Evaluate your innovation
DETERMINE IF YOUR INNOVATION IS GOOD
Determining whether an innovation is good requires evaluating its value, feasibility, and impact. Here’s a simple but effective method to assess it:
1. Does It Solve a Real Problem? (Value & Market Fit)
✅ Clear Customer Pain Point: Does it address an urgent problem?
✅ Market Demand: Is there a large enough market willing to pay for it?
✅ Competitive Advantage: Is it significantly better than existing solutions?
Red Flag: If no one really needs or wants it, it’s not a good innovation.
2. Can It Be Built and Scaled? (Feasibility & Execution)
✅ Technical Feasibility: Can it be developed with existing technology?
✅ Scalability: Can production or implementation grow without excessive costs?
✅ Regulatory Compliance: Are there any legal or safety barriers?
Red Flag: If it’s too expensive or technically impossible to scale, it’s risky.
3. Will It Make Money? (Financial Viability)
✅ Profitable Business Model: Can it generate sustainable revenue?
✅ Cost vs. Revenue: Are production and operational costs manageable?
✅ Funding Needs: Is the required investment reasonable and attainable?
Red Flag: If it’s too expensive to develop and has no clear way to make money, it’s a bad business idea.
4. Does It Fit the Future? (Longevity & Impact)
✅ Sustainability: Is it environmentally and socially responsible?
✅ Technology Evolution: Will it stay relevant in 5-10 years?
✅ User Adoption: Is it easy to use and integrate into existing systems?
Red Flag: If it’s a short-lived trend or hard to adopt, it won’t last.
5. Quick Decision Checklist
Question | Yes ✅ | No ❌ |
Does it solve a real and important problem? | ✔ | ❌ |
Is there a clear market willing to pay for it? | ✔ | ❌ |
Can it be built and scaled at a reasonable cost? | ✔ | ❌ |
Does it have a strong business model and profitability potential? | ✔ | ❌ |
Will it remain relevant in the future? | ✔ | ❌ |
👉 If most answers are “Yes” → It’s a good innovation!
👉 If many are “No” → It’s risky and needs improvement.
Evaluating an innovation requires assessing its technical feasibility, market potential, financial viability, and overall impact. Here’s a structured approach:
1. Technical Feasibility
• Functionality: Does the innovation solve a real problem effectively?
• Scalability: Can it be produced or implemented at scale?
• Reliability: Is it robust and durable in real-world conditions?
• Intellectual Property: Are there patents or trade secrets protecting it?
2. Market Potential
• Customer Need: Does it address a significant pain point?
• Market Size: What is the total addressable market (TAM)?
• Competitive Advantage: How does it compare to existing solutions?
• Adoption Barriers: Are there regulatory, technical, or behavioral hurdles?
3. Financial Viability
• Cost Structure: What are the development and production costs?
• Revenue Model: How will it generate revenue (e.g., sales, subscriptions, licensing)?
• Profitability: What are the projected margins and break-even points?
• Funding Needs: Does it require external investment to scale?
4. Business and Strategic Fit
• Alignment with Business Goals: Does it fit with the company’s strategy?
• Partnerships & Ecosystem: Are there synergies with existing stakeholders?
• Regulatory Compliance: Does it meet legal and industry standards?
5. Impact Assessment
• Sustainability: Does it contribute to environmental or social benefits?
• User Experience: Is it intuitive and easy to adopt?
• Long-Term Viability: Can it adapt to future trends and technologies?
Final Scoring & Decision Matrix
After scoring each category, use weighted scoring to determine the overall potential:
Dimension | Weight (%) | Score (1-5) | Weighted Score |
Technical Feasibility | 20-30% | X | X × Weight |
Market Potential | 25-35% | X | X × Weight |
Financial Viability | 15-25% | X | X × Weight |
Business Fit | 10-20% | X | X × Weight |
Impact Assessment | 10-15% | X | X × Weight |
TOTAL SCORE | 100 % | SUM |
✅ 4.5 – 5.0 → High potential, strong investment case
🟡 3.5 – 4.4 → Moderate potential, needs refinement
❌ < 3.5 → High risk, reconsider investment
EVALUATION YOUR COMPETENCIES AND ACTIVITIES
Evaluating competencies and company activities to stimulate innovation requires assessing:
1. Internal capabilities – Skills, resources, and culture that drive innovation.
2. Processes & activities – How innovation is structured within the company.
3. Strategic alignment – Ensuring innovation fits business goals.
🔹 Scoring: (1-5 scale for each)
• 5: Strong innovation culture, high collaboration
• 3: Moderate, needs improvement
• 1: Rigid structure, resistance to change
🔹 Scoring:
• 5: Well-structured, efficient innovation processes
• 3: Moderate, needs better execution
• 1: No clear innovation activities
🔹 Final Evaluation:
• 4.5 – 5.0: Highly innovative, strong competencies and execution
• 3.5 – 4.4: Moderate innovation capability, improvement needed
• < 3.5: Weak innovation system, major changes required
How to Stimulate Innovation Based on the Evaluation
✅ If Competencies Are Weak: Invest in training, cross-team collaboration, and leadership support.
✅ If Processes Are Weak: Implement structured idea management, increase R&D investment, and speed up execution.
✅ If Strategy Misalignment Exists: Ensure innovation efforts align with long-term business goals.
SWOT METHODOLOGY
The SWOT method can be used as well to identify if you innovation has competitive advantage.
- One point difficult in the innovation, it is to step back and to well identify function or process that will help you to gain advantage. Some times don’t hesitate to restart from a blank sheet, it will help you to rethink the product, the process or the service.
- Some innovation can be blocked because your supplier just close to your facility as a certain type of machine, and he might not have the latest technology and kind of routine is established for years
