Five critical questions to help you determine the potential value of your new idea

People constantly invent new products. They also invest a lot of time, effort and budget in them. But afterwards they often turn out not to work after all. There is no market for them, so they die a quiet death. And that, of course, is a pity.

‍

Therefore, in the coming weeks, I will discuss three open doors and the associated critical questions that assist in making the right choices in the concept development process.

In this article, I discuss open door number one. 

‍‍

OPEN DOOR NUMBER ONE: Does it pay off?

‍
he user likes it? Great! owever, do consider as early as possible whether and what value your solution brings in the bigger picture. So, for your organization, for society, and for the world.

‍

These five questions will help you determine whether you should pursue an idea or not.

1. Does the direction, new idea or problem to be solved fit the organization?

‍

Just because your customer experiences a problem does not mean that you are the one to solve it. Consider whether and how a new proposition fits within your ambition and vision. Think about why you are best suited to do this. And list the success criteria to achieve your ambition.

2. What is the approximate market potential?
‍

Okay, your new idea aligns with the vision and ambition. Well done! But how large is the market for your product really? And what share do you think you'll take?

Equally important, consider who (or what) might hinder your progress. Your competitors, or societal and technological developments? Could it be stagnant growth due to a pandemic?

‍

You really don't need to do a comprehensive market analysis for this. With some creative Googling, you can easily make a rough estimate. This will greatly assist you in determining whether you should invest in a concept or not.
‍‍

3. Is the problem big enough?

‍

A loose pavement tile around the corner of your house can be a problem. However, before you establish a company and start straightening pavement tiles, it's essential to consider: how many people actually perceive it as a problem? And how often does it actually occur? For three people and six tiles, it might not be worth the effort.

Furthermore, even more importantly: how urgent or troublesome is the issue, and what are people truly willing to do to have it resolved?

‍

After answering these questions, you should have a good idea of whether you have a"problem worth solving" to tackle.

##widget##

‍

4. Do I have user access?

‍

So the problem is clear and significant enough. You may now wonder how effectively you can reach the people who are affected by it, in a way that piques their interest in your solution.

‍

When developing a new proposition, it's important to have good connections with your early adopters. After all, they are responsible for the initial traction, allowing you to justify your investment. Additionally, they provide crucial initial feedback to help improve your product.

5. What potential value will the new product deliver?

‍

As mentioned, your users are important. But do you have any idea what value the user brings you? And how that value is evolving?

This does not necessarily have to be expressed in euros. Calculating with a model with many unknowns (because there are many at the beginning) is challenging. And value is subject to many standards. The bottom line is that the value invested and what it will yield must be in balance.

‍

Why are these questions often forgotten?

‍

Pretty reasonable questions right? So why are these so often forgotten?

‍

Many designers immediately think of solutions to the problems that users experience, especially since human-centered design has become the primary design approach. Additionally, answering these questions simply does not fall within the skill set of an average designer.

‍

On the other hand, the customer with a limited budget would like to make progress quickly. The user wants it? Great. Then, let's make it. There isn't much time to conduct an analysis in this phase. And, in this stage, considering whether we can activate the early adopter ? No way, we'll consider that later.

‍

Finally, there is the unpredictability that is inherent in the innovation process. Especially in the initial phase of concept development, it can be challenging to make definitive statements. The target audience is not yet clearly defined, and the value it will provide is expressed only in vague, preliminary terms.
‍

What goes wrong if you forget?

‍‍

However, you should ask these critical questions as early as possible. There is a chance that later in the process (when you really cannot postpone the questions any further), you may realize that there is no genuine alignment with your vision or core values.

‍

Or perhaps even more annoying: that the market is not big enough at all to position the product profitably. 

‍

In short, you're putting your money blindly on a horse that turns out to be a Shetland pony. Super fun for kids to take a ride on, but he won't be winningLe Prix de Diane .
‍

How do we explore potential value at MakerLab ?‍

‍

We don't pretend to be the best business analysts. Nor do we pretend to be seasoned strategy consultants.

‍

But we are pragmatic creators with a creatively analytical perspective. Therefore, we keep it small enough to quickly conduct the analysis and large enough to make a qualitative assessment. Using experiment design, we seek answers.

‍

By asking a few questions about ambition and conducting a simple SWOT analysis, you can already clarify the strategic fit of a company or department. Alternatively, you can understand the market's development through an outside-in approach and trend analysis. Or, you can develop your own business model for your concept using our Business Impact Model, which also helps you determine the value of your concept right away.

‍‍

Why this works 

‍

100% certainty is unattainable, especially in the early stages of the product development process. There are simply too many uncertainties for that.

‍

This is why we often apply the 80/20 rule: 80% of the work in 20% of the time. The goal is to quickly find sufficient (tangible) evidence that can justify the investment in a concept.

‍

That way we focus on the most promising new ideas, learn quickly why they do (and do not) work, and avoid unnecessary surprises later in the process. 

‍

True to our credo: 'see it to believe it'.