Evidence-based innovation, short and sweet
Knowledge database Organisation Leadership & Culture Strategy & control D.2: Innovation with impact: evidence-based innovationThe vast majority of innovation projects and start-ups fail [1]. At first glance, the reasons for this appear to be manifold.
Problem description, research question and relevance
The vast majority of innovation projects and start-ups fail [1]. At first glance, the reasons for this appear to be manifold. They range from misjudging one's own capabilities or resources to missing or flawed innovation strategies, from misinterpreting user insights or market potential to the famous innovator's dilemma of focussing on the wrong customers and ignoring disruptive forces.
In addition, bias, tendentious interpretation of findings (biases) and an inside-out perspective on the corporate environment harbour the risk of overlooking or misinterpreting something. All of these seemingly disparate factors have a common denominator: the inability to create an evidential and therefore reliable basis for sound decisions in the innovation process.
Organisations are often simply not in a position to generate and/or evaluate the relevant data that would enable them to realistically assess the opportunities and risks of innovations at every stage of the innovation process. And even if data is available, its quality, validity or relevance often leaves much to be desired. This shortcoming may remain unnoticed (or ignored) for a long time, leading to a sad consequence: many innovation projects end in failure. A well-known and serious "pathology" in the innovation process is therefore "to stop too late". Due to the particularly high level of complexity in the healthcare sector, digital innovation projects that turn out to be less promising late in the development process are particularly costly.
The question therefore arises as to how one can determine as early as possible in innovation projects whether one is working on a "problem worth solving", i.e. an insufficient or unmet need that has the necessary importance and scope, on the one hand, and a necessary and sufficient solution that has the desired impact for both customers/users and providers, on the other.
Recommendations for practice
By integrating the principles, processes and methodologies of EBI, companies can
- Improve the performance of the innovation process
EBI leads more quickly to valid findings, enables decisions to be made and thus sets the course more efficiently for the further innovation process.
- Recognise and stop hopeless innovation ventures at an early stage
EBI exposes potential-less innovation endeavours at an early stage and thus prevents resources from being invested in hopeless projects for years.
- Manage a more effective project portfolio
EBI makes it possible to identify the most promising innovation opportunities in the company so that resources can be focussed on them.
- Creating decision-making certainty and buy-in in the team
The certainty of being able to make evidence-based decisions creates trust, increases the commitment of all those involved and boosts acceptance at management level. Knowing that you are working on promising projects strengthens self-confidence in the innovation team and self-image in the company.
In the next article, we will explain what the first steps are for an evidence-based innovation approach.
Literature and other sources
[1] https://www.strategyzer.com/library/why-companies-fail-how-to-prevent-it, last accessed 29 April 2024.