UNIT I DESIGN THINKING PRINCIPLES 9

DESIGN THINKING PRINCIPLES

A human-centered innovation strategy known as “design thinking” integrates the demands of

people, the potential of technology, and the conditions necessary for successful company
operations.
Design thinking is a process that can be applied to a wide range of problems: working with
organizations or individuals, solving intractable social issues or creating new products, coming up
with strategies for competitive advantage, or managing day-to-day operations more effectively.
Design thinking is a human-centered approach to innovation. It combines the best of two worlds:
the humanities, where we find empathy and creativity, and technology, from which it borrows
rapid prototyping and testing.Design thinking sees problems as opportunities. It’s a way of solving
them through fast iteration, prototyping, and testing your ideas before deciding on one final
solution.

Process of Design Thinking

● Identify the problem

● Discover the need
● Create solutions
● Test the solution
● Evaluate the solution
Principle 1 — Empathize with your users
Empathy is the ability to understand and share the feelings of another. It’s a fundamental part of
human relationships, and it’s critical for design thinking. Empathy does not mean sympathy or
feeling sorry for someone, but imagining what others might want or need in an attempt to see
things from their perspective.An excellent way to practice empathy is by observing people in their
natural environments—

Principle 2 — Define a Meaningful and actionable problem statement

This principle is about defining and refining the problem you are trying to solve. It’s essential to
determine a meaningful problem statement before you start solving it because otherwise, you may
find yourself solving the wrong thing or spending time on tasks that don’t contribute toward your
ultimate goal.
Principle 3 — Ideate by challenging assumptions and creating ideas for innovative solutions
In the design thinking process, you will challenge assumptions to look at your problem from
different perspectives. You will try to uncover latent needs and develop new ideas for innovative
solutions. The goal is not merely to create a solution but also to generate several possible solutions
that can be tested against each other to learn what works best. This is why we don’t talk about
defining problems; instead, we insist on asking better questions to avoid getting trapped in what
was already known or assumed.

Principle 4 — Prototype to start creating solutions

Prototyping is the process of creating and testing a model of your solution. It’s a way to test the
design, make sure it works as intended, and get feedback from users. Prototyping helps you
understand if your concept is usable and feasible before spending too much time building
something that may not be usable or feasible.

Prototypes should
● be cheap to create
● good enough for people to understand
● show how something will work without needing lots of explanation;
Types of Prototypes may be:.
● paper prototypes
● digital prototypes using software such as Adobe XD or Sketch.

Principle 5: Test those solutions in the real world.

Many designers and developers feel that when they have a prototype, it’s ready for presentation to
users. However, there are many different ways to test your solution with real users.

This will allow for feedback from others who may not necessarily be familiar with how things
work behind the scenes on computers but do understand what would make sense in terms of
functionality and usability once they see something tangible like a mockup rather than just words
describing ideas.”

Human-centered design
Human-centered design is a problem-solving technique that puts real people at the center of the
development process, enabling the creation of products and services that resonate and are tailored
.
The goal of Human-centered design is to
● keep users’ wants,
● pain points
● preferences
THE PHASES OF HUMAN-CENTERED DESIGN

Human-centered design stages:

1. Clarify
2. Ideate
3. Develop
4. Implement

Here’s what each step of the process means and how you can implement it to create products and
services people love.
1. Clarify
This first phase is dedicated to collecting data and observing your customers to clarify the problem
and how you might solve it. Rather than develop products based on assumptions, you conduct user
research and assess customer needs to determine what prospective buyers want.
The clarify phase requires empathy—the capability of understanding another person’s
experiences and emotions.
During this phase, you want to discover customers’ pain points, :
● Explicit: These are pain points users can describe; they’re aware of what frustrates them
about their current experience.
● Latent: These are pain points users can’t describe and might not even know exist.
Ask questions such as:
● What challenge were you trying to solve when you bought this product?
● What other options did you consider when making your decision?
● What made you choose this product over the alternatives?

