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DEVELOPING NEW BUSINESS IDEAS20

generating data and combining rigorous analysis with the creative
generation of a range of possible solutions, the idea development
process significantly increases the amount of relevant information
available to the entrepreneur and thereby decreases uncertainty.

when starting to develop any business
idea, the entrepreneur inevitably
experiences initial uncertainty

In the case of the ill-fated Iridium project, for example, lack of regular
management scrutiny allowed the project to evade the type of challenge
offered by the idea development process which would have highlighted
in advance the catastrophic blocks to implementation.

quantity creates quality Perhaps one of the most widely

recognised benefits of the idea development process is the likely
increase in idea quality provided by the generation of a large number of
alternatives.

Based on simple probability, the greater the number of alternatives and
options generated, the greater the likelihood of generating at least one
or two superior solutions. If you jump straight into implementation and
the business plan with your first idea, the best possible solution might
be overlooked.

15 per cent rule On the corporate stage, the approach to innovation
adopted by 3M is widely applauded. The 3M culture includes the 30
per cent rule, requiring a division to generate 30 per cent of its sales
from products introduced during the past five years. The culture also
includes the 15 per cent ‘bootlegging’ rule which allows staff to spend
up to 15 per cent of their working week on a topic of their choice,
provided that it is product-related.

3M’s encouragement for new ideas is underpinned by the belief that
unfettered creative thinking will pay off in the end and is exemplified
by the 3M ‘war story’ of Francis G. Okie. Retaining his job despite, or
perhaps even because of, his suggestion of sandpaper as a viable
alternative to razor blades in 1922, Okie went on to develop one of 3M’s
first blockbusters, a waterproof sandpaper whose superior performance
characteristics made it a market-leading product in the auto industry.