How to create

inovation
• Innovations are challenging with uncertainty, risk, and complexity. Developing structured processes and
phases is crucial for successful new product development, ensuring creativity and focus while avoiding
mistakes and maximizing innovation performance.
Innovation is the key to success in any industry,
but it's not just about coming up with a great
idea. It's about taking that idea and turning it
into a reality. That's where the four phases of
successful innovation come in: inspiration,
ideation, implementation, and iteration.

Innovations are challenges, characterized by uncertainty, risk and complexity. This makes it all the more
important to develop a structure, system and methodology for the development, development and
implementation of new products. This also includes a practical innovation process according to different
phases, which on the one hand leaves enough space for creativity, but also leads to the goal in a
focused manner.
The 4 phases of innovation
The phases of an innovation, ie an innovation process, can be divided into four main steps:
1. Idea: collection of innovation potentials, derivation of ideas, evaluation and release of
ideas.
2. Concept: Extensive analysis and derivation of concepts for the solution, implementation
and marketing.
3. Solution: Development and testing of the solutions to the finished product.
4. Market: Arouse and fulfill a customer's needs by implementing in procurement,
production and logistics as well as marketing and sales.
Each phase has its own characteristics. If the front phases are more creative and less
structured, the phases of implementation and marketing are very process-oriented and
focused.
The development of the individual phases depends very much on the individual
requirements of a company. For example, larger companies have a more intensive
assessment with several decision-making stages in the idea phase. Or technology-intensive
organizations with complex products will have a more comprehensive production
implementation. And service providers have different requirements.
Phase 1: Ideas
• An innovation process always starts with the search for and finding innovative potentials and the
derivation of ideas, which are subsequently evaluated.
• An innovation potential is a newly discovered opportunity for innovation. This can be:
o An unfulfilled customer requirement
o A problem with the customer
o A possible new market
o A new technical solution.
• There are countless possibilities for tracking down innovation potentials. There are essentially two
different approaches:

 Targeted search: The search for potentials is based on the innovation strategy and the derived
search fields. Various methods are used to collect ideas internally and externally (open innovation),
e.g. creativity workshops, lead user workshops, idea competitions.
 Random Finding: One encounters randomly discovering impulses for potentials. For example, one
finds a new technology in searches. However, employees can also generate impetus via the
company's suggestion or on the basis of customer feedback.
• An idea emerges from the potential for innovation, a thought-like construct, such as the
new solution in the sense of a new product or a new service. In practice, it can merge into
a one-pager with a description and sketch. In the case of a first description of the ideas,
the reason why the idea is relevant to the company, the potential and the usefulness of
the idea is important.
• The conclusion of the first phase makes the idea assessment. On the basis of defined
criteria, the potential benefits and the feasibility of the company are evaluated. Based on
this, the idea is given a priority and the release for the next phase is decided where the
objectives and expectations are also concretized
Phase 2: Concept
From Phase 1 comes a concrete and released idea with goals and expectations. This is followed by
an intensive analysis phase in order to gather as much information as possible about the idea and its
further processing:
 Market and customer requirements
 Market potential, e.g. Market size, market attractiveness
 Chances, e.g. Differentiation possibilities for the competition
 Risks and feasibility, e.g. Technical feasibility, market entry barriers
 Framework conditions, e.g. Laws, standards, patents
The most intensive and important analysis is that of the customer
requirements, for example:
 What are the needs of customers?
 Are there any unfulfilled or unconscious customer needs?
 Which customer problems are there and should be resolved?
 What is the importance of needs?
• Here, a systematic approach with professional methods such as customer interviews, focus groups,
lead user workshops or customer observations is recommended in order to gain the greatest
possible insight. Especially Lead Users are a very valuable source, because they have many
experiences and many own ideas and solutions as advanced users.

• On the basis of the analyzes, first concepts are developed with regard to the
 Solution
 Implementation
 Marketing
• The solution first includes the requirements for the new product, the specification. Furthermore,
there are first solution concepts in the form of descriptions, sketches or models.
• For a successful and feasible implementation, first thoughts have to be gathered for an
implementation concept. It covers procurement, production and logistics.
Phase 3: Solution
• The aim of Phase 3 is to develop a ready-to-use solution that can be brought to the
market. Solutions are being developed, prototypes built and tests carried out. In addition
to concept and lab tests, the tests also include market tests under real conditions in order
to gain comprehensive feedback.

• Once the solution has reached maturity, it will be released for implementation and
marketing. At the same time, the concepts for implementation and marketing are further
developed and adapted.

• Outputs of this phase are usually technical specifications, CADs and know-how for
application and production.
Phase 4: Market
• The last phase is about bringing the product to the potential customers. On the one hand, this
requires the physical availability of the product. These include procurement, production and logistics
based on defined concepts.