2. Ideate
During this stage, you can apply different design thinking tools, such as systematic inventive
thinking (SIT) or brainstorming, to overcome cognitive fixedness—a mindset in which you
consciously or unconsciously assume there’s only one way to interpret or approach a situation.
3. Develop
The development phase is when you combine and critique the ideas you’ve brainstormed to create
a range of possible solutions. By combining and evaluating your ideas,it can better meet users’
needs and determine what they want to move into prototyping to reduce costs, save time, and
increase your final product’s quality.
Three characteristics of human-centered design that are vital to consider when critiquing
ideas are desirability, feasibility, and viability.
● Desirability: Does this innovation fulfill user needs, and is there a market for it?
● Feasibility: Is this functionally possible? Does the organization have the resources to
produce this innovation? Are there any legal, economic, or technological barriers?
● Viability: Is this innovation sustainable? Can the company continue to produce or
deliver this product profitably over time?
4. Implement
The final phase of the process is implementation. During this stage, it’s crucial to communicate
your innovation’s value to internal and external stakeholders, including colleagues and consumers,
to bring it to market successfully, encourage adoption, and maintain growth.
In the implementation phase, take time to reflect on your organization’s culture and assess group
dynamics. Is your team empowered to develop and iterate on user-focused solutions? You can’t
continue creating innovative solutions without the right culture.
It’s important to note that your work isn’t over once you reach the final phase. Customers’ wants
and needs will continue to evolve. Your goal is to adapt to meet them. Keeping humans at the
center of the development process will ensure you’re continuously innovating and achieving
product-market fit.
Human-centered design has four principles:
1. People-centered: Focus on people and their context in order to create things that are
appropriate for them. Participatory design ensures user involvement in the process.
2. Understand and solve the right problems, the root problems: Understand and solve the right
problem, the root causes, the underlying fundamental issues. Otherwise, the symptoms will
just keep returning.
3. Everything is a system: Think of everything as a system of interconnected parts.
4. Small and simple interventions: Do iterative work and don't rush to a solution. Try small,
simple interventions and learn from them one by one, and slowly your results will get
bigger and better. Continually prototype, test and refine your proposals to make sure that
your small solutions truly meet the needs of the people you focus on.
Understanding the Innovation process, discovering areas of opportunity

What is Innovation?
Innovation involves the methodical approach to creating and introducing groundbreaking products
and services to gain acceptance from customers.At its core, innovation is the process of utilizing
digital technologies and creative thinking to fundamentally change how organizations operate,
enhance value creation, and interact with their stakeholders.

Why Innovation is Important for Business?

Innovation is crucial for business success as it drives growth, enhances competitiveness, and
ensures long-term sustainability.
By constantly adapting to changing market dynamics, technology, and customer needs, innovation
enables businesses to stay relevant, differentiate themselves, and seize new opportunities.
Embracing innovation fosters creativity, efficiency, and resilience, positioning a business to
navigate challenges and emerge as a leader in its industry.

What is Innovation Process

The innovation process definition is an efficient and well-managed systematic series of strategic
steps tailored and characterized by the application of creative and novel approaches to align with
a company’s structure and aspirations in innovation and achieve specific organizational goals
within a defined timeline.
It’s about introducing groundbreaking methods, and diverse sources of supply, exploring new
markets, creating innovative goods, and reshaping organizational structures within an industry.
A successful innovation process is the key to staying ahead in the dynamic landscape of business.
It involves translating knowledge into tangible products, solutions, or services that resonate in the
market.
Why is the Innovation Process Important?
The innovation process is not a one-time project but an ongoing journey.
1) Strategic Problem Solving:
The innovation process serves as a powerful tool for strategic problem-solving by identifying and
addressing challenges within the business ecosystem. Companies, guided by a customer-centric
approach and a deep understanding of customers’ jobs to be done, can proactively enhance their
operations. This results in improved customer satisfaction as the products or services align more
closely with the specific needs and desires of the customers. The outcome is not just increased
sales but sustained revenue growth, as the organization consistently meets and exceeds the
expectations tied to the fundamental “jobs” that customers are trying to accomplish.

2) Global Market Maximization:

The innovation process becomes instrumental in helping businesses not only tap into new markets
but also identify opportunities and leverage emerging trends worldwide. Adopting a tailored
innovation strategy allows companies to not just adapt their products and services but proactively
identify and capitalize on diverse cultural and market demands. This approach not only fosters
international success but positions the organization as a proactive player in identifying and seizing
opportunities on a global scale.
3) Agility Through Change:
Change is an inevitable constant in the business landscape. A robust innovation process empowers
businesses to not only adapt to change but thrive in dynamic environments. By embracing change
through innovation, organizations enhance their resilience and agility, ensuring they remain
adaptable in the face of evolving market trends.
4) Optimized Workplace Dynamics:
The innovation process plays a pivotal role in navigating the evolving dynamics of the workplace.
As demographics shift and employee expectations change, innovation ensures that businesses can
create adaptive work environments, attracting and retaining top talent while fostering a
culture of continuous improvement.
5) Customer-Centric Evolution:
Understanding and responding to customer preferences are central to a business’s success. The
innovation process allows companies to develop customer-centric solutions, aligning products and
services with evolving preferences. This customer-focused approach not only satisfies current
needs but anticipates future demands, ensuring sustained relevance.
6) Competitive Edge Retention:
Retaining a competitive edge requires more than routine operations. A well-crafted innovation
process enables companies to stand out by developing unique digital business models, making
strategic moves, and continuously evolving to meet and exceed customer expectations.
7) Future-Proofing Strategies:
Innovation is an investment in the future. Companies with a robust innovation process are better
equipped to navigate uncertainties, foresee industry trends, and proactively shape their destinies.
This forward-looking approach ensures long-term sustainability and positions organizations as
leaders in their respective fields.
8) Transformation of Ideas into Value:
At its core, the innovation process is the alchemy that turns raw ideas into tangible value, crafting
a compelling value proposition. It’s the systematic journey from concept to reality, ensuring that
creative sparks translate into products, services, or solutions that resonate in the market.
9) Enhanced Efficiency and Effectiveness:
An innovation process isn’t just about introducing something new; it’s about doing things better.
It streamlines operations, enhances efficiency, and ensures that every facet of the organization is
optimized for success.
10) Cultivation of a Progressive Innovation Culture:
Embracing innovation fosters a culture of progress within an organization. Innovation culture
encourages a mindset of continuous improvement, where employees are empowered to contribute
ideas, experiment with new approaches, and actively participate in the organization’s growth
journey.
11) Future-Proofing:
Innovation isn’t just about the present; it’s an investment in the future. Organizations with a well-
established innovation process are better positioned to navigate uncertainties, foresee trends, and
proactively shape their destiny.

