Innovation cycle

From CEOpedia | Management online

Innovation cycle is a pattern based on valuable novelty theory. It is composed of four stages. An Idea Phase in which diverse new possibilities are generated, an Action Phase in which new possibilities are explored, a Reality Phase in which the consequences of those actions are felt, and a Feedback Phase in which the lessons learned are captured, processed, and utilized. The cycle continues as feedback generated in the last phase is then a foundation for creating more possibilities. Innovation cycle is described also as being cyclical, iterative, attractive, self-reinforcing, effectual and probabilistic. ( Dennis A. Stauffer, 2015)

Phases

  • Idea Phase

In this phase new ideas are being generated. That may be both new product ideas or scientific hypothesis. People tend to value more these ideas that lead to success, yet not only those are created. There are ideas that lead to failure and are generated during this phase. Ideas are diversify. Without diversity it is possible that innovation would stall.

  • Action Phase

In this phase ideas are tested. Experiments have to be done in order reveal the consequences of that idea. It can also be simply having the courage and the resources to act on one's ideas. It is the only definitive way to determine whether an idea works or not. However, some ideas are ruled out without being tested.

  • Reality Phase

In this phase the consequences of ideas are felt. Ideas are subjected to reality, to larger environment. Being presented to a larger environment is what ultimately determines whether an idea will lead to a success or failure. This test is entirely pragmatic.

  • Feedback Phase

In this phase information generated in previous phases is captured, processed and utilized. Future generations benefit from trials and failures of previous generations. This trials result in accumulated tools, knowledge, insights and capabilities that we have developed within any discipline or endeavour and are commonly used.

Innovation cycle characteristics

  • Cyclical

Innovation cycle is sequential, but has no start or end point. It is possible to pick up the cycle in any given moment. The is always some prior state-of-the-art. The are always some beliefs or scientific theories already existing in any intellectual pursuit.

  • Iterative

The cycle is iterative as it repeats the same steps, however it acquires new inputs and produces new outputs. It is constantly adjusting and redirecting itself. While still preserving its underlying pattern, it adapts and evolves.

  • Attractive

Innovation cycle is attractive as living organisms and businesses are effectively drawn to it. It is advantageous. It gives opportunity to survive. Successful innovations adapt a business to its environment. They provide competitive advantage and are used to ensure its survival.

  • Self-reinforcing

The Innovation Cycle has an internal logic that propels it from one phase to the next. It is confirmed that there is a substantial correlation between phases. New ideas must be acted on in order to create any value, what later leads to real world consequences, which will result in feedback. Then final information generated in Feedback phase will impact future generations of ideas.

  • Effectual

This termed is coined by Dennis A. Stauffer. "The crucial determinant of whether a new possibility becomes an innovation is outcome…. So, rather than being driven solely by a series of causal factors, this pattern is effectally guided by outcomes"- Dennis A. Stauffer Innovation Cycle is somewhat insensitive to specific causal factors because it is not necessarily important from where a new possibility originates. It is highly sensitive to its effect. When it comes to innovation, outcome is absolutely crucial.

  • Probabilistic

Innovation cycle is probabilistic as its future course is not knowable in advance. It originates from determinant mechanisms but is becomes indeterminate as it iterated. It is prone to failure and there are multiple potential impacts, outcomes and solutions. Innovation cycle never guarantees any particular outcome.

Examples of Innovation cycle

  • Agile software development: Agile software development is an iterative development method which follows the innovation cycle. It emphasizes on customer collaboration, quick feedback and flexible responses to changing requirements. It works in short cycles where the developers write code, test it and then deploy it. After the deployment, customer feedback is collected and used to identify areas of improvement and make adjustments in the next cycle.
  • Design Thinking: Design Thinking is an iterative process which follows the innovation cycle. It is used to solve complex problems and innovate new products and services. It begins with the identification of a problem and then proceeds to generating ideas, prototyping, and testing. After testing, the lessons learned are captured and used to refine the design and repeat the cycle again.
  • Lean Manufacturing: Lean Manufacturing is an approach which follows the innovation cycle. It is based on the idea of creating value for the customer by cutting out waste and eliminating non-value adding activities. Lean Manufacturing works by identifying areas of waste, creating processes to reduce waste, and then testing and refining the process. The feedback from testing is then used to further improve the process and create a more efficient system.

Advantages of Innovation cycle

The innovation cycle provides numerous advantages, including:

  • It creates a structure that encourages and supports the exploration of new ideas and solutions, allowing for more efficient and effective problem solving.
  • It encourages collaboration between different teams and departments, allowing for the integration of different perspectives and experiences.
  • It allows for feedback to be quickly assessed and addressed, enabling more creative and innovative solutions.
  • It encourages an iterative process, allowing for continuous improvement and refinement of ideas.
  • It helps to create an environment where risk-taking is encouraged and rewarded, motivating employees to develop new ideas and solutions.
  • It creates a system of accountability, helping to ensure that ideas are followed through to completion.

Limitations of Innovation cycle

The Innovation cycle is a powerful tool for encouraging creativity and driving innovation, but it does have some limitations. These include:

  • The cycle is not always successful: The cycle of innovation is not always successful and can fail to produce desired results. This is due to the unpredictable nature of innovation, and the difficulty of accurately predicting success.
  • It can be costly and time-consuming: The cycle of innovation can be costly and time-consuming, as it requires resources to be devoted to the research, development, and testing of new ideas.
  • It can be difficult to measure and track: It can be difficult to measure and track the progress of the innovation cycle, as the results are often intangible and long-term.
  • It can be difficult to manage: Managing the innovation cycle can be difficult due to the nature of the cycle and the need to keep stakeholders informed and motivated.
  • It may not be sustainable: The cycle of innovation may not be sustainable in the long term as it requires a constant influx of ideas and resources.

Other approaches related to Innovation cycle

  • Design Thinking: Design Thinking is a creative problem-solving approach that encourages teams to think in a more structured and systematic way. It includes five stages: empathize, define, ideate, prototype, and test.
  • Lean Startup: Lean Startup is an approach to developing new products and services that focuses on customer feedback and data-driven decisions. It involves building a product quickly and testing it with potential customers to see if it meets their needs.
  • Agile Development: Agile Development is an iterative approach to software development that breaks projects down into small, manageable pieces and emphasizes collaboration among team members. It encourages teams to quickly deliver working software and respond to customer feedback.
  • Disruptive Innovation: Disruptive Innovation is a term used to describe innovations that disrupt existing markets and create new ones. It involves creating products and services that are simpler, cheaper, and more accessible than existing ones.

In summary, there are several approaches related to Innovation Cycle, such as Design Thinking, Lean Startup, Agile Development, and Disruptive Innovation. These approaches focus on customer feedback and data-driven decisions, iterative development, and creating products and services that are simpler, cheaper, and more accessible.


Innovation cycle — recommended articles
Innovation models — Stage-Gate process — Innovation and change — Lean product development — Lean startup — Creative process — Innovativeness — Total Innovation Management — Organizational innovation

References

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