Innovation in Practice Blog
The LAB: Innovating Software Applications with S.I.T. (August 2011)
Software runs much of our lives. It runs everyday items like computers, automobiles, banking, telephones, and even kitchen appliances. Software will affect more of our daily routines in the future. According to market researcher DataMonitor, the global software market will grow to $457 billion, an increase of 50.5% since 2008.
The problem with software is you cannot see it. The term was coined originally as a prank to contrast the term, “hardware.” Unlike hardware, software is intangible – it cannot be touched. So how do you innovate software especially with a corporate innovation method like S.I.T.? This method uses the components of the product or service as the starting point. Companies sometimes struggle creating new applications because software seems too abstract.
The secret to using S.I.T. on software is this. Don’t innovate the software code; rather, use the innovation method on what the software does. Apply the method to the products and processes that the software affects. This will create new-to-the-world innovations. Then, write the software code that implements these new applications.
Here is an example with the software program, Quicken. We start with a component list of a routine process within the software – creating an invoice.
Innovation Suite 2011 in Berlin
SIT will hold its 7th Innovation Suite in Berlin, Germany from October 24-26, 2011. Participants will learn the tools and principles of the SIT method step-by-step. They will also learn how to implement an innovation program within their companies.
Innovation in Private Equity
Private equity firms can boost the value of their investment portfolio by applying a systematic innovation method along the entire investment value chain – before, during, and even after the investment.
Private equity firms are collections of investors and funds that put money into privately-held companies. Private equity investments provide working capital to a target company to nurture expansion, new product development, or restructuring of the company’s operations, management, or ownership. Private equity firms are betting on their ability to take control of the target, clean it up, make it more competitive, and then sell it for a higher price. It is like “flipping” a home in the real estate market.
Here is how a private equity firm could apply systematic innovation in their portfolios:
Innovation and Brand Coherence
A quick and effective way to sort ideas generated during an innovation workshop is to apply brand coherence. This means grouping ideas around relevant themes that support new or existing brands. Ideation sessions can overwhelm you with hundreds of opportunities. Teams struggle with evaluating and selecting the best ideas if they do not apply this simple step first. Here is a suggested way to do it.
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