Steps of the Innovation Process

Innovation Process Steps

Understanding the steps of the innovation process is key to successful implementation. Let’s break
down the process into its essential components:
Step 1: Innovative Idea Generation
Embarking on the innovation journey initiates a quest for innovative potential through robust idea
generation. This pivotal step involves actively seeking out new and groundbreaking ideas that have
the potential to redefine products, services, or processes.
Idea Generation Techniques:
Creativity Techniques:
Employing structured creativity techniques stimulates ideation. These methods, ranging from
brainstorming sessions to mind mapping, encourage teams to think outside the box and explore
unconventional possibilities.
Design Thinking:
Rooted in empathy and a human-centric approach, design thinking is a powerful technique for
innovative idea generation. It involves understanding user needs, ideating solutions, and
prototyping to address real-world challenges.

Step 2: Advocacy Screening and Experimentation

The second crucial phase in the innovation process is advocacy screening and experimentation.
Following the inception of innovative ideas, this stage involves an in-depth analysis to gather
comprehensive information for evaluating feasibility. The goal is to scrutinize the potential
challenges and benefits of a business idea, enabling informed decisions about its future. This phase
plays a pivotal role in shaping the destiny of an innovation by subjecting it to rigorous scrutiny.
Thorough analysis and experimentation provide valuable insights, identifying potential roadblocks
and identifing opportunities for refinement.
One of the critical components is the feasibility analysis, assessing the practicality of the proposed
innovation within the existing operational framework. Evaluating risks and benefits helps
understand the innovation’s potential impact, and establishing a decision-making framework
guides future development. Aligning the innovation with the organizational culture ensures
seamless integration. Crucially, this phase involves meticulously analysing customer
requirements, and validating the innovation against real-world demands.
Example : Implementing best practices for business growth, such as fostering open communication
and encouraging cross-functional collaboration, contributes to building a resilient innovation
culture.
Step 3: Develop a Solution
This stage involves the meticulous development of solutions, including the construction of
prototypes and the execution of various tests. Beyond conceptual and laboratory assessments, real-
world market tests are conducted to garner firsthand insights and comprehensive feedback.
Throughout this phase, the emphasis is on refining the solution, addressing any identified
shortcomings, and ensuring its readiness for implementation. Prototypes undergo scrutiny, and
iterative testing ensures that the final product aligns seamlessly with customer expectations. Step
4: Commercialization and Marketing
This stage is dedicated to creating market value for the developed idea, product, or service by
focusing on its real-world impact. A key element within this step involves the meticulous
establishment of specifications for the given idea, ensuring clarity and alignment with market
needs.
Commercialization is a multifaceted endeavour that extends beyond the conceptual realm. It
involves the physical manifestation of the product, making it available to potential customers
through mass production, procurement, and logistics—all guided by well-defined concepts.
Successful commercialization hinges on effective strategies that navigate the intricate landscape
of consumer demand, competition, and market dynamics.
As the innovation transitions from organizational development to the commercial realm, the fourth
step ensures a seamless integration of the product into the market, setting the stage for widespread
adoption and success.
Marketing plays a central role in this phase, encompassing activities that drive awareness,
engagement, and adoption. Crafting compelling narratives, establishing brand presence, and
strategically positioning the product are integral components of a robust marketing strategy. The
goal is to not only introduce the innovation to the market but also to generate enthusiasm, trust,
and a compelling value proposition.
