The Four Idea Types
Introduction to Module 2: Four Idea Types
In this module we will look at categorising ideas according to four idea types. You'll learn about the four categories, why they are useful and which kinds of ideas are most important to your innovation initiative.
Pre-questions (questions to think about before moving forward):
- Do you categorise ideas in your organisation?
- If so, how?
- Why do you think it is (or would be) useful to categorise ideas?
Four idea Types
Many innovation experts categorise ideas into types according the subject, for example there are product ideas, process ideas, business model ideas and so on. While this can be useful in terms of applying categories, it does not reflect the value of an idea to an organisation like yours. For this reason, it is far more effective to divide ideas into four different types based on value which can be measured on the Innovation Initiative Performance Indicator, which I'll introduce in module 3.
The four idea types are
- iVision pushers.
- iVision supporters.
- Useful, non-iVision ideas.
- Useless ideas.
Let's look at each of them.
iVision pushers
The most valuable type of idea is one that pushes your company's iVision − and, hence, strategic vision − forward in one big leap. Think Apple and the iPhone. Think Toyota and just in time inventory management. Think Facebook's 'like' button. All of these ideas propelled their companies forward and gave them a big leap over their competitors. Apple's iPhone made every other kind of phone seem old-fashioned. Toyota's just in time inventory management allowed the company to reduce drastically inventory costs and enforced discipline on supply-chain management, forcing discovery and elimination in unnecessary complications in the chain as well as influencing product design to enable more efficient assembly. The like button radically increased Facebook user engagement and interaction. Indeed, imagine Facebook without the Like button.
iVision pushers are rare, but extremely valuable when implemented. However, they are often radical ideas and they often require substantial investment. That makes them risky. If they fail, they tend to fail spectacularly. Apple's first go at the tablet computer was the Newton, which it brought to market in 1992. It was an expensive and embarrassing flop, in part because it became a joke among comedians and computer pundits. Because of this risk, decision makers are often reluctant to implement potential iVision pushers.
However, if iVision pushers succeed, they can be very valuable indeed. The iPhone is worth billions of dollars. Toyota's just in time inventory management has saved the company billions by improving production efficiency and innovation.
Fortunately, some iVision pushers are not terribly risky. Facebook's like button was technically simple to implement and had it not been effective, it could be easily removed. But, of course, it was amazingly effective. However, iVIsion pushers are relatively rare and, I suspect, the originators of the ideas are not always aware of how profound their seemingly simple ideas are.
Founding Ideas
A subcategory of iVision pushers is the founding idea, which is an idea that forms the basis of a new company, for example: Uber's mobile phone app, Amazon's first on-line bookshop or Dyson's first vacuum cleaner. Because such ideas form the basis of all new companies, they are rarely a part of innovation initiatives. The exception is when a company uses an idea to launch an distinct, new business unit. Examples of this include Google's self driving car (now a new business unit called Waymo) or Flikr, which was originally a photo sharing tool in Neverending, a multiplayer on-line game. The tool proved far more popular than the game and was spun off as a separate and very profitable business.
Founding ideas within existing organisations often occur when people realise that tools they built for their own use are commercially exploitable. For example, Amazon had built up expertise in building web servers to support its on-line shop. Someone high up, probably CEO Jeff Bezos, realised that the company could make their servers available to other organisations that need secure, well managed server space on a flexible basis. As a result, Amazon Web Services was launched and has proven remarkably successful.
iVision supporters
iVision supporters are ideas that are in line with innovation vision and help strengthen it. Such ideas include the ideas that go into iPhone upgrades, technologies that can improve Toyota's just in time inventory management, and tweaking the way people can interact with each other on Facebook.
IVision supporters are the life blood of innovation. They enhance your strategic vision, ensure your company is up to date and keep you ahead of the competition. These ideas need to be the primary focus of your innovation initiative. We will explore how to do this in module 4.
Useful, non-iVision ideas
Designing a software tool that makes processing invoices more efficient is an example. It reduces operational costs, improves efficiency and leads to fewer mistakes in invoicing. But, unless your company makes and sells software, it has nothing to do with your strategic vision.
Another way to look at useful, non-iVision ideas is that they do not give you a competitive edge. If your company is a global leader in high-technology waffle makers, an idea to build a software tool to streamline human resource (HR) processes will not give you any kind of competitive edge over the competition. Sure, it might make HR easier. It might cut costs. But in the highly competitive world of waffle makers, your implementation of this software will not strike fear into the hearts of your competitors. Indeed, from their perspective, it will not make any difference. They will not notice.
As a result, you have to be careful with non-strategic ideas. In our example, rather than programming your own software tool, you might buy an off-the-shelf software. Off-the-shelf software may not be as ideal as your own design, but it is good enough. You do not need to outshine the competition in HR processes. You need to outshine them in high-technology waffle maker design and manufacture.
Unfortunately, many innovation initiatives tend to capture lots of useful, non-iVision ideas, rather than iVision supporters and pushers. This is not to say that such ideas are not worthwhile. They are. But they do not inspire. They are far less valuable than iVision pushers and supporters. Too many of them can be demotivating to the innovation team that, at least in my experience, want to be responsible for more exciting ideas that really make a difference to the company.
Useless ideas
The last category of ideas is useless ideas. These are ideas that have nothing to do with strategic vision and are irrelevant to business needs. If you work at Facebook and propose a Facebook branded vacuum cleaner, that would be an example of a useless idea. Facebook is not about vacuum cleaners. And while such tools are useful for cleaning the company's office, there is no rational reason for the company to design its own vacuum cleaners. There are already many companies that produce really great vacuum cleaners.
Sadly, many innovation initiatives capture too many useless ideas, particularly initiatives in massive companies (which are involved in numerous activities) and poorly designed crowd-sourcing initiatives that collect ideas from the public.
Useless ideas may seem proof that your innovation initiative is collecting ideas, but because they are useless and because you need to invest time in administering them, useless ideas actually incur a cost without providing any real benefit.
If you are an innovation manager, you clearly want to minimise useless ideas.
A Word About Complaints
Innovation managers running suggestion scheme and idea management software sometimes tell me that they collect a number of complaints submitted as ideas. Often, these complaints seem useless − and often they are. However, sometimes the solution to a complaint is a useful, non-iVision idea. So, do not dismiss all complaints as useless. Moreover, if a particular complaint is being made by several people, it probably needs attention as a useful idea and one who's solution will likely lead to increased employee satisfaction.
Worksheet questions
Download the worksheet: | OpenOffice format | MS Word format |
- Find examples of each idea type − from your organisation's innovation initiative if possible.
- What are some of the iVision supporters that have been developed in your organisation over the past two years. If you cannot think of any, why is this?
- Estimate the percentage of useless, non-iVision ideas your initiative captures.
- Think about your organisation. Do you have tools or services that could be commercialised? What are they?
