IDEA EVALUATION

19.11.2020
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ENP 1783_FOUNDATION STEPS IN VENTURE CREATION

By Vrinda Chaudhary | SOFD | Semester 3

Overview

● The evaluation of ideas is one among the foremost complex and demanding tasks in
idea management, innovation management also as within the management of
digital transformation during a company.
● The challenge is to filter ideas that are within strategic search fields, that aren't too
obvious but also not unrealistic. Successful ideas are within a narrow range.
● In practice, this is often the challenge you face: you're within the phase of idea
generation. You have ideas for organizational innovation, new products or digital
business models. But which ones are the best? Which ones should you pursue? This
question is more complex than you think.
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Goals

Identifying successful ideas

● Simply put, two things in innovation management bring success: "Doing projects
right" and "Doing the proper projects".The aim of "Doing the proper projects" is to
spot those ideas and projects that have the best impact.
● the foremost promising ideas are to be filtered out from the multitude of options to
urge the utmost out of the limited resources for innovations.
● A functioning idea evaluation should also make sure that possible flops are detected
and stopped at an early stage.
● The evaluation of ideas and innovation projects is a crucial aspect of the innovation
process to spot the foremost important topics with the strongest leverage.
● Most crucial criteria are success potential and feasibility. it's important not only to
believe quantitative assessments but also to think about qualitative assessments.

Different Criteria & Different Stages

are incorporated: for instance, the sales and profit potential, opportunities for
differentiation from the competition, implementation and risk.

Evaluation of ideas based on different criteria

Besides, a multi-stage evaluation process for ideas is recommended. The criteria for the
evaluation shall get more rational step by step.

● In the beginning, emotions are the most evaluation criteria: How well is that the idea
formulated? How convincing does it sound? How well was the benefit formulated?
● In the middle of a thought development process, questions like these are at stake:
Can the thought be implemented? Is the effort concerning the benefit?
● At the ultimate stage of idea development, pragmatic questions often arise: Are the
required resources available for implementation? Does the company find the right
people to take over project management?

Ingenious ideas only emerge within the course of the thought evaluation process.
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Need For Different Perspectives

A question that's, for instance, repeatedly asked in idea management and innovation
management: What does marketing evaluate specific ideas? How does the engineering
department assess them? How are ideas evaluated by the management? And how do
customers react? To implement ideas successfully, it's recommended to gauge ideas from
several perspectives:

● From a marketing point of view, a thought might offer the potential to convince
customers.
● The technology department considers thought to be feasible.
● The management is standing behind and idea and supports implementation.
● Customers rate the benefits as high.
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Evaluation Techniques

● Pass/Fail: Pass/fail is pretty easy. Ideas must meet specific required criteria to be
considered and/or move forward within the selection process.
● Team Building: Building teams around ideas can empower collaboration across
companies and around ideas, but some people can use the team build stage as a
further validation measure. Imagine, perhaps, that a popular idea gained a lot of
votes, but then when the time came to get people to volunteer to work on the idea,
no one joined the team… What does that tell you about the extent of urgency
around an idea?
● Business Assessment: There is a variety of the way to gauge a thought against
pre-defined criteria: the five-star assessment, idea scoring, ROI analysis, analysis.
Some tools even allow you to weight the standards so that you'll prioritize not just
against the ratings, but against the various criteria themselves.
● Pairwise Comparison: Organizations will put up ideas right next to at least one
another and ask which idea is preferred? This generates a ranking system for a
whole list of ideas with the foremost commonly chosen ideas appearing on top and
therefore the least selected at rock bottom.
● Research and Investigation: This evaluation measure asks for extra
information. Companies use tons of traditional proposal development and idea
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pitching templates for this type of evaluation: everything from business model
canvas, SWOT analysis, to COSTAR that asks for additional information about an
idea that helps to develop an initial idea to have a business application. Ideas that
can’t answer these questions with compelling & concrete answers don’t generally
progress to later stages.
● Financial Analysis: This deciding is typically left to experts (although sometimes
estimations can occur through large-scale inquiry). Either way, the associated
financial costs and potential gains of thought are reviewed and used for deciding.
● Funding: most of the people are conversant in getting a budget from within their
company, but crowdfunding is differently to validate ideas. A great example is, of
course, the Kickstarter model which not only empowers individuals to gather money
for his or her ideas, it also validates that there’s an audience for his or her idea in
the first place.

There are more evaluation tools, but these are just a couple of that are available to anyone
looking to rate and prioritize ideas.

Reference links: –
https://www.business2community.com/business-innovation/7-idea-evaluation-techniques-
01891691

https://innolytics-innovation.com/idea-evaluation/

https://www.lead-innovation.com/english-blog/evaluation-of-ideas#:~:text=Idea
%20evaluation%20%2D%20%22Making%20the%20right%20projects%22&text=The%20aim
%20of%20%22Doing%20the,that%20have%20the%20greatest%20impact.&text=A
%20functioning%20idea%20evaluation%20should,stopped%20at%20an%20early%20stage.

https://www.bcitsa.ca/beaboss/wp-content/uploads/sites/6/2016/09/The-Idea-Evaluation-
Matrix.pdf

https://www.viima.com/blog/idea-evaluation-what-is-it-and-how-should-one-do-it

https://innovationmanagement.se/2008/05/18/how-to-evaluate-ideas/
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