Product Innovation Best Practices Series

Ideation for product innovation: What are the best methods?

Reference Paper # 29
By Dr. Robert Cooper and Dr. Scott Edgett

Compliments of: Stage-Gate Inc. and Product Development Institute Inc. This article was published by the PDMA Visions Magazine March 208 For information call +1-905-304-8797

www.stage-gate.com

Ideation for product innovation: What are the best methods?

By Dr. Robert Cooper and Dr. Scott Edgett

Surprisingly little research has been done evaluating the burgeoning number of techniques used in the front end, particularly the ideation portion, where ideas come into the funnel before they are weeded out and evaluated. The two authors, Dr. Robert Cooper and Dr. Scott Edgett, recently completed a study that sheds light on the comparative value of different ideation sources.

These pages contain copyright information of Product Development Institute and member company Stage-Gate Inc., including logos, tag lines, trademarks and the content of this article. Reproducing in whole or any part of this document is strictly forbidden without written permission from Product Development Inc. or Stage-Gate Inc.

Cover Story

Ideation for product innovation: What are the best methods?

Robert G. Cooper, President, Product Development Institute and Professor, McMaster University (robertcooper@cogeco.ca) and Scott J. Edgett, CEO, Product Development Institute (Edgett@prod-dev.com)
Robert Cooper Scott Edgett

Surprisingly little research has been done evaluating the burgeoning number of techniques used in the front end, particularly the ideation portion, where ideas come into the funnel before they are weeded out and evaluated. Our two authors, Bob Cooper and Scott Edgett, recently completed a study that sheds light on the comparative value of different ideation sources.

he aggressive revenue growth goals of most firms point to in Exhibit 2. Newer methods, such as ethnography, forming a the need for a deliberate, systemic, and managed approach to community of enthusiasts, or letting the customer help design the generating game-changing new product ideas. According to product, are less popular. Regardless of popularity, however, VOC a 2005 Arthur D. Little global study, of five best practices identimethods are rated highly by users in terms of effectiveness. They fied, idea management has the strongest impact on the increase constitute the top five rated methods of the 18. Indeed, most of the in sales by new products. In other words, having effective idea VOC methods fare very well, receiving solid effectiveness scores management results in an extra 7.2 percent of sales from new from usersall in the top half of the magic ideation quadrant products.1 diagram in Exhibit 2. The first place to begin crafting an effective ideation system is by identifying potential sources of ideas: Where do the good ideas A closer look at VOC methods come from? And more important, where should they be coming The following discussion takes a more detailed look at each from and which valuable sources are you missing? Favorite idea VOC method covered in the study. They are ranked below from sources may be evident in your company, but there is a lack of most effective to least effective. substantial research to reveal the 1. Ethnographic research: Ethmost effective idea sources. nography has become a popular Our study looked at 18 different topic in product innovation literature; Cooper-Edgett Ideation Study sources of new product ideas in busibut ironically it is not so popular ness.2 We sought to determine how among practitioners, as seen by The objective: to determine how extensively each extensively each method is used (its its unique location way up in the ideation method is usedthat is, the popularity of popularity), and to gauge manageupper left quadrant on the magic the methodas well as to gauge managements ments perception of the effectiveness ideation quadrant diagram (Exhibit perception of the effectiveness of the method of the method in generating excel2). This approach involves camping in generating excellent, high-value new product lent, high-value new product ideas. out with or observing of customers ideas. Over 160 companies took part in the study A total of 160 firms took part in the for extended periods, watching and conducted in 2007. study; the breakdown of firms is in probing as they use or misuse prodRobert Cooper and Scott Edgett Exhibit 1. ucts. The method sees limited use for Exhibit 2 reveals the popularity ideation, ranking #13 in popularity and effectiveness of each of the 18 with only 12.9 percent of firms exmethods in a magic ideation quadrant diagram.3 The popularity tensively using it. In spite of its lack of popularity, the method is measured by the percentage of firms that extensively use each gets top marks for effectiveness. Ethnography is ranked #1 of all methodshown across on the horizontal axis (usage was captured methods among users, with a strong effectiveness score of 6.8 out on a 010 scale; extensive users are those that checked the top of 10. (For comparison, the average effectiveness score for all 18 third of this 10-point usage scale). Rated effectiveness of each methods is 5.6, with a standard deviation of 0.73; so a score of method is shown as a 010 scale on the vertical axis in Exhibit 6.8 is, relatively speaking, strong.) 2, but only for users of that method. (The argument here is that The method provides perhaps the greatest insights and depth of non-users do not have enough experience with the method to rate knowledge into users unmet and unarticulated needs, applications, its effectiveness.) Ideation methods that are both popular and efand problems of all the ideation approaches we studied, according fective are in the desirable upper right quadrant. to users. But the cost and time of conducting such research essentially cultural anthropologyis considerable, while the skill set of the researchers must be high (not every marketer is a trained Voice-of-customer methods cultural anthropologist). Additionally, the method does not suit all Eight voice-of-customer (VOC) methods were investigated, product types and markets. For example, employing ethnography including ethnography, focus groups, and lead user analysis. Some at a construction site or in a factory or hospital is quite feasible, VOC methods are used extensively, notably customer visit teams, but camping out in someones kitchen or bathroom is a bit more focus groups to identify customer problems, and the lead user of a challenge. In spite of low usage and some of these limitations, approach, as noted by the diamonds in the upper right quadrant
12 MARCH 2008 PDMA Visions MAgAzine

