Lesson 2: Managing the Innovation Process - Comprehensive Written Report PDF

Innovation Management Lesson 2: Managing the Innovation Process Comprehensive Written Report Bustamante, Trisha C. Capistrano, Marie Francine C. Dela Cruz, Ashley Jade M. Macawile, Maria Andrea B. Magyaya, Camille Z. Mo...

Innovation Management Lesson 2: Managing the Innovation Process Comprehensive Written Report Bustamante, Trisha C. Capistrano, Marie Francine C. Dela Cruz, Ashley Jade M. Macawile, Maria Andrea B. Magyaya, Camille Z. Moreno, Lhianzhynd L. Orteza, Gessa Mae R. Prof. John Lester Depusoy October, 2024  Managing the Innovation Process Idea generation techniques Evaluating and selecting innovative ideas Implementing and commercializing innovations Objectives: Apply idea-generation techniques to identify innovative opportunities Evaluate and select innovative ideas based on established criteria Develop strategies for implementing and commercializing innovations Idea Generation Techniques Idea generation is the process of developing new, creative concepts. In the context of the innovation process, it is the first step in product development. The focus is on generating possible solutions to problems and opportunities, while also sparking new insights and concepts that drive innovation. It is the starting point for the entire innovation process. It's an essential first step because it opens up creative possibilities of opportunity. This is because it promotes innovation, provides solutions to problems, and market growth through creativity, imagination, collaboration and research in order to come up with fresh, original ideas that have potential for development into innovative products or services. Idea generation is important for identifying new opportunities because it helps people find solutions to problems they may not have thought of before. It can create value for customers by uncovering new trends, customer needs, or product improvements that businesses might not have considered. Techniques: 1. Mind Mapping - a technique for presenting information by visually showing the connections between different elements or pieces of information. These connections are typically represented with lines and arrows, providing a clear, visual way to organize and display information. (Alcor Fund, 2021) Ex. This mind map created by Randall Englund of Englund Project Management Consultancy depicts the Ten Rules of Negotiating. It shows the mindset and behaviors that are essential for this career skill and then drills down into detailed activity. 2. Brainstorming - a group creativity technique where participants contribute ideas spontaneously. It emphasizes generating a large number of ideas quickly, with no judgment or filtering during the session. (Drew, 2024) Ex. A coffee shop team including baristas, managers, and marketers might brainstorm ideas for a new seasonal drink. They would discuss customer preferences, current trends, and feedback on existing beverages. 3. SCAMPER - it stands for Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, and Reverse. Each part of the acronym helps us think and ask questions, which results in generating ideas. - ALCOR FUND (2021) Substitute – you can substitute a part of the product or process with something different to enhance its functionality or sustainability. Ex. Swap out paper towels for reusable cloth wipes to minimize waste. Combine – you can combine two or more ideas, products, or processes to create a new, integrated solution. Ex. A smartphone that integrates a camera, GPS, and music player all in one device. Adapt – you can adapt an existing product or process to make it work better in a new context or environment. Ex. Adapting shoes to be waterproof for rainy weather.  Modify – you can modify the size, shape, or other attributes of a product or process to improve its appeal or usability. Ex. Developing a mini version of a popular product, like travel-sized toiletries. Put to another use – you can put a product or process to another use by utilizing it in a different way than originally intended. Ex. Using empty jars as storage containers for kitchen ingredients or small items. Eliminate – you can eliminate unnecessary parts of a product or process to streamline operations and reduce costs. Ex. Streamlining packaging to cut down on waste and costs. Reverse or Rearrange – you can reverse or rearrange the order of parts of a product or process to create a new experience or improve efficiency. Ex. Implementing self-service kiosks in fast-food restaurants to reverse the traditional order of service. 4. Role-Playing - this technique involves acting out a situation to gain a deeper understanding of customer needs or problems, encouraging empathy and creative thinking. (Alcor Fund, 2021) Ex. In Toyota’s design process, engineers often role-play as car buyers to better understand customer pain points during the purchasing process. 5. Brainwriting - it is the variation of brainstorming where participants write down their ideas individually before sharing them with the group. This eliminates groupthink and ensures quieter members contribute. Ex. A software team wanted to come up with new features for their app, so they tried brainwriting. 