Why Innovation Matters Even More Today - Transforming Your STEM Career Through Leadership and Innovation - page 25

TABLE 2.2 Tests of a new product or service

Test Meaning

1. Valuable benefits
test

Does the new product, service, technology or process pro-
vide benefits in a manner that is clearly superior to existing
services or methods? Can you articulate the “value proposi-
tion” of what is new and why it is better in value terms that
c ustomers or clients can appreciate?

2. Scale-up test Can the concept be mass-produced in volumes and with the

consistent quality to its specification in order to satisfy the
market need? There have been many ideas that made it to
the prototype stage, but when it came time to scale up, they
failed to be “mass-producible” or production proved to be
prohibitive from a cost perspective.

3. Marketing test Have you determined or assessed demand, and do you have a

channel to the client or consumer base? Many inventors end up
with a garage or warehouse full of their products, because they
did not do their homework on the marketing test. The whole
marketing mix must be planned as part of the commercialisa-
tion process. This includes design,
b randing, pricing, distribution, sales, and other factors.

4. Leadership (team)
test

Do the key people involved in this initiative have the knowledge,
s kills, experience and courage to take it through to fruition?

5. Intellectual
property control
test

You have to make decisions around your IP, and either buy,
own or licence-in the core technologies and other elements
of IP involved in the innovation.

6. ROI (return on
investment) test

This represents the financial bottom line of the innovation.
Will it pay?
The new concept must generate enough profit to make
it worthwhile, including accounting for risk and the time
d iscounted value of money.

7. Corporate social
responsibility test

This is also sometimes referred to as the sustainable develop-
ment or sustainability test, and refers to the environmental
sustainability of the initiative and also the social/community
outcomes.
Products, services and technologies must now at least not
harm the environment and community, or do so minimally,
and where possible are advantaged by producing positive bot-
tom line outcomes on all these dimensions. Leading compa-
nies often find a way to make progress on all three dimensions
of value creation outcomes (financial, environmental, and
social), with their inventions and innovations.

8. Strategic fit test Is the new initiative (product, service, process, technology,

business model) consistent and aligned with your firm's
overall business strategy?

Source: Samson D. (2010)