Step 5: Diffusion and Implementation
The focus shifts from the internal development and commercialization stages to the broader
landscape of market acceptance and integration.
Diffusion, in this context, refers to the spread and acceptance of the company’s innovative idea
within the market. It is a critical phase where the organization gauges the extent to which the
innovation resonates with its target audience. Understanding the diffusion process involves
identifying the early adopters, assessing market trends, and recognizing the factors that contribute
to the widespread acceptance of the innovation.
Implementation, on the other hand, involves translating the innovative concept into tangible, real-
world applications. It goes beyond the theoretical realm and delves into the practical aspects of
integrating innovation into everyday processes and practices. This step is pivotal for assessing the
impact of the innovation on customer needs, setting benchmarks for success metrics, and receiving
valuable feedback that stimulates continuous improvement.
After successfully implementing an idea, it is crucial to conduct regular reviews to assess whether
the new solution continues to address the initial problem effectively and has gained widespread
adoption throughout the entire organization. Additionally, maintaining a continuous feedback loop
is essential to gather insights into the ongoing performance and user experiences.
To ensure sustained success, ongoing tracking of the initiative’s performance against its initial Key
Performance Indicators (KPIs) is imperative. This involves evaluating whether the solution still
aligns with business goals, customer needs, and market dynamics. Lessons learned during the
implementation and adoption phases should be documented, serving as valuable inputs for future
innovation endeavours.
The process of collecting feedback, analyzing performance metrics, and documenting lessons
learned contributes to a cycle of continuous improvement. This iterative approach enables
organizations to refine their strategies, address challenges, and adapt to evolving conditions,
fostering a dynamic and responsive innovation culture. Regular assessments and adjustments
based on feedback ensure that implemented ideas remain relevant and continue to deliver value
over time.
5 Essential Pre-Arranging Steps for the Innovation Process:
In the dynamic realm of innovation, strategic planning is pivotal for success. Before embarking on
the innovation process journey, consider these five essential pre-arranging steps:
1) Define the Concept of Innovation:
Clearly articulate what innovation means for your organization. Establish a shared understanding
of innovation, encompassing both incremental improvements and groundbreaking advancements.
This inclusive definition lays the foundation for a robust innovation culture that thrives on
continuous improvement and forward-thinking strategies.
2) Set Clear Goals:
Define specific, measurable, and achievable goals for your innovation endeavours. Whether it’s
enhancing products, entering new markets, or optimizing processes, having clear objectives guides
your innovation strategy. These goals serve as benchmarks, ensuring your innovation efforts align
with broader organizational objectives.
3) Build a Diverse Team:
Assemble a team with a diverse range of skills, backgrounds, and perspectives. Diversity fosters
creativity and brings a multitude of insights, enriching the ideation and problem-solving processes.
An inclusive team culture encourages a broader spectrum of ideas, driving innovation from
multiple angles.
4) Allocate Adequate Budget:
Ensure financial commitment aligns with your innovation ambitions. Allocate sufficient resources
to support research, development, and implementation, recognizing that innovation often requires
investment in technology, talent, and infrastructure. A well-defined budgetary framework ensures
that innovation initiatives have the necessary resources to thrive.
5) Form Cross-Functional Teams:
Break down silos by creating cross-functional teams. Collaboration across departments ensures a
holistic approach to innovation, leveraging varied expertise and accelerating the development and
implementation phases. This collaborative environment fosters a culture where different
perspectives converge, leading to comprehensive and effective innovation outcomes.