or users (a group workshop) to identify problems and potential however, the method is definitely recommended! solutions. The method is positioned very close to #3, customer 2. Customer visit teams: With this approach, visit teams focus groups, in the magic ideation quadrant diagram; and it proves (cross-functional, typically three people) visit your customers or to be quite popular, with 24.0 percent of firms extensively using users; they use in-depth interviews based on a carefully-crafted the approach. The method is thought to be effective, too, ranked interview guide to uncover user problems, needs, and wants for #4 on average by users, with a positive effectiveness score of 6.4 new products. The method is ranked #4 in popularity with 30.6 out of 10. This method is definitely recommended. percent of firms extensively using this method. It is ranked #2 by The advantage of lead user analysis is that innovative customers, users for effectiveness (a strong 6.6 rating out of 10). The major who are ahead of the wave, are hence quite likely to have your next advantages users claim are the ability to identify and focus on new product idea; and this method is how you can uncover what customer problems and unspoken needs during these interview it is. And the method works: For example, some businesses at 3M sessions, a vital source of product ideas. The main challenges swear by the approach. Others are more neutral in their assessment. are getting customers to cooperate (to agree to the session and The major challenges are identifying who the innovative customers to provide honest answers), finding the time to do this valuable are, getting them to participate in an off-site workshop, and then study (in-depth interviews at multiple customer sites do take more structuring and running the workshop session properly. effort than most of the methods), training the interviewers, and 5. The customer or user designs: This novel method has redesigning a robust interview guide with the right questions. In ceived much attention in recent years, and it has been made posspite of the challenges, however, this VOC visit team method is sible in part because of new information technology (IT) tools.5 definitely recommended! 3. Customer focus groups for problem detection: In this VOC Here, customers or users are invited to help you design your next method, focus groups are run with your customers or users to new product. For example, an article by Stephan Thomke and von identify needs, wants, problems, points of pain, and new product Hippel reports that: suggestions. (Note that in product development, focus groups are most often used to test Bush Boake Allen (BBA), a global supplier of specialty flaconcepts, not to generate vors to companies like Nestle, has built a tool kit that enables ideas.) The focus group its customers to develop their own flavors, which BBA then There is a lack of moderator skillfully fomanufactures. In the materials field, GE provides customers substantial research to cuses the discussion on with Web-based tools for designing better plastic products. In problems or wants and software, a number of companies let users add custom-designed reveal the most effective helps users walk through modules to their standard products and then commercialize the idea sources. their problems. best of those components.6 The method is ranked #5 in popularity, with 25.5 percent of firms extensively using The method has not caught on widely, however, with an overall focus groups for problem identification and ideation. Its effectivepopularity ranking of #11 (only 17.4 percent of firms extensively ness is ranked #3 by users, with a positive effectiveness score of use the approach). In spite of its limited popularity, however, it 6.4 out of 10. The method shares the same strengths as the visit ranks #5 in terms of effectiveness, with a positive score of 6.0 out team approach above, namely the ability to identify problems of 10 and above the average rating for the 18 methods. The big and to drill down into these problems. Challenges include getplus of this method is that informed users are in the best position ting the right customers Exhibit 1: Breakdown of Firms in the Survey to agree to participate (a particular problem with business-to-business or B2B customers), finding the right moderator with focus group skills and product knowledge, and cost. This method is definitely recommended! 4. Lead user analysis: This VOC method, pioneered by Eric von Hippel, has been around since the 1980s, but has caught on only in the last decade.4 The theory is that if one works with innovative customers, then innovative product ideas are the result. The technique often entails assembling a group of particSOURCE: Cooper-Edgett Ideation Study ularly innovative customers
PDMA Visions MAgAzine MARCH 2008

