Resources

Different Approaches to Innovation

The following primer describes the main approaches to innovation as well as the new approach we are developing together in the Lab. While the traditional approaches work well in some situations, they are limited in their ability to address complex problems in dynamic environments. 

Stage-Gate

The stage-gate process follows a pre-set sequence of stages, such as a preliminary assessment and developing the product. Each stage is followed by a gate that represents a decision point. Senior managers make a “go/no-go” decision about whether to continue to invest in the project or end it. With each stage, costs and organizational commitment increase and uncertainty decrease.

An illustration of the stage gate process, starting with an idea and ending with post-implementation review in two circles. In between, there are 5 gates in grey triangles and 5 stages in yellow rectangles. Each stage is followed by gate that represents a decision point. Gate 1 is an initial screen. Stage 1 is a preliminary assessment followed by gate 2 which is a second screen. Stage 2 is a detailed investigation preparation. Gate 3 is a a decision on business case. Stage 3 is development. Gate 4 is a post-development review. Stage 4 is testing and validation. Gate 5 is pre-commercialization business analysis. Stage 5 is full-production and market launch.

Design Thinking

Design thinking applies to the entire innovation process; the design principles that are typically used to make new products useful and attractive. The goal is to create products or processes that better meet users’ needs and desires. Designers begin by looking at the problem from the user’s perspective. This human-centred discovery process is followed by iterative cycles of prototyping, testing, and refinement.

An illustration of 5 interconnected hexagons. Each hexagon represents a stage in the design thinking process and includes a caption with an arrow. The process starts with empathize ("Learn about the audience"), followed by define ("Sharpen key questions"), ideate ("Brainstorm and create solutions"), prototype ("Build representations of one or more ideas") and test ("Test ideas and gain user feedback").

Open Innovation

Open innovation sources ideas from outside the organization, often in a transactional (rather than collaborative) way. This model is decentralized and participatory. Unlike closed approaches, which rely only on the organization’s knowledge, open innovation employs a purposeful flow of learning in and out of the organization to accelerate innovation and expand markets.

An illustration of two funnels next to each other labelled closed innovation and open innovation. The first funnel, closed innovation, shows internal ideas represented as purple arrows travelling through the opening of the funnel towards a black box labelled market. The second funnel, open innovation, shows purple arrows representing internal ideas and yellow arrows representing external ideas. Both purple and yellow arrows travel through the opening and also enter other sides of the funnel labelled external collaborators and alternative market. Together, they travel towards a black box labelled market.

Lean Startup

The key tenets are ‘failing fast’ and ‘continuous learning’. This approach starts with the development of a minimum viable product (MVP), which is used to test ideas and to gather customer feedback. Once the MVP is launched, data from customers are collected, which feeds into the iterative process of product improvement. Although this approach is mainly used by start-ups, it is increasingly applied by larger organizations. 

An illustration of the 6-stage lean start-up cycle with alternating yellow and black circles. Each circle represents a step in the cycle, starting with build, followed by code, measure, data, learn, and ideas. Each step is connected with arrows to form a circular process.

Systemic Design

This approach is often used by NGOs to tackle ‘wicked’ societal, economic, and environmental problems. It draws systems thinking into design thinking so that the complexity of the system can be incorporated into the design.

  • An illustration of the 7-step systemic design process. Each step is represented by a white circle, outlined with a yellow circle then a grey circle overlaid with a purple icon. Each step is connected by a winding grey line which ends at step 7. Step 1 is framing the system. Step 2 is listening to the system. Step 3 is understanding the system. Step 4 is defining the desired future. Step 5 is exploring the possibility space. Step 6 is designing the intervention model. Step 7 is fostering the transition.

The Lab at Innovation North

ADD INNOVATION NORTH COMPASS HERE

This is the new approach to innovation that we are developing in the Lab at Innovation North. Our aim is to motivate innovations that create value for society and are captured by the organization.

Methods

The Innovation North Compass

  1. Zooming in and out
  2. Looking left and right
  3. Measuring and assessing
  4. Embracing tensions

Perspective

  • Centred on people across levels (individual, organizational, societal)

Starting Point

Four possible starting points:

  1. Problem
  2. Awareness
  3. Solution
  4. Action

Advantages

  • Can generate radical innovations and long-term value for the organization.

Limitations

  • A tool that is in development
  • Requires comfort with ambiguity