Adopting an innovation requires a change of mindset. A change in mindset means leaving the world’s current way of doing things or system to an upgraded one, because an innovation must solve a problem in a more efficient and effective way than an old system.
That was the story behind the invention of the motor car industry. It was in 1886 when sir Carl Benz invented the three wheeled motor car and subsequently four wheeled coach without the usual horse driver. But, the people of that time were reluctant to adopt the new invention because they did not see the obvious reasons to do so.
Something dramatic had to take place. Bertha Carl, the wife of this inventor, had to develop a market strategy that will solve this adoption puzzle. The marketing strategies succeeded. That was how the motor car was adopted by the people of those days and the industry was born.
As at 2019, the market worth of the motor car industry is $398.58 billion, Busineswire reported.
According to Statista, the total sales and production of 2019 are 91.3m and 92m respectively. That was when the innovation of the motor car was complete, when the users accepted it and started using the value in exchange for money.
The focus of this analysis is to know the processes it takes for an innovation or invention to be complete.
What Business Experts Say About Innovation and Market
To do that we shall start by looking at the hypothesis of some business experts on the subject of innovation.
- The Third law of value states that the value of a product is determined when it undergoes a market test – When money is exchanged for the value. This was stated by Progress Ibrahim in the book “3S Rules”. Innovation =f(Market Test).
- Prof. Nduibisi Ekweke stated in the ongoing Tekedia Mini MBA that, Innovation is simply invention plus commercialization. Innovation = invention + commercialization.
- Peter Drucker states that innovation (I) and marketing (M) are what makes money (P) for a business, others are cost ©: (P=I+M-C).
These principles pointed out the fact that innovation becomes useful market friction solutions when it is accepted and used by the market. But, what are the processes of making an innovation complete?
Processes to Develop a Complete Innovation
I will explain four phases in making an innovation complete from the idea to the final product.
Business Model phase.
In order not to invent what the market does not need, it is very crucial you develop a business model for the idea that is behind the innovation. Ideas and imaginations are good but most ideas are not strategic enough to move the market forces.
So the business model is the architecture of every business. It will help you to thoroughly consider the value propositions of the proposed innovation. It will help you to build the most suitable revenue models for such innovation and it will help you to connect the innovation to the market target.
This is the second phase of an innovation. This is where with the help of the model, you designed the right framework for the proposed innovation.
This is where the engineering designs and the technical works of the innovation will come in. This is where you add layers and flesh to the idea to make it come to life but should be guided by the model.
MVP and Marketing phase
The MVP is the minimum viable product(MVP) of a new product or an innovation in the market. It is usually like a beta version of the full and complete product, with fewer features.
The essence of the MVP is to test the business model behind the innovation. It is to test if the hypothesis of the innovation is valid or invalid by knowing if the market accepts it or not through feedback from users.
To do this you need a marketing strategy for the MVP. Marketing is the process of taking a product to the people that need it even when they know and they don’t know they need it.
Complete Product phase
Let assume that the product or innovation was accepted in the MVP phase, that is there is value in the new product. It also shows that there is a market for the new product. At this phase, the product can now be launched to the market as a complete innovation, that is having complete features.
On the other hand, when the MVP fails the market test, then there is a need to tweak the innovation for another test.
To develop an innovation that has value is to develop an innovation that is accepted and used by the market and which the market is willing to exchange money for.
It is a cost effective approach that business owners,entrepreneurs and innovators should use when introducing new product lines or new business ideas into their business.