4 13

to design your next breakthrough new product simply because they know their needs and what they want. But the method can only be applied to certain categories of products. For example, allowing users to design products where the science is beyond the knowledge of the user, as in pharmaceuticals, aerospace equipment, or telecommunications equipment, wont work. Additionally there is the challenge of employing effective tools (for example, the right Web-based toolkits) to allow users to create product designs. Nonetheless, in spite of only modest popularity, the customer designs method is definitely recommended. 6. Customer brainstorming: This VOC method is often employed at a customer event in the case of B2B markets, or in lieu of a focus group session for business-to-consumer (B2C) products. It entails gathering a group of users and then employing formal brainstorming sessions with them to come up with new product ideas. Often inverse brainstorming is used to begin the session in order to uncover product deficiencies and shortcomings. Then brainstorming follows to propose solutions to the identified deficiencies. Overall, this method is only moderately popular (with 17.4 percent of firms extensively using it, sharing the #11 spot in popularity with the customer designs). Effectiveness is above the average for all 18 methods; it is ranked #6 by users in terms of generating quality ideas. The inverse brainstorming approach followed by traditional brainstorming is a tried-and-proven methodology for ideation, and many users claim that great ideas are the result of such sessions. But there are costs and difficulties: organizing Somenewer methods, such the event can be timeconsuming; getting B2B as ethnography, forming a customers to participate community of enthusiasts, or is always a challenge; and letting the customer help design there are difficulties in setting up a group sesthe product, are less popular. sion when competitors are involved. The approach is recommended in spite of its limited popularity. 7. Customer advisory board or panel: This VOC approach has been around for decades. It entails using a customer advisory board or user group to advise on problems and new products needs. In spite of its durability, the method is only moderately popular, with 17.6 percent of firms extensively using it for ideation, #10 in popularity. Users rate the effectiveness of advisory boards for ideation above average#8 in the ranking. Few respondents had much good to say about advisory boards as a solid source of quality ideas, but part of the problem is the way the meetings are structured, as more of a discussion session than an ordered attempt to identify hot new product opportunities. Thus, customer advisory boards are fine to use for maintaining good customer relations, but are not at the top of the list for idea generation. 8. Community of enthusiasts: This is yet another VOC method, whereby your company forms a community of enthusiasts who discuss your product, often on the internet; in so doing, problems are identified and ideas for new products emerge. The method is not popular at all as a source of ideas, with only 8.0 percent of firms extensively using it (ranked #15 in popularity). Similarly, the method is rated the least effective of the eight VOC methods, at #9 in effectiveness; but it is still above average. The major advantage is that once set up, this community can be maintained fairly inexpensivelyfor example as an online community. By
14 MARCH 2008

Ideation Methods Covered Cooper-Edgett Ideation Study

Voice-of-Customer (VOC) Ethnographic research Customer visit teams Customer focus groups for problem detection Lead user analysis Customer or user designs Customer brainstorming Customer advisory board or panel Community of enthusiasts Open innovation Partners and vendors Soliciting the external scientific/technical community Scanning small business and business startups Invite external finished product designs External submission of ideas External idea contest Other Peripheral vision Disruptive technologies Patent mapping Idea capture internally

analyzing the comments and messages, one gains insights into whats really going on in the user community, their problems and desires. The challenge is that this method requires considerable skill, insight, and time to undertake content analysis. A second challenge is that the method likely only applies to a handful of product classes (for example, sports equipment or computer software) where customers are likely to band together into enthusiast groups or clubs. In spite of very low usage, we think the method should be considered for applicable product categories.

Open innovation approaches

Much has been written about open innovation in recent years, urging companies to look outside their organizations for new product ideas, intellectual property (IP), and even fully developed products.7 In spite of all the hype, however, these open innovation methods are neither very popular nor are they perceived to be particularly effective as sources of new product ideas, according to respondents in our study. Indeed, as a group, most are in the lower left quadrant of the magic ideation quadrant diagram (the solid boxes in Exhibit 2). Six different open innovation approaches to getting new product ideas were investigated in our study. Note that the most popular approachideas from partners and vendorshas been around for a long time; and while it is an open innovation method per se, it certainly is not a new method. The three most effective open innovation methods (as judged by usersExhibit 2) are ideas from partners and vendors, ideas from the external scientific community, and ideas from startup businesses. The reasons for the lack of popularity and the perceived ineffectiveness may be that some of the open innovation approaches are relatively new, and thus many companies have yet to experiment with them. And with their being so new, it is difficult or too early to evaluate their effectiveness. David Gann and Linus Dahlander
PDMA Visions MAgAzine

of Londons Imperial College dispute this, arguing that open innovation is not so new, that firms have always been open to some degree and that the benefits differ depending on their line of business.8 Those companies in industries with simpler technologies and B2C products (such as Procter & Gamble [P&G]) are good candidates for open innovation, with millions of consumers and would-be inventors the target; but companies in advancedtechnology and complex products may find inviting ideas from the outside world to be less fruitful. Although the most popular Yet another critique comes from capital-inof all methods...internal idea tensive industries, where capture systems typically yield products take a long time to develop and reless-than-spectacular results. main on sale for years. GEs CEO Jeff Immelt observes that his firm is a leader in a number of fields, such as making jet engines and locomotives, which requires doing things that almost nobody else in the world can do and where IP rights and a degree of secrecy still matter.9 Mark Little, head of GE research, is even more skeptical and notes that outside ideas dont really stick well here. He professes great satisfaction with the output of GEs own research laboratories: Were pretty happy with the hand weve got.