Innovation Process Examples

1) Business Process Reengineering (BPR): Ford Motor Company
In the early 1980s, Ford Motor Company faced challenges like inefficiencies and high costs. To
address these issues, CEO Donald Petersen initiated a transformative Business Process
Reengineering (BPR) project.
Ford’s BPR involved a radical redesign of processes, flattening the organizational structure, and
focusing on team-oriented approaches. Manufacturing processes were streamlined to reduce waste,
minimize inventory, and enhance efficiency using just-in-time principles.
Employee involvement was central to Ford’s BPR. Teams were empowered to identify and
implement improvements, fostering a culture of ownership. Technology integration, including
CAD/CAM systems, enhanced product development and manufacturing precision.
The outcomes were substantial cost reductions, increased competitiveness, and improved product
quality. Ford’s BPR serves as a landmark case in organizational transformation, showcasing the
power of strategic process reengineering, employee engagement, and technology adoption.
2) Lean Manufacturing: Toyota Production System (TPS)
The Toyota Production System (TPS) is a prime example of lean manufacturing, focusing on
efficiency, waste reduction, and continuous improvement. Here’s a brief overview of how TPS
embodies an innovation process:
1. Just-In-Time (JIT) Production:
Toyota developed JIT to minimize inventory and produce only what is needed,
fostering cost savings and improved efficiency.
2. Kaizen (Continuous Improvement):
The concept involves continuous improvement at all levels, with employees
encouraged to provide suggestions for refinement.
3. Jidoka (Autonomation):
Jidoka automates processes, enabling machines to detect and address issues,
ensuring high-quality production.
4. Andon System:
Toyota’s Andon system allows workers to stop the production line if a quality
issue arises, providing immediate feedback for quick resolution.
5. Kanban System:
Originating as a visual signaling system, Kanban efficiently manages production
and inventory levels, scaling up across different processes.
6. Poka-Yoke (Error Proofing):
Toyota focuses on preventing errors in the manufacturing process by
introducing foolproofing devices or processes.
7. Respect for People:
Emphasizing the importance of respecting and engaging employees in the
improvement process, Toyota regularly assesses workplace culture for ongoing
innovation.
3) Six Sigma: General Electric (GE)
Six Sigma is a set of techniques and tools for process improvement that seeks to improve the
quality of process outputs by identifying and removing the causes of defects and variability in
manufacturing and business processes. General Electric (GE) is often cited as one of the early
adopters and prominent users of Six Sigma methodologies. Here’s how Six Sigma was
implemented at GE:
1. Leadership Commitment:
GE’s leadership, under the guidance of then-CEO Jack Welch, embraced Six
Sigma as a fundamental part of the company’s culture. Welch is known for
making Six Sigma a central focus during his tenure.
2. Training and Certification:
 GE invested heavily in training its employees at various levels in Six Sigma
methodologies. This included different belt levels such as Green Belts, Black
Belts, and Master Black Belts, each representing a different level of expertise in
applying Six Sigma tools.
3. Project Selection:
GE focused on projects that would have a significant impact on business
processes and outcomes. These projects were carefully selected based on their
alignment with organizational goals and potential for process improvement.
4. DMAIC Methodology:
GE applied the DMAIC (Define, Measure, Analyze, Improve, Control)
methodology, a core component of Six Sigma, to structure and guide its process
improvement projects. This systematic approach helped teams identify and
address inefficiencies and defects.
5. Data-Driven Decision Making:
Six Sigma emphasizes the importance of data in decision-making. GE utilized
statistical tools and data analysis to identify root causes of problems, measure
process performance, and make informed decisions for improvement.
6. Results and Impact:
GE achieved significant improvements in quality, efficiency, and customer
satisfaction through the implementation of Six Sigma. The approach contributed
to substantial cost savings and enhanced competitiveness for the company.
7. Cultural Transformation:
The adoption of Six Sigma at GE went beyond just a set of tools; it represented
a cultural transformation. Employees across the organization were encouraged
to think critically about processes and continuously seek ways to improve them.

