In this episode we answer questions about innovation. Startups are expected to innovate, but what does that mean? What is innovation and how does it become an advantage? We are here to help! In this episode we answer questions including:
- What is innovation?
- Is there a process to innovation?
- What is the cost to not innovating?
- How do I know if I'm being innovative?
All of these questions were submitted by listeners just like you. You can submit questions for us to answer on our website TheStartupHelpdesk.com or on X/Twitter @thestartuphd - we'd love to hear from you!
Your hosts:
- Sean Byrnes: General Partner, Near Horizon www.nearhorizon.vc
- Ash Rust: Managing Partner, Sterling Road www.sterlingroad.com
- Nic Meliones: CEO, Navi www.heynavi.com
Reminder: this is not legal advice or investment advice.
Q0: What is innovation?
Innovation is the process to generate a new method, idea, or product that solves a problem. Innovation is an umbrella term that includes entrepreneurship, corporate innovation, social innovation, and others.
Adoption is key.
Q1: Is there a process to innovation?
Yes! However, innovation is not a direct line process. While there are common paths and milestones, the process requires judgement and the ability to cycle backwards and iterate.
Key steps include:
- Small teams
- Be uncomfortable: short deadlines and pressurized situations
- The common start across every innovation process is to identify “the problem”. Talk to people. Don’t do surveys. You need to find problems people need fixed. When you have done enough user interviews and found a problem, define it with precision.
- Brainstorm a variety of ways that you can solve the problem.
- Then, another important “judgement” moment. Amongst all of the possible ways to solve the problem, prioritize one. Figure out the solution that is closest to magic but also plausible to build.
- Run fast, incremental tests to try to solve part of the problem for your “true believers” – the people who feel the problem strong enough that they are willing to try your v1 solution.
- Collect data from your tests, iterate, and test again.
Resources available online include content about Human Centered Design, Design Thinking, and more. In fact, two of our hosts have produced tons of fantastic content on the topic: Ash Rust on Medium and Sean Byrnes’ The Breaking Point on Substack.
Q2: What is the cost to not innovating?
The cost for doing nothing can be catastrophic. A PwC survey of more than 4,700 CEOs worldwide showed that “45% of the respondents were worried that their businesses wouldn’t be viable in a decade without reinvention.”
Innovation is a durable skill set.
Innovation is hard to learn, but it is one of the few advantages you have. You won’t win by playing by the rules, you win by creating a new game.
Q3: How do I know if I'm being innovative?
There is no set of rules to guarantee that you are being innovative. Your innovation success requires adoption.
That being said, if you answer “yes” to the following questions, you are on the right track:
- Are you talking to customer and users to understand where opportunities exist?
- Are you describing problems with precision?
- Are you running fast tests then iterating?
If customers want your product or at least the idea of it, awesome. If competitors copy your idea, that’s a sign that you are bringing new value to an opportunity.