A closer look at open innovation methods

We now turn to a detailed look at each open innovation method covered in the study, addressing them as they rank from most effective to least effective. 1. Partners and vendors: This open innovation method entails

seeking new product ideas from outside partners and vendors. It is not a new approach, and it is quite popular: It ranked #7, with 22.1 percent of firms extensively using it. Effectiveness rankings slide a bit: The use of vendors and partners as a source of ideas is down the list at #11 out of 18 in effectiveness. The advantages of this method are that vendors and partners bring to the table technical capabilities that may be beyond your scope of expertise. Buried within these capabilities are the seeds of your next great new product. The trouble is that vendors or partners may be equally as uncreative at ideation as you are, hence you cannot expect a plethora of great ideas from this source. Nonetheless, because it is a tried-and-proven approach, is quite popular, and yields decent effectiveness ratings, we recommend the approach; it is also the only open innovation method even close to the desirable upper right quadrant in the magic ideation quadrant diagram in Exhibit 2. 2. Accessing the external technical community: This open innovation approach solicits ideas and technology solutions from the external scientific and technical community. A number of online tools, such as NineSigma, Yet2.com, and Innocentive, make this access much easier today. The method is fairly popular (ranked #9 overall) with 19.5 percent of firms extensively using it. Note, however, that the method tends to be used more for seeking technology solutions online than for seeking new product ideas. And effectiveness for ideation suffers when gauged by users ranked a low #14 with a poor effectiveness rating of only 4.9 out of 10. Thus this ideation method is fairly popular but yields poor to mediocre results. 3. Scanning small businesses and business startups: This open innovation approach accesses small and startup businesses to get ideas from these entrepreneurial firms. Although the method

Exhibit 2: The Magic Ideation Quadrant DiagramEffectiveness (Rated by Users) Versus Popularity for Each of 18 Ideation Methods

SOURCE: Cooper-Edgett Ideation Study

PDMA Visions MAgAzine

MARCH 2008

15

seems logical, its overall popularity is low, ranked #14 out of 18. Effectiveness when gauged by users is also ranked very low, at #15, with a poor effectiveness rating of 4.9 out of 10. The argument here is that you can bet that somewhere today there is a scientist or designer with the great next new product in your industry. The trouble is, he or she probably does not work for you, but is employed in a small or startup firm. Indeed, the track record of large and dominant firms in commercializing breakthrough innovations in most industries has been dismal, while the true innovations have come from newer or smaller firms. The challenge is that there are hundreds, perhaps thousands, of smaller enterprises that could be sources here; and accessing and vetting all the potential sources is no small task. The method is neither popular nor viewed as particularly effective, and it is dead center in the lower left (undesirable) quadrant of the magic ideation quadrant diagram. 4. External product designs: This open innovation method involves using the internet to invite your customers, users, and others Surprisingly, effectiveness from the external world of external submission of ideas to submit finished product ranks a poor #17 out of 18 when designs (not just ideas). The method is sometimes rated by users, almost dead called crowdsourcing. Examples are Threadless, a last. T-shirt company in Chicago that runs online contests for T-shirt designs; and Muji, a Japanese furniture company that asks its catalogue members to submit furniture designs.10 This is a very novel and step-out method, and not surprisingly achieves the lowest popularity, ranking dead last, with only 2.0 percent of firms extensively using it. Effectiveness is lower-ranked as well, at #16 out of 18 (with a poor effectiveness rating by users of only 4.8 out of 10). The advantage of the method is that the world becomes your product design house. You can capitalize on consumers desires to design and develop products, often for little or no financial gain. The example of open source software is often given by proponents of this method. Once again, however, this method has limited applicability. Its use is restricted largely to consumer products and relatively simple and creative goods (note that both examples given are creative design products for which consumers are likely to have creative insights). Crowdsourcing sounds like a neat method, but its not popular and results are weak It is not recommended generally, but may suit a few firms similar to those mentioned above. 5. External submission of ideas: In this open innovation approach, your customers, users, and others in the external world are invited to submit their new product ideas, often via the internet and your Web site. P&Gs Connect & Develop system is an example.11 Few companies have tried this approach, however. The popularity of this method ranks #16 out of 18, with only 7.9 percent of firms extensively using it. Surprisingly and in spite of the positive note spun in articles written about P&Gs system, effectiveness of external submission of ideas ranks a poor #17 out of 18 when rated by usersalmost dead lastwith a poor effectiveness rating of only 4.5 out of 10. On the positive side, users of this method indicate that the entire world, including knowledgeable consumers, become your source
16 MARCH 2008

of ideas, greatly magnifying the possibilities beyond your own employees creative abilities. A major weakness is that the technique probably only applies to the world of consumer and technicallysimple products. Further, it takes an army of internal people, as one executive commented, to review the ideas, assess and evaluate them, and get back to the submitter with a proposal. For example, one major European consumer goods company tried the approach for a while and then gave it up as far too time-consuminga lot of work for the very few good ideas we obtained. This method is not popular and receives a poor effectiveness rating; try it if you wish, but its not high on our list of to do actions. 6. External idea contest: Another open innovation method, it involves hosting an ideation contest and inviting the external world to submit ideas. It is not a popular method, ranked #17 out of 18, with only 4.1 percent of firms extensively using external idea contests. Its effectiveness is similarly low, ranked dead last at #18 out of 18 (and a very poor effectiveness score of 4.3 out of 10). This method is an extension of open method #5 aboveexternal submission of ideas and shares the same positives, except there is an added incentive (and a little excitement of a contest with prizes) for the consumer. But like #5, the method is limited to simple consumer goods. Additionally there is the added cost and time of setting up a professionally-managed contestall the rules, administration, and awarding of prizes. In summary, external idea contests are not popular at all. Nonetheless, they get good reviews from some heavy users, so its worth a look, but clearly is not the ideation method of choice for most firms.