6. The 5 W’s - who, what, where, when, and why are the 5 W’s. Answering these five W’s helps us achieve a very comprehensive view of the topic under discussion and it is an efficient way to come up with solutions and ideas. Ex. Suppose you want to create a new product or a service. You can do so by asking questions like; Who are we trying to help with this product? (The target market or consumers of the product) What would the product do? (Idea about the product’s innovation) Where should we start? (Prioritizing major and minor ideas) When should we launch? (Creating a realistic timeframe of product released in the market) Why would people buy it? (Necessity, Convenience, Security, Good Price) 7. Reverse Thinking - sometimes the best way to solve a problem is to look at it in another way. In this technique, it involves imagining the opposite of what you want to achieve or what you expect to happen, and then working backwards to identify the causes, consequences, and alternatives. Ex. Tesla’s Electric Cars - Instead of competing and focusing on improving the efficiency of gasoline cars, Tesla reversed the concept by eliminating gasoline altogether, focusing on electric power. 8. Storyboarding - this technique refers to the process of making storyboards to generate ideas. Storyboards use pictures, illustrations, and other information to better present the ideas. Ex. Suppose you are working on an idea for an advertisement. You can portray the different scenes in the form of a storyboard. This helps you in better visualization and you can make changes accordingly. 9. Forced Relationship - it is a technique that involves joining totally different ideas to come up with a fresh idea. Most of these ideas may not significantly change the market but some of these products can be unique and useful. Ex. Smartwatch - it is a traditional wristwatch combined with the functionality of a smartphone, resulting in a wearable device that not only tells time but also tracks fitness, displays notifications, and allows calls or messages. 10. Removing Assumptions - it is a technique where you identify and challenge the underlying assumptions or conventional norms in a given situation or problem. This technique requires us to list all the assumptions and then start removing them one by one. Ex. Usually the assumptions in school are that students must attend classes in person. But since the pandemic started they can't interact in person because of the virus. The assumption was removed by thinking of a way on how students will learn and don’t have to be physically present in class. So the idea was they create a hybrid learning model where students attend virtually, allowing access to education from anywhere in the world. Idea Evaluation Idea evaluation is as simple as assessing and analyzing different ideas or initiatives to determine which ones are worth pursuing. It’s simple, but it doesn't mean it's easy. “Idea Evaluation Process & Criteria to Select the Right Business Ideas: Ideanote Blog.” RSS. Accessed October 5, 2024. https://ideanote.io/blog/great-idea-selection. Evaluating and filtering ideas is essential for any organization aiming for success and sustainability. Here are several key reasons why this process is crucial: 1. Resource Efficiency Limited Resources: Organizations typically operate with finite resources time, money, and personnel. Evaluating ideas helps prioritize initiatives that offer the best potential return on investment. 2. It helps you improve ideas and prepare them for implementation Idea evaluation plays a crucial role in the innovation process by helping to improve and refine ideas and making them ready for implementation. 3. Risk Management Identify Potential Pitfalls: Evaluation allows organizations to identify risks associated with each idea early on, enabling proactive measures to mitigate those risks. 4. Market Responsiveness Adapting to Trends: Regularly evaluating ideas allows organizations to stay attuned to market changes and emerging trends, ensuring that they pursue the most relevant and timely opportunities. 5. Enhancing Innovation Quality Encouraging Viable Concepts: By systematically evaluating ideas, organizations can nurture high-quality, innovative concepts while discarding those that are impractical or unlikely to succeed. Refinement and Improvement: The evaluation process often leads to the enhancement of ideas, as feedback and scrutiny can help refine concepts to better meet market needs. 6. It helps you stay on brand and meet company objectives Idea evaluation is vital for keeping your brand consistent and meeting company goals. When evaluating ideas, it’s crucial to use metrics that align with what your company is trying to achieve. 7. Financial Return Financial Return: What is the potential return on investment, and how does it compare to the costs? Nieminen, Jesse. “Idea Evaluation – What Is It and How Should One Do It?” Viima, May 8, 2023. https://www.viima.com/idea-evaluation-what-is-it-and-how-should-one-do-it. Criteria for Evaluation: Feasibility Market Potential Strategic Fit Feasibility Can the idea be implemented given existing resources and capabilities? In order to determine whether a project can be effectively developed and implemented with the current technology, resources, and expertise, it is necessary to assess the technical feasibility of the idea. Here is an organized method for doing this evaluation: 1. Define the Idea Clearly Scope: Clearly outline the objectives, features, and functionalities of the idea. Define the Project by clearly outlining the project's objectives, scope, and deliverables. 2. Identify Constraints and Risks Technical Constraints: Consider limitations imposed by current technology. Potential Risks: Identify risks related to integration, scalability, and security. 3. Resource Efficiency Limited Resources: Organizations typically operate with finite resources time, money, and personnel. Evaluating ideas helps prioritize initiatives that offer the best potential return on investment. 