How to Create Innovation Management Processes

Creating an effective innovation management process involves several key steps to foster an
innovation culture and streamline the journey from idea generation to implementation. Here’s a
comprehensive guide:
Define Innovation Goals and Objectives:
Clearly articulate the purpose of innovation within your organization.
Align innovation goals with overall business objectives and strategy.
Specify the types of innovation you want to encourage, whether incremental
improvements or disruptive breakthroughs.
Establish an Innovation Team:
Form a dedicated innovation team or designate individuals responsible for
managing the innovation process.
Ensure diversity in skills, backgrounds, and perspectives within the team to
promote varied insights.
Create an Idea Management System:
Implement an idea management system or use innovation management
software to capture, evaluate, and track ideas.
Foster a transparent and collaborative platform for idea sharing and feedback.
Encourage Idea Generation:
Cultivate a culture that encourages and rewards creative thinking.
 Provide tools and techniques for idea generation, such as brainstorming
sessions, workshops, and hackathons.
Evaluate and Prioritize Ideas:
Regularly review and evaluate collected ideas with a cross-functional team.
Establish criteria for evaluating ideas based on alignment with goals,
feasibility, and potential impact.
Prioritize ideas that align with strategic objectives and have high innovation
potential.
Proof-of-Concept or Pilot:
Develop proof-of-concept or run pilot projects for selected ideas to test
feasibility.
Use this stage to gather feedback, identify challenges, and refine concepts
before full-scale implementation.
Allocate Resources:
Allocate adequate resources, including budget, technology, and talent, to
support innovation initiatives.
Ensure that teams have the necessary tools and resources to implement
innovative ideas effectively.
Cross-Functional Collaboration:
Promote cross-functional collaboration to break down silos and leverage
diverse expertise.
Encourage collaboration between departments and teams throughout the
innovation process.
Implement and Monitor:
Roll out fully developed ideas to the entire organization.
Monitor and track the implementation progress, ensuring that the innovation
aligns with initial goals and objectives.
Collect Feedback and Iterate:
Continuously collect feedback on implemented innovations.
Use feedback to make necessary adjustments, improvements, or pivots to
enhance the innovation’s effectiveness.
Celebrate Success and Learn from Failures:
Acknowledge and celebrate successful innovations to motivate teams.
Embrace a culture that views failures as learning opportunities, encouraging
continuous improvement.
Iterate and Scale:
Iterate on successful innovations to enhance and scale their impact.
Encourage a mindset of continuous improvement and adaptation to evolving
business needs.
Integrating Technology in the Innovation Development Process
Integrating technology into the innovation development process is crucial for leveraging digital
tools, data-driven insights, and collaborative platforms. Here’s a guide on how to effectively
integrate technology into your innovation development process:
1. Innovation Management Software:
Implement dedicated innovation management software to streamline idea
generation, evaluation, and tracking.
 Choose platforms that support collaboration, transparency, and real-time
feedback.
2. Crowdsourcing Platforms:
Utilize crowdsourcing platforms to tap into external ideas and expertise.
Engage customers, partners, and even the general public to contribute innovative
solutions.
3. Big Data and Analytics:
Leverage big data and analytics to gather insights from customer behaviour,
market trends, and internal operations.
Analyze data to identify emerging opportunities, customer needs, and areas for
improvement.
4. Artificial Intelligence (AI) and Machine Learning (ML):
Integrate AI and ML algorithms to analyze large datasets and predict future
trends.
Use AI for intelligent decision-making and to identify patterns that may lead to
innovative solutions.
5. Virtual Reality (VR) and Augmented Reality (AR):
Apply VR and AR technologies for immersive experiences in product
prototyping and design.
Facilitate remote collaboration through virtual environments for distributed
teams.
6. Collaboration Tools:
Implement collaborative tools for seamless communication and information
sharing among team members.
Use project management platforms, messaging apps, and virtual meeting tools
to enhance teamwork.
7. Blockchain Technology:
Explore blockchain for secure and transparent management of intellectual
property, patents, and innovation-related transactions.
Ensure the integrity and traceability of innovative ideas throughout the
development process.
8. Rapid Prototyping Tools:
Adopt rapid prototyping tools that allow for quick and cost-effective testing of
concepts.
3D printing, virtual prototyping, and simulation tools can accelerate the
development cycle.
9. IoT (Internet of Things):
Incorporate IoT devices and sensors to gather real-time data from products and
services.
Use IoT data to enhance user experiences, improve functionality, and identify
areas for innovation.
10. Cloud Computing:
Utilize cloud platforms for scalable and flexible storage of innovation-related
data.
Enable remote access to collaborative documents, project files, and development
resources.
 11. Digital Twin Technology:
Implement digital twin technology to create virtual replicas of physical products
or processes.
Monitor and simulate real-world conditions to optimize innovation outcomes.
12. Cybersecurity Measures:
Prioritize cybersecurity to protect sensitive innovation-related data.
Implement robust security measures to safeguard intellectual property and
maintain trust.
13. Continuous Learning Platforms:
Integrate e-learning and continuous learning platforms to upskill teams in
emerging technologies and innovation methodologies.
Foster a culture of ongoing education and adaptability.

Innovation Process vs Innovation Strategy

It’s essential to differentiate between the innovation process and innovation strategy. While the
innovation process focuses on the execution of innovative ideas and initiatives, the innovation
strategy outlines the overarching business plan for achieving innovation goals.
Aspect Innovation Process Innovation Strategy

Definition The systematic steps and The overarching approach and direction align
stages in generating, innovation with business goals.
developing, and
implementing new ideas or
improvements.

Characteristi The overarching approach Long-Term Vision: It involves a long-term vision and
cs and direction align direction for how innovation will contribute to the
innovation with business organization’s success.External Focus: Considers
goals. external factors such as market trends, competitive
landscape, and customer needs. Resource Allocation:
Involves decisions on resource allocation, budgeting,
and investment in innovation initiatives. Risk
Tolerance: Defines the organization’s appetite for risk-
taking in pursuit of innovation goals.Adaptability:
Needs to be adaptable to changing market conditions
and technological advancements.
Example Within the Innovation A company decides to focus on disruptive innovation
strategy, the company in the tech industry to gain a competitive edge.
follows a structured
innovation process,
involving idea generation,
prototyping, testing, and
market launch.

