Understanding what innovation appears to be challenging for many. These 9 rules of innovation say it all no matter which industry we’re in.
Innovation is about finding ways to solve problems. And solving problems is about:
- Experimenting with various approaches. A single strategy is mostly a dead-end that locks innovators in a box. Getting out of the box is the single most important step for all innovators.
- Asking “why” something happens and trying to figure out the way it happens.
- Focusing on getting the hard part out of the way from the start.
- Rinse and repeat.
The 70-20-10 rule
Everything boils down to the 70-20-10 rule that can be applier in all sorts of contexts.
For example, we are likely to learn 70% of what we know when challenged and tasked to do things we’re not comfortable with, 20% from interacting with others, and 10% from formal education.
Practice beats theory.
Innovation is similar.
Focus 70% of your resources on activities that pay the bills and don’t consume lots of your time. In other words, improve what you’re good at.
Dedicate 20% of your time to experimenting with new stuff that targets different audiences.
The remaining 10% use wisely to experiment with high-risk products that have the potential to yield high revenues.
You can probably get away with a 10% loss without a major drama. You will survive an additional 20% drop in revenues. But you can’t risk two-thirds of your business.