4. Time Assessment Estimate the timeline for project completion. Determine if the project can be completed within the desired timeframe. 5. Create a Technical Feasibility Report Summary: Compile findings into a comprehensive report detailing the feasibility assessment. Recommendations: Provide recommendations on whether to proceed, pivot, or shelve the idea based on the assessment. Pedada, Sowjanya. “From Idea to Innovation: What Is a Feasibility Study in Research.” Mind the Graph Blog, August 3, 2023. https://mindthegraph.com/blog/what-is-a-feasibility-study-in-research/. Market Potential What is the potential market size, and how competitive is it? Assessing the size of the market and consumer demand is essential for each new product or company venture. Here is an organized approach to evaluate these variables: 1. Determine a target market Identify the Target Market: Understand who your potential customers are. Segment them by demographics (age, gender, income), psychographics (lifestyle, values), and geography. Scope of the Market: Determine whether you're looking at a local, national, or global market. 2. Conduct a market analysis Market Trends: Analyze current trends that may affect demand, such as technological advancements, societal shifts, or economic factors. Competitive Analysis: Examine competitors’ market share, pricing strategies, and customer feedback to gauge demand. Price Sensitivity: Assess how changes in price might impact demand through tools like price elasticity of demand. 3. Testing and Validation Pilot Studies: Conduct small-scale launches or beta tests to gather real-world data on consumer interest and behavior. Testing: Experiment with different marketing strategies or product features to see which resonates best with consumers. 4. Continuous Monitoring Feedback Loops: Implement mechanisms to continually gather consumer feedback and market trends post-launch to adjust strategies as needed. Market Reassessment: Regularly review and update your market size and demand estimates to reflect changes in consumer behavior and market conditions. How to evaluate a business idea for success in 6 steps | indeed.com. Accessed October 4, 2024. https://www.indeed.com/career-advice/career-development/business-idea-evaluation. Strategic Fit How does the idea fit with the organization’s goals and strategy? Analyzing how well an idea aligns with an organization’s goals is crucial for ensuring strategic fit. Here’s a structured approach to this analysis: 1. Evaluate the Idea’s Alignment  Relevance to Core Values: Assess whether the idea reflects the organization’s core values and culture. Does it enhance or contradict what the organization stands for? Support for Strategic Objectives: Determine how the idea contributes to achieving strategic objectives. Does it help in market expansion, product innovation, or operational efficiency? Resource Allocation: Analyze whether the idea fits within the organization’s available resources (financial, human, technological) and whether it will require reallocating resources that could detract from other priorities. 2. Risk Assessment Alignment with Risk Appetite: Evaluate whether the idea aligns with the organization’s risk tolerance. Is it a high-risk initiative that could jeopardize existing operations, or does it fit within acceptable risk parameters? Contingency Plans: Consider whether the organization is prepared to mitigate potential risks associated with implementing the idea. 3. Market and Competitive Position Competitive Advantage: Evaluate whether the idea leverages existing strengths or creates a competitive advantage in the market. Does it differentiate the organization from its competitors? Market Trends: Consider how the idea aligns with current and emerging market trends relevant to the organization’s industry. 4. Long-Term Sustainability Future Growth Potential: Analyze whether the idea supports sustainable growth in alignment with long-term goals. Does it promote innovation and adaptability? Cultural Fit: Reflect on whether the idea aligns with the organizational culture and whether it can be sustained over time without causing internal friction. 5. Feedback and Iteration Engage Stakeholders: Solicit feedback from key stakeholders to gain insights into how well the idea resonates with them and aligns with their understanding of the organization’s goals. Iterative Improvement: Be open to refining the idea based on stakeholder input to enhance alignment and strategic fit. Nieminen, Jesse. “Idea Evaluation – What Is It and How Should One Do It?” Viima, May 8, 2023. https://www.viima.com/blog/idea-evaluation-what-is-it-and-how-should-one-do-it. Tools and Techniques in selecting ideas: 1. SWOT Analysis (Sammut‐Bonnici, T., & Galea, D., 2015) A SWOT analysis evaluates the internal strengths and weaknesses, and the external opportunities and threats in an organization’s environment. The internal analysis is used to identify resources, capabilities, core competencies, and competitive advantages inherent to the organization. The external analysis identifies market opportunities and threats by looking at competitors’ resources, the industry environment, and the general environment SWOT Analysis helps ensure that the innovative ideas align with your business’s overall strategy. By understanding whether an idea can utilize the business’ strength and opportunities in the market, it will be easier to assess these ideas and make it easier to prioritize innovations that align with your core competencies and vision. 