Four other ideation methods

Among the 18 ideation methods we studied, there are four more that are consistently cited as useful idea sources. Two of the methods are very popular: patent mapping and internal idea capture systems; while two others are strategic or top down approaches, with one (exploiting disruptive technologies) cited frequently in the literature and the otherperipheral visionrated as quite popular and fairly effective. Popularity and effectiveness ratings, again, are shown in the magic ideation quadrant diagram in Exhibit 2, where these four methods are shown as triangles and appear toward the right side of the diagram. Again, the methods are discussed below in order of effectiveness ranking. 1. Peripheral vision: In this deliberate and formal strategic exercise, you assess the external world to identify trends and threats and, in the process, define potential new products. The approach is based on the tenet that most firms get blindsided by major external events and miss opportunities for new products because they lack peripheral vision.12 An example is Mattels failure to see the emerging trend that little girls grow up quickly, while a competitor introduced Bratz dollsmore grown-up and sophisticated dollsand stole the market. Peripheral vision is a very popular approach to generating new product ideas, and it is ranked #2 out of 18, with 33.1 percent of firms extensively using it. Effectiveness is also positively rated, with a #7 ranking from users. The challenge here is that while most firms we surveyed engage in such strategic exercises, often the effort is informal and unstructured; and while trends and events are identified, many firms simply fail to act on them. Given its popularity coupled with its positive effectiveness rating, we recommend employing peripheral vision as a strategic approach to ideation. 2. Disruptive technologies: Proponents of this approach arPDMA Visions MAgAzine

gue that disruptive technologiesradical and step-changes in a technologypose great threats to the incumbent firms, and provide great opportunities to those firms that see the disruptions coming.13 The approach here is to monitor technological trends formally; to identify potential disruptive or radical or step-change technologies; and, most important, to define the resulting new product ideas. The method is fairly popular (ranked #8 out of 18), with 21.6 percent of firms extensively using it. The effectiveness of monitoring disruptive technologies is somewhat disappointing as a source of ideas, however: it is ranked #10 out of 18 by users. In theory, the method makes a lot of sense. Disruptive technologies do generate major opportunities for those who see them coming and who have the courage to exploit them. The problem is that a true disruptive technology is not an everyday occurrence in ones industry, hence is not a prolific and ongoing source of ideas. Further, a major criticism leveled at current and past proponents of this approach14 is that analysis of disruptive technologies works best in hindsight. Its a good technique to explain what happened historically, but predicting disruptive technologies and their impact is much more difficult. Thus, in spite of all the hype on this method, it is not particularly popular and yields surprisingly mediocre results. We recommend it, but with some skepticism. 3. Patent mapping: This method involves mapping or mining others patents to see where the technical and competitive activity is and to identify the potential areas for new products. It is a popular approach (ranked #3), with 32.7 percent of firms extensively employing this method. While the technique is useful for identifying areas of competitive activity and hence potential areas of focus, it does not generate new product ideas per se. As a result, its effectiveness is ranked lower, at #12. We rate it as a useful tool. 4. Idea capture internally: Setting up an internal idea capture system is, not surprisingly, the most popular ideation method. This typically involves formally soliciting new product ideas from your own employees (often via a internal Web page), and then screening and handling these ideas via some form of structured process. Ranked #1 overall in popularity, this approach was shown by our study to be used extensively by 37.4 percent of firms. Its effectiveness is disappointing, however. Internal idea capture systems are ranked #12 in effectiveness (tied with patent mapping). While employees should be a major source of breakthrough ideas, the challenge is that most such systems to capture their ideas are poorly constructed and inadequately managed. For example, most employee-targeted ideation systems fail to specify the search fields, often the result of a lack of a clearly articulated innovation strategy for the firm. The result is no focus or direction to the idea submissions, resulting in a scattergun approach with many off-strategy ideas. Thus, although the most popular of all methods, internal idea capture systems typically yield less-than-spectacular results. We recommend the approach but with a proviso: An innovation strategy must be in place to define areas of focus (the search fields) and clearly communicated to employees.

are definitely recommended, especially ethnography. The other methods found in the lower half of the magic ideation quadrant diagram fare more poorly on average, but should not be ruled out. These include all six open innovation approaches, on which the jury may still be out. Also, average ratings can lie, as these methods, while not effective for everyone, do receive positive comments from a limited subset of users. So take a look at these lower-rated methods, particularly if the method might fit your special situation, market, or industry. Regardless of which approach you use, recognize that effective ideation is a vital part of a solid idea-to-launch systema critical best practice. So install an idea generation, capture, and management system, building in some of the effective idea sources you have read about here.
Robert G. Cooper is President of the Product Development Institute, a professor at McMaster University, Hamilton, Ontario, Canada, and creator of Stage-Gate. Scott J. Edgett is CEO of the Product Development Institute, Ancaster, Ontario, Canada.