Relationship between Innovation Process and Innovation Strategy:

The innovation process is a component of the broader innovation strategy.
The strategy sets the overall business goals, priorities, and resource allocation for
innovation.
The process is the execution arm, detailing how innovation will be managed and
implemented.
Risks of Innovation Process
Innovation, while heralded for its numerous benefits, is not without its inherent risks and dangers.
Here are some key challenges associated with the innovation process:
1) Technological Failure:
The primary risk in the innovation process revolves around the uncertainty of a concept
or product’s success upon market launch. To mitigate this risk, businesses often conduct
smaller-scale tests and employ efficient testing methods, such as launching prototypes.
Post-trial adjustments can then be made to avoid significant losses during mass
production.
2) Financial Strain:
Many innovations face the challenge of draining a company’s resources, as returns on
investment often materialize over the long term rather than immediately. This financial
strain may lead to the abandonment of ideas or products deemed non-profitable.
Evaluating anticipated profits and aligning the innovation with the company’s long-
term objectives becomes crucial.
3) Market Failure:
Innovations, especially those involving new technologies or products (“Radical
Innovation”), must align with customer tastes, needs, and preferences to succeed in the
market. Thorough market research is essential before significant investments in creation
and manufacturing to gauge product viability and potential demand.
4) Capacity Lack of Implementation:
Startups, in particular, may face challenges launching technologies due to financial and
structural limitations. Seeking strategic partnerships can help overcome these hurdles
by leveraging external capabilities. Ensuring alignment between partners and the
innovation mission is crucial to prevent conflicts of interest.
5) Organizational Risks:
Risks emerge concerning the structure and operations of the company once the
innovation is launched. There is a danger of allocating all resources to innovation at the
expense of daily operations. Effective planning and resource distribution by top
management is essential to maintain a balance.
6) Unpredictable Risks:
 Unforeseen risks influenced by external factors beyond a company’s control, such as
policy changes or political instability, can impact the effectiveness of the innovation
process. Having an emergency plan in place is crucial to navigate and mitigate the
impact of such unpredictable events.

Interviewing & empathy-building techniques

OBSERVATIONAL EMPATHY
willing to admit their own shortcomings as well as to abandon preconceived ideas for the
good of the overall vision and goals.

2. Be a Good Listener
To empathise, we need to listen and listen attentively. We need to choose actively to
block out our inner conflicting voices, and allow the other's voice to resonate. We need
to train ourselves to control our natural tendency to formulate our own opinions and voice
them before the other person has finished talking. Doing so would enable us to have a
deeper kind of listening, which uncovers deeper meaning and experience.

3. Hone Your Observation skills

In order to develop empathy towards our users, we need to do more than listen. We need
to observe others, and have a close reading of their behaviours, subtle indications, their
non-verbal expressions, body language, and environments.
Only once we are able to experience the full range of sensations of others within context
can we have a deeper and more meaningful empathic experience. Many times, what our
users articulate is only a fraction of the full story. By honing our observation skills, we
can fill many of the gaps, leading to a deeper understanding of someone else's experience.

4. Care
A genuine concern about the state of others, leading to the desire to act and assist, is
required. This is one of the important drivers that allow us to overcome our own needs
and wants and seek to understand others. We must build a sense of care, a deep concern
and desire to want to help, nurture, and provide assistance. This requires a level of
emotional insight.

5. Be Curious
Being genuinely curious makes engaging in empathy research not only easier but also
extremely rewarding as we learn to understand what motivates people. By being curious,
we are naturally inclined to dig into unexpected areas, uncover new insights, and explore
all aspects of people's lives. At a glance, these details might seem unimportant, but they
will expose the most important information we need for problem solving.

6. Be Sincere
Nothing kills empathy more than a lack of sincerity. When we approach people with a
superficial agenda, superiority complex, or any mindset that may undermine our sincere
intention to understand their experience deeply, we are placing a barrier between us and
those we seek to understand.
Rather than approaching people with the mindset that they are in need of our help, we
should realise that we stand to benefit more out of deeply understanding them. After all,
the solution exists to serve their needs, and your work will not be complete unless you
properly understand their needs.
Mitigate validation risk with FIR [Forge Innovation rubric]

