Realization is a critical phase in the innovation process where we commercialize and bring new ideas to market. Senior leaders expect innovation to strongly support the organization’s future growth ambitions and they want to make informed decisions about which ideas to commercialize. In the case of breakthrough and more radical innovations, there is insufficient data and too much uncertainty to base decisions on.
At this stage, many organizations struggle and find that ideas and business models that do not fit their current operational model are quickly dismissed as high risk, the result being, only incremental innovation makes it into the marketplace.
How we can help
We help clients break this habit by leading them through a process of “agile commercialization.” This is a much more flexible, iterative way of commercialization than the traditional linear go/no go process. Agile commercialization allows us to do three important things:
1. Test the assumptions. In the process of designing our business model we will have made many assumptions. And the less we are familiar with a business model the more assumptions we will have made. These assumptions are about whether the customers wants it, if we can provide it and whether we can make a profit.
2. Rapidly adapt the business model. As we test our assumptions through experimentation we learn about our business model. We use that learning to adapt the design of our business model. At this stage we are focused on learning faster than without committing large amounts of resources.
3. Create the foundation. Develop the infrastructure, the capabilities and the market presence to actually implement when we do actually go live.
- Clearly defined and business models that can be pitched for investment decisions
- Sets of assumptions that should be tested prior to commercialization for de-risking purposes
- A systemic approach and common language around the design of business models