2. IDEA SCREENING MATRIX (BCIT Student Association, 2016) A screening process, a filter and a qualitative decision making tool. It is used to evaluate and prioritize your product, service or business ideas and can be used to illuminate the big issues that need to be addressed by more research and refinement. There are 4 steps in Ideas Screening Matrix: Step 1: Define the criteria against which you will evaluate your idea. While the main criteria are standard there is room to create your own that are unique to your own circumstances. Step 2: Develop a scoring system for evaluating each option. You can choose numbers, +/-, or happy and sad faces. Step 3: List all your other ideas that you want to evaluate on the left side of the page. Step 4: Go through the process of scoring each idea against your criteria. While the final scores are important, it is the process that is the most telling. By going through the process you will know which ideas have a higher likelihood of succeeding and what areas need more research or refinement. 3. CUSTOMER FEEDBACK AND MARKET RESEARCH (Pendo, 2024) Customer Feedback is the information provided about their experience with a product or service. Through surveys, interviews and product testing, businesses can assess whether an idea has a viable market. Example: In launching a new product, early feedback from consumers can assist businesses to know if the product has a potential and can meet the gaps in the existing market. 4. FEASIBILITY STUDY (Martins J, 2024) A feasibility study is a way to evaluate whether or not an idea or plan could be successful. A feasibility study evaluates the practicality of your project plan in order to judge whether or not you’re able to move forward with the project. Conducting a feasibility study can help identify whether an idea has a potential to be successful before investing significant resources. It can also help to identify potential issues and risks and provide in depth information for better decision making on the proposed ideas viability. 5. DELPHI TECHNIQUE (Likar, B., & Mrgole, U., 2013) A structured communication technique that gathers feedback from a panel of experts through multiple rounds of questionnaires. This technique helps in evaluating ideas based on expert insights and achieving an agreement on the most promising innovations. Delphi technique is composed of the following phases: First phase: problem description with a questionnaire being sent to all group members; Second phase: answers are analyzed while the members are informed on all “average or mean” answers and asked to reconsider the said answers. The members whose answers exceptionally deviated are asked to explain their opinion Third phase: answers analysis from the previous phase together with an explanation of extreme standpoints are again sent to participants who are asked to reconsider and send an answer. If the answers remain inconsistent, the phases may be repeated. The technique proves to be one of the most widely spread techniques of forecasting and is thus appropriate for assessing inventive and development solutions where the effects of eventual innovation shall be long-term and hard to forecast (for example potential market success of mobile telephone sets with a possibility of picture transmission). Application (Pereira, Daniel., 2023) Nestlé, one of the largest food and beverage companies globally, is committed to health and nutrition. As part of its strategy to innovate and meet evolving consumer demands, Nestlé uses both SWOT analysis and Delphi technique to guide its product development process, particularly for new nutritional products aimed at specific demographics (e.g., infants, elderly, athletes). 1. SWOT Analysis When considering the launch of a new line of nutritional supplements for the elderly, Nestlé conducts a SWOT analysis:  Strengths: ○ Largest Food Company in the World. ○ High Brand Value ○ Extensive research and development capabilities focused on health and wellness. Weaknesses: ○ Complex Organizational Structure ○ High Competition in the nutritional supplement market Opportunities: ○ Diversity of health-based products ○ Lifestyle changes and growing awareness of nutrition's role in healthy aging. Threats: ○ Intense competition across categories ○ Public perception of health concerns and dependency on commodity prices 2. Delphi Technique After the SWOT analysis, in order to refine the product concepts and ensure market alignment, Nestlé can utilize the Delphi technique. This involves engaging a panel of experts, including: Nutritionists and dietitians Healthcare professionals Market researchers Process: PHASE 1: Experts are asked to evaluate the proposed nutritional supplement formulations, features, and packaging. They will then provide insights on ingredients, potential health benefits, and consumer preferences. PHASE 2: The feedback is summarized and shared with the panel, allowing experts to reassess their initial opinions based on the collective insights. PHASE 3: The process continues until an agreement is reached on the most beneficial features and formulations for the target demographic. Application Using the SWOT analysis and the Delphi technique helps Nestlé to develop a well-informed product line align to the nutritional needs of the elderly: The SWOT analysis identifies the market opportunities and Nestlé’s capacity to meet them. The Delphi technique validates specific product formulations, such as including essential vitamins and minerals for aging adults. Implementing and Commercializing Innovations Implementation Strategy is the act of executing new ideas, products or processes to reach the desired goal or set of goals. This