For any Product Innovation, Validation Risk is associated with the following factors:
#1 Problem definition & Customer selection and specificity
#2 Problem significance & magnitude
#3 Motivation level of target customer to solve the defined problem
#4 Quantification & its acceptance by the target customer of the Value Proposition offered
by the innovation
#5 Adoption barriers that will prevent target customer from experiencing the value
proposition
Higher the Validation Risk, lesser the possibility that this product innovation can succeed
in the market. To reduce Valuation Risk the innovator is expected to demonstrate ‘traction’
and that requires a market-ready product and money to market, sell, distribute, acquire
customers, and generate revenues. However to reduce Validation Risk, one requires much
less money, but sure needs skills, tools, and a structured process.
Design Thinking — a scientific approach to innovating solutions, is easily the most
popular, and Steve Blank — referred to as the Father of Modern Entrepreneurship has
created a rich body of knowledge on the science and strategies of converting product
innovations into high-growth enterprises.
In Forge, inspired and guided by the resources of such thought leaders, we have focused
our efforts in developing a rigorous process of managing innovations. This process along
with the attendant tools, techniques, and milestones, guides innovators to systematically
address each of the factors and to neutralise the Validation Risk inherent in their product
innovations.
Innovators come up with innovative ideas to solve real-world problems, and they would
use tools enabled by fundamental science or applied technology to do so. From the earliest
ideation stage onwards it is essential to profile/measure the Validation Risk inherent in
product innovations, and work meticulously to neutralise the risk.
To aid this process, make it competitive, fun and effective, we have come up with Forge
Innovation Score — a point score on a scale of 0 to 100, consisting of 5 equal weightage
factors with a max score of 20 points each. Each of the 5 factors in turn have qualified or
descriptive sub-levels that indicate a measure of the Validation Risk as measured by the
corresponding factor.
 Forge Innovation Rubric offers a simple validation tool to use customer linked
evidences to systematically validate assumptions and translate them to facts,
giving a truer picture of the real commercial potential of product innovations,
especially in industrial sectors.

Parameter wise descriptors for the sub-levels to ease the scoring process.
NOTE: To help you understand the different terms used in the rubric in the exact same way
that I have meant, I would recommend that you quickly read through the User Guide for Forge
Innovation Rubric.
#1 Problem definition & Customer selection & specificity (20 points)
● Unable to understand the problem statement, very poorly described; (0)
● Vague definition of the problem but unable to understand a real-world use-
case/scenario and end-users that face the problem; (2)
● Only a generalised problem statement without any indication of a real-world
use-case/scenario and end-users; (4)
● A novel idea but purely technical in nature without a strong case for it being
applied in a real-world problem/use-case scenario; (6)
● Clearly defined problem statement as it is experienced by the beneficiary
(beneficiaries) in the real-world but without a description or indication of
significance/severity; (10)
● Clearly defined and validated problem statement with description of the
significance and severity of the problem along with profile of different types
of beneficiaries impacted by the problem; (20)
#2 Problem significance & magnitude (20 points)
● Unable to understand the problem statement therefore unable to assess the
potential; (0)
● Idea is about offering a very conventional product done several times before;
(2)
● A purely technical challenge in the form of a gap in existing
systems/solutions/processes but without any specific description of a real-
world use-case/scenario and end-users facing the problem; (4)
● The idea addresses some minor gaps in pre-existing solutions or is addressing
an unsolved problem with limited significance/severity; (8)
● Higher degree of problem significance/severity but relates to gaps/issues in the
existing solutions in the market today; (14)
● Unsolved problem with very high degree of significance/severity impacting
multiple beneficiaries; (20)
#3 Customer Motivation (20 points)
● A generalised description of the beneficiary without any indication of a
specific target-customer; (4)
● A weak profile of the target customer (end-user) chosen is indicated along with
a generalised description of use-case (problem scenario); (6)
● Good selection and profiling of target customer but isn’t aware or convinced
that the problem/need is a top priority to because the gains are not substantial;
(8)
● Good selection and profiling of target customer, actively addressing the
problem/need and dissatisfied with existing solutions; (14)
● Target customer is willing to collaborate actively on high-priority with a
budget commitment and co-create an innovative solution and in a time-bound
manner; (20)
#4 Value Proposition — Definition, Quantification & Validation (20 points)
● Vague description of the target customer (end-user) but unable to understand
how solving this problem offers any benefits; (2)
● A generalised description of the beneficiary without indication of specific
target customer but the benefits offered are too minimal or insignificant; (6)
 ● A generalised description of the beneficiary without indication of specific
target customer with reasonable benefits offered but not quantified; (10)
● A compelling value proposition targeting a specific target customer but lacks
any validation in the form of user/customer feedback; (12)
● A strong value proposition with quantified gains backed by strong validation
from a reasonable number of target users/customers; (20)
#5 Effectiveness of Solution Concept in testing Value Proposition (20 points)
● Vague definition of the solution without a specific set of outcomes that prove
that the problem has been solved; (2)
● Solution is presented purely from a technical point of view and will work in
the lab but looks impractical for end-user adoption; (6)
● Solution offers only the core feature/functionality to test/ prove the value
proposition, but has not been designed to overcome adoption barriers; (12)
● A very cost effective solution that can be prototyped rapidly to test the value
proposition and capable of overcoming the adoption barriers; (16)
● Proven solution/prototype effectively solving the core problem and has been
tested for usability, integration/ deployment constraints in one or many paid
pilots (end-user trials); (20)

Case studies