• On the other hand, the customer is aroused and then fulfilled. All marketing and sales channels are
activated. As a basis, internal sales must be convinced and trained in order to bring the products to
the customers in the main step. All these activities can be summarized as innovation marketing.

• At the end of the innovation phases, the new product is transferred to product lifecycle management
in the responsibility of product management. On the basis of the continuous evaluation and analysis
of the product on the market by, for example, customer feedback or quantitative market analyzes,
measures are taken to increase sales, margins and customer satisfaction. Among other things, the
famous 4P tools of marketing are used

Conclusion: 4 phases of innovation

Innovative processes after phases are indispensable. This is because they create structure and
systematicity to avoid mistakes and to increase the innovative performance. This ensures that all
important steps are completed in a timely and correct manner. If there were no processes and phases,
one would orientate without orientation constantly back and forth rather than focused on the goal.
 How to Identify an Important But Underserved Customer Need?

• Creating products and services that yield more profits

largely depends on understanding exactly what
customers need. And in a time when business
competition is stiff, it is essential to deliver high-quality
products and services that gain traction.
If you’re a business aiming for open innovation, it is
worth noting that the best opportunities are found
in your customer’s unmet needs.
Let’s be more practical. No matter what marketing
strategy you adopt, no customer will think about
patronizing your product or service unless they need
Important, but underserved customer it. Therefore, if you don’t want to offer products and
needs happen all too often. This is where services that get woefully ignored in the market, you
the UNITE Jobs-to-be-Done Statement and need to understand your customers’ needs clearly. In
Map come into play. The framework other words, to stand out in business, you need to find
enables you to drive customer-centric a unique way to satisfy their needs.
growth and innovation to increase
customer satisfaction, loyalty, and revenue.
Customers Determine The Progress
• The fact is, most businesses want to stay relevant and innovative and tend to look at
industry trends or other successful companies for business growth. However, a vital
component to business growth is customer needs.
Yes, you heard that right. Customers are the ones who determine the progress and
longevity of your business. Happy customers result in lifetime value and higher retention
rates.
The first step towards creating the type of customer experiences that result in happy
customers is understanding and meeting customer needs.
This article will discuss everything you need to know about customer needs, including
types of customer needs and how to identify them.
 What is a Customer Need?
• A Customer need is a motive that prompts the customer to pay for a product or service. This means
the need is what sponsors the customer’s purchasing decision.

• A typical example of a customer need is what takes place around noon. This is when people in their
workplaces begin to experience hunger (a need) and want to buy lunch. The restaurant’s location,
quality, and type of food are factors customers will consider in choosing the restaurant they will
patronize.

• Building a sustainable business depends on your ability to satisfy your customer’s needs and even
exceed their expectations.
 Types of Customer Needs
Here are the most common types of customer needs that drive a purchasing decision.

Product needs
 Functionality- generally, customers need your products and services to function in a way to satisfy their desire
or solve their problems.
 Convenience- customers only patronize you when your products and services are convenient solutions to the
functions customers are trying to meet.
 Price- customers have unique budgets which sponsor their purchasing decision. Therefore, if your price is
reasonable enough, they will always patronize your products and services.
 Reliability- the product or service needs to function exactly as advertised whenever the customer wants to use
it reliably.
 Experience- the experience of using your products and services needs to be easy and clear for customers to
keep patronizing your business.
 Efficiency- the products/service needs to be efficient for the customer by streamlining an otherwise time-
consuming process.
 Performance- the product and service need to perform correctly so that the customers can achieve their goals.
 Compatibility- the products and services need to be compatible with the other products the customer is already
using.
 Service needs
• Empathy- each time your customers contact customer service to complain, they want
understanding and empathy from the people assisting them.
 Transparency- customers expect transparency from every company they are doing business with.
Pricing changes, service outages, and other unforeseen circumstances happen, and customers
deserve openness from the businesses they give money.
 Control- in business, customers come; first, they need to feel they’re in control of the business
interaction from start to finish and beyond. Customer empowerment shouldn’t just end with sales.
Make it easy for them to easily return products, change subscriptions, adjust terms, etc.
 Fairness- from terms of service to pricing, customers expect fairness from your company.
 Information: customers need information from the time they start interacting with your brand to
when they eventually make a purchase. Therefore, businesses should invest more in educational
blog content and regular communications so that customers can have access to the information
they need to successfully use your products and services.
 Options: Customers like variety. Therefore, they need options when they’re getting ready to make a
purchase from a company. Offer various payment options, products, services, and subscriptions to
provide them the freedom of choice.
 Accessibility: customers need to be able to access your service and support teams. This means
providing multiple channels for customer service.