strategy includes elements such as setting clear objectives, allocating resources, identifying potential risks, and establishing processes for monitoring progress. Steps ○ Set clear goals - define what you aim in your business to achieve through innovation, whether it's improving existing products, developing new ones, or enhancing processes. ○ Gather and Analyze Information - start collecting relevant data from multiple sources such as customer feedback, industry reports, market surveys, and competitor analysis. This helps you gain valuable insights into consumer behavior, emerging trends, and potential gaps in the market. ○ Formulate a Strategy - based on the data collected, make a structured plan that provides a clear roadmap, helping to allocate resources effectively, manage timelines, and anticipate potential challenges. By considering all these aspects, the formulated strategy will serve as a comprehensive guide that facilitates the successful implementation of the innovation initiative. ○ Implement your Strategy - this is the action stage of the strategic management process. If the overall strategy does not work with the business' current structure, a new structure should be installed at the beginning of this stage. It also facilitates communication inside the organization and must be clear of their responsibilities, duties and how that fits in with the overall goal. ○ Evaluate and Monitor - strategy evaluation and control actions involve measuring performance, regularly reviewing internal and external factors, and implementing corrective actions as needed. By continuously monitoring these factors, you can effectively respond to significant changes in your business environment. Prototyping and Testing - Prototyping is the act of creating a simplified, tangible representation of a product or feature to explore its design, functionality, and user experience. Testing, on the other hand, involves gathering user feedback and evaluating the prototype's effectiveness. By focusing on prototyping and testing, teams can adopt a user-centered approach to design. This means they can gather feedback from actual users, ensuring that the final product meets their needs and preferences. Engaging users in the testing phase allows teams to understand how people interact with their product, leading to improvements that enhance user experience and satisfaction. Commercialization is the process of bringing new products or services to market. Once a product has been designed, tested, and created, commercialization ensures its success in the market. It involves a strong marketing strategy, as well as establishing robust distribution and production channels. Successful commercialization requires careful planning, market research, business analysis, and ongoing customer support and feedback. Typically, commercialization occurs after a small business has grown and scaled its operations and reached levels that allow it to successfully reach a larger market. For example, if a small bakery is known for its cinnamon rolls and has sold them with great success, it can commercialize its products by selling the packaged cinnamon rolls to local grocery stores, where others can buy the pastries and the bakery can increase its sales by multiple factors. (Kenton, W, 2020) Commercialization usually occurs after a small business has grown and scaled its operations and reached levels that allow it to successfully reach a larger market. It happens when a business is ready to expand its reach to a larger market. For example, a small candle-making business initially sells locally at craft fairs and online. After building a strong local customer base, they scale up production, partner with larger retailers, and start selling their candles nationwide. This transition to a broader market is commercialization. Commercialization is the process that allows businesses to raise and solve problems of new products and bring them to the market. It helps companies decide when to launch a certain product by reviewing various factors influencing or delaying a launch. There might be multiple factors affecting a product, like unfavorable market conditions or inquiries requiring some changes. (SendPulse, 2024) Companies create new products and services to meet unanswered customer demands. They make products that can solve many consumers’ problems and decide on their feasibility, costs, and ways to roll out commercialization strategies. Commercialization enables business owners to develop products with great benefits that people will admire. More advantages of commercialization: (North, J., 2023) Better choices of products and services that customers can obtain; Increased Return on Investment (ROI); Efficient production process; Thought-out decisions; Reduced public expenses. Steps in Creating a Commercialization Strategy 1. Define Clear Objectives Start by establishing specific, measurable goals. Whether it's capturing a set market share, hitting a revenue target, or building brand recognition, clear objectives guide decision-making and strategy. Ex: A small bookstore aims to sell 500 books in the next three months by offering weekend discounts and organizing local author events. 