Understanding what innovation appears to be challenging for many. These 9 rules of innovation say it all no matter which industry we’re in.

9 Rules of Innovation

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.

 

 

 

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