Proof Of Value – Innovation Projects
Understanding the innovation cycle – “Proof-of-Value”, Our design and innovation team spends a lot of time talking to organisations with big ideas. Most of these businesses are looking to navigate the path that will turn their grand vision into a commercial reality. Some have a clear idea of the steps they need to follow. Others are looking for assistance on how to validate and build and launch their product or service.
Wherever you are on this spectrum – and wherever you are on the journey between idea and launch – I thought it would be helpful to explore the ideal innovation pathway. I’ll look at the steps you should be looking to follow, namely proof-of-concept, prototype and then minimum viable product (MVP), which then gets evolved and expanded, based on feedback and usage insights.
When companies started to think about Innovation through “Digital Transformation”, Emerging Technology & IoT-based business models, it was only about the technical feasibility of such projects. The so-called “PoV”, short for “Proof of Value”, was the focus of interest. The time for trial and error is now over. Emerging Technology has now firmly established itself in many companies. At the same time, companies have paid out a lot of money for less successful projects.
These experiences have led to a change of perspective among decision-makers and those responsible. Especially in times of crisis, expenditure is looked at more closely than before, projects should therefore no longer be carried out for their own sake, but should contribute a concrete, measurable business success. In other words: streamline processes to save costs or generate new revenues. PoC alone is no longer sufficient for this. The actual needs of a new IoT business model must therefore be established as precisely as possible in advance and it must be determined what value it can generate for the company. At the same time, however, it is also necessary to calculate what is at all feasible. Taken together, this means that the PoV – i.e. the “Proof of Value” – now plays the decisive role.
Business Process Re-Engineering & Continual Improvement
In every organization, change is inevitable and constant and need to continuously focus on evolving customer preferences and thrive customer centric approach by new technologies, and adapt to mercurial market forces. To affect and manage change, organizations turn to two strategies: business process reengineering and continuous business process improvement. Let us look at how these two transformative concepts can help you reach your business goals.
Both business process engineering and continuous improvement focus on reshaping existing processes, but BPR aims to shake things up fundamentally.
BPR focuses on outcomes instead of individual tasks. Rearranging the order of tasks, eliminating tasks; these are more in the continuous improvement wheelhouse. Upending a process or expanding the horizons of your company ethos falls under the BPR umbrella.
Even after you implement a seismic BPR-level change, you need to adopt a continuous improvement mindset to ensure its success. By doing so, you can measure the effectiveness of your transformation against key KPIs and make further tweaks and changes as necessary.