2. Understand Your Market Conduct thorough research on your target audience. Identify who they are, their needs, and how your product meets those needs. This knowledge is crucial for crafting product positioning and messaging that resonates with your market segments. Ex: A skincare brand identifies that their target market consists of women aged 25-35 who are concerned about sensitive skin. They position their product as hypoallergenic and gentle for daily use. 3. Pricing and Profit Margins Develop a pricing strategy that reflects your product's value, accounts for competition and costs, and aligns with your profit goals. The right price can affect both customer perception and demand. Ex: A handmade soap business prices each bar at $5. They ensure it costs them $2 to make, leaving a $3 profit on each sale. 4. Distribution Channels Choose the best ways to deliver your product to customers. This could include online platforms, retail outlets, or direct sales, depending on what aligns best with your target audience's preferences. Ex: A small clothing brand sells their shirts online because their customers prefer shopping from home. 5. Promotion and Marketing Plan how to raise awareness and drive interest in your product. Tailored marketing campaigns that speak to your audience are key to generating engagement and converting leads into sales. Ex: A new fitness app launches a social media campaign targeting young professionals, offering a free month of premium access to generate interest and boost sign-ups. 6. Feedback and Iteration After launching, gather customer feedback to understand what’s working and where there’s room for improvement. This continuous process of refinement ensures that your product stays competitive and aligned with customer needs. Ex: After launching a new smartwatch, a tech company receives feedback about battery life issues. They quickly release an update to improve battery performance, addressing customer concerns and boosting satisfaction. The Three Tiers of Commercialization The Ideation Phase - This is where the company attempts to produce innovative products and services that address anticipated customer needs; this marketing strategy provides significant benefits at a reasonable price. Here, the four Ps—product, price, place, and promotion—are also integrated. - Product - here, the business must be an expert in their product and know who needs it, why, and how it can outperform products from competing businesses. - Price - price is the cost that a customer is willing to pay for a product, and it depends on a number of considerations such as production expenses, retail markup, competitors' prices, season discounts, and actual and imagined value. Pricing can be lowered to draw in more clients or raised to suggest exclusivity or luxury. Marketers must also determine when discounts are acceptable because they have the power to increase or decrease a product's attraction. - Place - place refers to the product's targeted selling location, including online and physical shops, as well as the way it will be presented. - Promotion - this is how they make people buy their products. The Business Process - The second phase focuses on the business side of things. When a new product is introduced to the market, it is with the aim of improving the business. For this to happen, it’s vital that proper strategies and campaigns are put in place for marketing. Every business needs to make sure that they are thorough in their business processes. This is in order to correctly engage their target market. The Stakeholder Stage  - It is typically bundled with thinking through who the target audiences and stakeholders for a commercialized product or service are. For commercialization to truly succeed, a company must satisfy both its customer and stakeholder needs. Getting stakeholders into account is crucial when introducing a new product to the mainstream market or broader market, as they can influence the products' fortunes. Successful commercialization strategy isn’t just about launching a product, it’s about planning for its sustained success. With a well-thought-out strategy, you enhance your chances of gaining a strong foothold in the market and achieving long-term growth. Challenges and Solutions Implementing innovation often presents a range of challenges, from resistance to change to resource constraints. How can we identify effective strategies to overcome these obstacles and foster a culture that embraces new ideas? Fear is a complex and personal topic—what intimidates or paralyzes some can motivate others to act boldly - McKinsey & Company (2022) What do business owners usually fear? Morris (2022) found that the three concerns that hinder business innovation the most are fear of criticism, fear of uncertainty, and fear of a negative impact on one's career. Furthermore, a Chief Operating Officer in a company stated that the fear of losing face often leads to the dismissal of good ideas without consideration. This means that they fear that they will do the wrong thing, leading their business to fail, which blocks them from a creative and innovative path. All of these are because people are psychologically and physiologically attracted to stability over improvement. People focus and emphasize the outcome of innovation. They don't consider how many unsuccessful projects and products you have to try until you succeed. Failure should be allowed in the working culture as long as one can learn from it, move on to become better, and eventually succeed. Innovation can and should be fueled by failure. James Dyson, the owner of the Dyson Company, which manufactures a wide range of home goods, including air purifiers, hair dryers, and vacuum cleaners, has a lot of failures. He said that it took more than 15 years to design the first vacuum cleaner, 5,127 prototypes were made, and each one brought him one step closer to success. Another challenge is having issues with allocating resources. Human wants and needs are unlimited but are limited when it comes to our resources—time, money, personnel, and raw materials are limited—thus we face scarcity, so we need to allocate those that are limited properly. The goal of allocating those resources is to effectively maximize every resource out there for an output and to minimize the waste. How can this be done efficiently? Based on the study by Rachel Lebeaux (2022) there are five (5) steps in-order to properly allocate the limited resources: 1. Plan and map out first the project 2. Identify the team members that have conflicting commitments or are balancing multiple projects that might slow down the project and impact their availability. 