Endnotes

How to use the magic ideation quadrant diagram

The magic ideation quadrant diagram in Exhibit 2 gives a good overview of the popularity and effectiveness of various ideation methods and sources. Those in the desirable upper right quadrantthree VOC methods and two strategic approaches are either highly recommended are or worth taking a very close look at. Three other VOC approaches in the upper left quadrant
PDMA Visions MAgAzine

1. Arthur D. Little, How Companies Use Innovation to Improve Profitability and Growth (Innovation Excellence study) (Boston: Arthur D. Little, 2005). 2. For more detail on these ideation methods, see: R.G. Cooper and S.J. Edgett, Generating Breakthrough New Product Ideas: Feeding the Innovation Funnel (Ancaster, Ontario, Canada: Product Development Institute Inc., 2007). See: www.stage-gate.com. 3. The term magic quadrant diagram was coined by the Gartner Group as a method of rating and displaying competing software solutions in a given space. We borrow the term here since we are doing much the samerating and displaying different ideation toolsand we acknowledge Gartners magic quadrant terminology. 4. Eric von Hippel, Get New Products from Customers, Harvard Business Review (March-April 1982): 11722. 5. Eric von Hippel, Democratizing Innovation (Cambridge, Mass.: MIT Press, 2005). 6. Stephan Thomke and Eric von Hippel, Customers As Innovators: A New Way to Create Value, Harvard Business Review (April 2002): 7481. 7. Henry Chesbrough, Open Innovation: The New Imperative for Creating and Profiting from Technology (Cambridge, Mass.: Harvard Business School Press, 2003); also: Henry Chesbrough, Open innovation Myths, Realities, and Opportunities, Visions, April 2006; also: Michael Docherty, Primer On Open Innovation : Principles and Practice, Visions, April 2006, Vol. XXX, No. 2 . 8. Parts of this section taken from: The Love-In: The Move Toward Open Innovation Is Beginning to Transform Entire Industries, The Economist online edition (Oct. 11, 2007). Available from www. economist.com/surveys/displaystory.cfm?story_id=9928227. 9. Ibid. 10. These examples are from: Paul Boutin, Crowdsourcing: Consumers as Creators, Business Week online edition (July 13, 2006). Available from www.businessweek.com/innovate/content/jul2006/ id20060713_755844.htm. 11. Larry Huston and Nabil Sakkab, Connect and Develop: Inside Procter & Gambles New Model for Innovation, Harvard Business Review Vol. 84, no. 3, (March 2006). 12. George S. Day and Paul J.H. Schoemaker, Scanning the Periphery, Harvard Business Review Vol. 83, no. 11 (November 2005): 13548. 13. Clayton M. Christensen, The Innovators Dilemma (New York: Harper Collins Publishers, 2000). 14. Earlier descriptions of disruptive technology are in: Richard N. Foster, Innovation: The Attackers Advantage (New York: Summit
MARCH 2008

8 17

Worlds Top Innovation Management Scholars

-Journal of Product Innovation Management, May 2007

Dr. Robert G. Cooper

Dr. Robert G. Cooper is one of the most influential innovation thought leaders in the business world today. He pioneered the original research that led to many ground-breaking discoveries including the Stage-Gate Idea-to-Launch process. Now implemented by almost 80% of North American companies, it is considered to be one of the most important discoveries in the field of innovation management. He has spent more than 30 years studying the practices and pitfalls of 3,000+ new product projects in thousands of companies and has assembled the worlds most comprehensive research on the topic. His presentations and practical consulting advice have been widely applauded by corporate and business event audiences throughout the world making him one of the most sought-after speakers. A prolific author, he has published more than 90 academic articles and seven books, including the best selling Winning at New Products, 3rd Edition. He is the recipient of numerous prestigious awards including the Crawford Fellow from the Product Development and Management Association (PDMA) and the Maurice Holland Award from the Industrial Research Institute (IRI). Dr. Cooper is a Professor of Marketing and Technology Management at the Michael G. DeGroote School of Business at McMaster University in Ontario, Canada and Distinguished Fellow at the Institute for the Study of Business Markets (ISBM) at Penn State University in Pennsylvania, USA.

Dr. Scott J. Edgett

Dr. Scott J. Edgett is internationally recognized as one of the worlds top experts in product innovation and is the pioneer of portfolio management for product innovation. He is a high profile speaker and sought-after consultant. Dr. Edgett has had extensive experience working with large multinational clients in a variety of industries, principally focusing on issues affecting innovation leadership and capability. He is credited with helping business executives and innovation professionals successfully implement world-class innovation processes that have generated outstanding results. His speaking engagements and consulting work have taken him around the globe to work with some of the worlds best innovators and companies among the Fortune 1000. Dr. Edgett is Chief Executive Officer and co-founder, with Dr. Robert G. Cooper, of both Product Development Institute and Stage-Gate Inc. He has spent more than 20 years researching and developing innovation best practices and working with organizations in product innovation. He is a prolific author having coauthored six books including the popular Portfolio Management for New Products, 2nd Edition and has published more than 60 academic articles. Dr. Edgett is a former Professor of the Michael G. DeGroote School of Business, McMaster University in Ontario and is a Faculty Scholar at the Institute for the Study of Business Markets (ISBM) at Penn State University.

