has built products & services that have delivered over $100 million in revenue and knows what works, and what doesn’t, when executing product plans and strategies. (Read Diane’s full Bio)