3. Schedule tasks and develop project timelines. 4. Track the performance of the team members and monitor how effectively they complete tasks. 5. Lastly, the success of the project is evaluated. Having something new to offer to the market is always a challenge, but new things are usually easily embraced and positively taken. Everybody wants to try something new or have the latest products on the market. It’s exciting and people are usually open to trying new things. This is because they hope they will be better than the old ones and will positively change their lives. But according to Clay Christensen, a professor at Harvard Business School, nearly 30,000 new products are introduced each year, and 95% fail. This results from a lack of market research; instead of determining the product's value and identifying the target market, they merely manufacture and distribute products. Many people have not yet realized the importance of doing market research. This can be useful at every stage of the process and from the beginning of a business as it can determine the wants and needs of customers, invent new goods and services, and—most importantly—make informed decisions. One example of this is Blockbuster and Netflix. Blockbuster is a physical store where customers go to browse and rent movies. They only had a limited selection of movies and shows because they had to stock each of them physically. One thing they failed to do to stay competitive was conduct market research to find out what more people might need, something Netflix had already done. They created an app that can be downloaded onto smartphones to browse and view movies effortlessly anytime and anywhere you like, instead of going to a store. In 2010, Blockbuster filed for bankruptcy as they forgot that latent needs existed. Entrepreneurs should fill those gaps in the market by creating products that consumers need but are unaware they need—called latent needs. Lastly, adopting emerging technologies has also been a challenge. Innovating and adopting emerging technology is practically mandatory for any company, regardless of its segment of activity, due to systems and technology now supporting the business, and the ways companies sell their products or provide services to their customers. (Cavallari, 2020) Many reasons hinder the adoption of technology by business owners. Most of them are caused by fear, and some because of the culture and misalignment between “acquiring technology” versus “technology adoption.” Businesses cannot adapt to developing technology because they are stuck in the idea that the ways that were done in the past should and can be done again. As a result, they are unwilling to try new things. They always believe that their method of operation is the more effective one. Additionally, they typically see technology as a cost rather than a benefit. Some people have it but are unsure of how to use it, while others won't even give it a shot. This is a result of a misperception regarding adoption and acquiring. Adopting is to accept and make use of something, whereas acquiring is to buy or purchase it. They simply buy it without having the resources to learn about it and give themselves time to do so, and accept its capabilities. Technology is important, particularly for businesses. It can offer fast, wider, and more efficient means of communication. It contributes to the improvement of systems, goods, or services' efficiency. Additionally, it enables companies to accomplish more in less time and money. Additionally, the majority of workers are motivated to embrace modern technology because they think doing so will enable them to provide the best results. To be able to conquer those things that hinder firms to adopt emerging technologies, here are the three (3) key areas that they need to focus based on Nicola Graham: Good Mindset. The success of technology adoption relies on the mindset of the people. Be Understanding. Willingness to innovate is closely linked to understanding. Give Value. Undergoing technology adoption will undoubtedly take time, energy, and money. Innovation is never without its challenges, but by addressing obstacles with thoughtful solutions, we can create an environment that not only welcomes change but thrives on it. Let's commit to taking these insights forward to turn challenges into opportunities for growth. References ALCOR FUND. (2021, August 13). Idea Generation - Techniques, Tools, Examples, Sources And Activities. Retrieved from https://alcorfund.com/insight/idea-generation-2/ BCIT Student Association. (2016). The Idea Evaluation Matrix. https://www.bcitsa.ca/beaboss/wp-content/uploads/sites/6/2016/09/The-Idea-Evaluation- Matrix. Beram, S. (2022, November 26). Building What Customers Need: The Ultimate Recipe - Product Coalition. Medium; Product Coalition. https://productcoalition.com/building-what-customers-need-the-ultimate-recipe-ad664a79 8f6c Campbell, K. D. 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