Product Development Institute Inc. 2000-2008

Stage-Gate Inc. helps companies achieve successful product innovation.

Top performing companies focus on the four drivers of The Innovation Diamond.
Dr. Robert G. Cooper and Dr. Scott J. Edgett Founders of Stage-Gate Inc.

Diamond
The Innovation
Product Innovation & Technology Strategy

Climate, Culture & Leadership

New Product Performance

Portfolio Management

Idea-to-Launch System: Stage-Gate

Are you ready to win?

Achieve the four drivers of performance:
Innovation efforts that support business goals Projects that achieve maximum value Climate and culture that embrace innovation Process that drives lean, rapid and profitable innovation

2008 Stage-Gate Inc. Stage-Gate is a registered trademark of Product Development Institute Inc. Innovation Diamond and Winning at Product Innovation are trademarks of Stage-Gate Inc. Stage-Gate Inc. is a Member Company of Product Development Institute Inc.

Stage-Gate Inc. is the worlds leading full-service provider of Product Innovation solutions
Product Product

Innovation Strategy

Portfolio Process Design

Stage-Gate Process Design

Implementation Planning

Implementation Management

New Product Performance

Leadership: Climate & Cultural Change

SGI collaborates with your organization to develop your own unique Product Innovation Transformation Roadmap

Complementary solutions tailored to each clients unique needs

Thought Leadership
Speaker services Motivational presentations and training delivered by Dr. Cooper or Dr. Edgett Publications Best-selling books Articles and papers Public seminars Annual Stage-Gate Summit

Strategic Advisory and Transformation Services

Product Innovation Strategy Portfolio Process Design Stage-Gate Process Design Implementation Planning Implementation Management Climate & Culture Change Training Programs

Leading-Edge Products
BenchmarkerTM On Demand Evaluation of your NPD Performance & Practices SG NavigatorTM Complete Stage-Gate Best Practices Accelerator Kit Stage-Gate Ready Certification Expert Evaluation of NPD Software

Stage-Gate Inc. is the worlds leading full-service provider of solutions which enable organizations
to improve their Product Innovation and Portfolio Management capabilities. A globally recognized and trusted brand, Stage-Gate Inc. accelerates client success with strategic advisory and transformation services, leading-edge products, best-selling publications, first-rate seminars and Stage-Gate certification. Clients include more than 5000 organizations of all sizes across all industries.

+1-905-304-8797
www.stage-gate.com
Stage-Gate Inc. +1-905-304-8797 info@stage-gate.com www.stage-gate.com

StageGateInc.
2008InnovationSeminars
Developing a Product Innovation Strategy and Deciding Your New Product Portfolio: Making Strategic Choices and Picking the Winners Led by Dr. Robert Cooper September 23-24, 2008 - Washington, DC

Ledbythe WORLDSTOPINNOVATIONSCHOLAR DR.ROBERTG.COOPER

Picking the right projects and platforms to invest in is at the heart of successful product innovation. But effective project selections or portfolio management hinges on having a clearly defined and articulated Product Innovation and Technology Strategy for your business; the markets, technologies or products you should focus your efforts on and a strong link to portfolio management. Most businesses lack an effective and clearly articulated product innovation strategy; yet having this strategy is one of the important common denominators of successful businesses. Join Dr. Cooper and learn how to ensure scarce resources are consistently allocated to the most meritorious and strategic projects. The Stage-Gate Innovation Process is the worlds most widely used method for taking new product ideas from inception through to successful launch because it works! The critical challenge is not in the decision to adopt Stage-Gate but in how you implement it so it becomes engrained in the very fabric of your organization. Join Dr. Robert Cooper and Michael J. Wiebe, Principal Consultant at StageGate Inc., and learn how to implement the Stage-Gate Process in your organization to realize its fullest potential. Throwing more resources and money at your new product pipeline will not guarantee success. Numerous studies have shown that there is no proven link between increased spending and success. It goes undisputed that the single most important driver of new product success is your New Product Process. The better your process, the better your results - regardless of economic conditions. This seminar unveils new advanced techniques every organization must incorporate into their New Product Process in order to realize top performance. Complimentary Benchmarking Report on your Idea-to-Launch process. Product innovations are the life blood of the modern corporation. But product innovation is in trouble - R&D productivity is down - there is less bang for buck. Game-changing or blockbuster product innovations are absent in most firms' development portfolios. And the key role of innovation has not gone unnoticed by the financial community - their message is clear -organic growth based on product innovation is paramount, with Wall Street placing increased pressure on CEOs to deliver. Join Dr. Cooper for this critical seminar on sustaining organic growth through innovation. Developments that build capabilities new platforms, new technology, and fundamental research lay the seeds for a family of winning new products, or a much improved manufacturing process. These are your "tomorrow projects" and potential game-changers that give your business sustainable competitive advantage. Technology Development projects are the foundation for new products and new processes and thus are vital to the prosperity of the modern corporation.

