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Friday, July 07, 2006

Capturing value from ideas that don't fit...

Very often I find that companies dismiss ideas that do not fit their existing business processes or business models even though these ideas can have significant value. The ideas that do seem to move to development are those that "fit" a current business of the company and therefore do not cause significant turmoil in the company's daily operations. But these ideas are generally, because of this notion of fit, incremental in nature and not of higher value potential.

In fact there are companies' capturing higher value from ideas that don't "fit" their current business. The companies are utilizing innovative approaches and Launch Institute has defined these approaches in "Seven Strategies for Value Capture". These strategies take into consideration a set of factors that help to determine which model is best for which idea/concept.

Understanding the context, capability requirements, capacity issues, capital needs and commitment required for the idea/concept is the first step in understanding which strategy is best. If all of these assessment points are in place, then the idea probably fits well within the existing business. If not, the other options are available to develop and commercialize the idea.

Key questions here are: Are there more assessment points to be considered? What other strategies for value capture exist? Are there other creative examples of what companies are doing to develop and commercialize their "non-fitting" ideas?

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