Successfully Designing and Implementing the Stage-Gate Process: A Best Practice Approach Led by Dr. Robert Cooper and Michael Wiebe April 22-24, 2008 - Tampa, FL November 18-20, 2008 - Clearwater, FL

Stage-Gate Innovation: Advanced Techniques for Accelerating the New Product Process for Maximum Productivity Led by Dr. Robert Cooper May 21-22, 2008 - Washington, DC

Generating Breakthrough New Product Ideas: Feeding the Innovation Funnel Led by Dr. Robert Cooper June 10-11, 2008 - Philadelphia, PA

Technology Developments, Platforms & Fundamental Research Breakthroughs: Managing For Profitable Results Led by Dr. Robert Cooper June 12, 2008 - Philadelphia, PA

Formoreinformationortoregisterforaseminar, pleasecontactValerieSather+19053048797 orvalerie.sather@stagegate.com

Stage-Gate is a registered trademark of Product Development Institute Inc.
Stage-Gate Inc. 2008

Visit us online at www.stage-gate.com

BEST SELLING BOOKS ON PRODUCT INNOVATION

Authored by world-renowned innovation experts - Dr. R.G. Cooper and Dr. S.J. Edgett
GENERATING BREAKTHROUGH NEW PRODUCT IDEAS: Feeding the Innovation Funnel Senior executives are experiencing a shortage of game-changing ideas that drive growth. This book explains how to feed your innovation funnel with a steady stream of breakthrough new product ideas, providing numerous examples of the methods, approaches and techniques used by leading companies such as Motorola and Procter & Gamble. Learn more about the impact you can make by leveraging an innovation strategy, voice-of-customer research, external ideas via open innovation, employees creative talent, and fundamental research. Establish a proactive Discovery Stage that focuses on the drivers of innovation performance to transform your organization into an innovation machine. Price: US $34.95 Soft Cover LEAN, RAPID AND PROFITABLE NEW PRODUCT DEVELOPMENT Although many companies have introduced product innovation processes, they are still struggling to achieve the financial results they expected. Dr. Robert Cooper and Dr. Scott Edgett explain how to leverage the principle of lean, maximize the value of a new product portfolio, streamline the product innovation process, and achieve growth that is both profitable and sustainable. Discover the seven principles to Lean, Rapid and Profitable New Product Development. Price: US $29.95 Soft Cover PRODUCT LEADERSHIP: PATHWAYS TO PROFITABLE INNOVATION (Second Edition) Product Leadership, Second Edition, is the advanced course a comprehensive guide for executives and senior managers who have a mandate to grow their businesses and impact performance through product innovation. Product Leadership goes beyond explaining what strategies are helpful to a companys success. It explores how to chart a competitive strategy and foster a culture that encourages product innovation. This book showcases examples of how companies such as Microsoft, GE, Nike and many others consistently prosper and it provides the reader with a wealth of practical knowledge. Price: US $29.95 Hard Cover PORTFOLIO MANAGEMENT FOR NEW PRODUCTS (Second Edition) Portfolio Management, Second Edition, forces the reader to take a look at the big picture and question whether their organization is meeting its new product goals. This ground-breaking book presents a rigorous and practical approach to managing an organizations product portfolio and provides true examples of companies portfolio strategies. It provides a wealth of knowledge, including how to pick the right approach for your organization and how to balance and maximize the value of your portfolio. This book is an essential resource for any company whose profitability, and very existence, relies upon the products it chooses to develop and the speed with which they are brought to market. Price: US $44.00 - Hard Cover WINNING AT NEW PRODUCTS (Third Edition) For over a decade, Dr. Robert G. Coopers book has served as a bible for product developers world-wide. In this fully updated and expanded edition, Dr. Cooper demonstrates with compelling evidence why consistent product development is so vital to corporate growth and how to maximize your chances for success. With Winning at New Products, you will learn methods for developing a Stage-Gate process, screening and prioritizing new product projects, incorporating customer input into product design, and much more to accelerate your speed-to-market. Price: US $29.00 Soft Cover

PRODUCT DEVELOPMENT FOR THE SERVICE SECTOR In Product Development for the Service Sector, a comprehensive approach to product development tailored specifically for the dynamics of the service industries is presented, leveraging the extensive research and consulting experiences of Dr. Robert Cooper and Dr. Scott Edgett. Their experiences with companies such as Sprint, the Pennsylvania Energy Company, Marriott, VISA and the Royal Bank of Canada are highlighted. Price: US $39.95 Hard Cover

BEST PRACTICES IN PRODUCT INNOVATION: What Distinguishes the Top Performers Best Practices in Product Innovation is a breakthrough study that reveals the impact of performance drivers at the business unit level. Authored by Dr. Robert G. Cooper, Dr. Scott J. Edgett and Dr. Elko J. Kleinschmidt, the foremost world experts in product innovation, this report provides five in-depth case studies of top performing companies, isolates the drivers of innovation strategy, outlines metrics used to measure new product process and practices, and much more. Price: US $495.00 Soft Cover
Stage-Gate is a registered trademark of Product Development Institute Inc. Stage-Gate Inc. 2008

All Books are available for Online Purchase

Visit www.stage-gate.com