Open Innovation

https://en.wikipedia.org/wiki/Open_innovation

• designers at companies work 9-5 boring jobs. They don't deliver their best when they find themselved discouraged

Selling your idea

• show them how your idea can make them grow.
• first to market wins (get first into shelf-space)
• consumers are driven more by desire. Easier to target than B2B

Pros of licensing ideas

• reduces R&D costs
• accelerates product development
• multiplies the ideators

One Simple Idea (Book)

Manufacturing vs Licensing

• Simple idea + existing technology + 3 or 4 players in the market = LICENSING
• Unique idea + new technology + 1 or 2 major players in the market = MANUFACTURING

how to bring an idea to market by yourself

Study the market

• who are your customers
• who are your competitors
• what can you offer that is different

Develop your product

• Design product and packaging
• Build and test prototypes
• File a patent
• How to manufacture the product
• Regulations and requirements
• Business plan (production, distribution, manufacturing)
• Raise capital
• Licenses, insurance, employees...
• Sell

how to bring an idea to market by licensing

Study the market

• competitors (major and small players)
• how does my idea compares and contrasts
• value proposition
• how large is the market
• primary customers
• potential sales

Develop your product

Prove that it is sellable, doable and valuable

• file a provisional patent

Ideas

Create an idea for what is missing and needed in an existing market

• look for categories that you're passionate about

Brainstorming

• don't judge ideas in brainstorming mode

Mix and match

pick two different objects and think how to combine them

• eg. camera + phone
• water toy + jet technology = Super Soaker

What if

ask what if a product could do X

• eg. Netflix (what if there were no late rental fees?)

Solve it

observe problems in day-to-day and try to solve it

• eg. Spinformation
• your problems might not be a problem for everyone

Choose your winning idea

Assess which idea to work with:

• focus on one idea at a time, all the way through the entire development and licensing process before picking another idea
• doesn't matter how big/small, complex/simple, unique or clever it is
• focus on ideas that will take the least amount of work and the highest possibilities of success.
• ideas should be able to be explained in a sentence. Avoid ideas that require education of the customer since that is very expensive

Litmus test

does it solves a common problem?

• confirmed and well defined needs instead of maybes
• the most universal the better

does it has a wow factor?

• wow consumers and potential licensees

has a large market?

• a product that can be sold by all the major retailers for that market
• it almost takes the same amount of time and effort to license a product with a big market than it is for a moderate market.
• find if the category is a growth category
• are the comparable products selling well?
• how are similar products priced?
• what is selling, who is buying? who are the major players?
• which are the trends?

uses common production methods and materials?

• how will it be manufactured
• how much will it cost to manufacture?
• get a network of experts, mentors in that category. someone who has already done it

Challenging industries

• software
• packaging

Recommended industries

• pet
• kitchen/household
• hardware
• novelty gift
• direct response TV

Most marketable ideas are:

• evolutionary, incremental improvements to existing products
• solve problems
• address needs
• satisfy desires

which means customers are willing to pay for them

• look for small changes that make a big impact

Generate ideas

• audio recording, notepads, sketches
• dump all product ideas into a repository
• use Evernote
• serendipity might happen in the shower, while driving, on an airplane, etc. So be ready to take those notes.
• look at things with creativity and wonder like you did when you were a child
• passion drives creativity
• look at things in different ways and angles

Awake sleeping dinosaurs

• find products that have been unchanged for a long time and make a simple change.
• eg. laser tag, denim bags, alien guitar pick

Inventors logbook

a log of your ideas and the process of evolution.

• it helps prove that you are the creator.

• document the idea from the moment you conceive it
• document it's changes
• document final look, licensing and manufacture.
• use a separate logbook for each of your idea.

Marketplace study

how does the idea fits into the market

• is the idea isn't unique? the market might be saturated
• are there are No similar products? there might be no market for your idea

Manufacturers

• check the top manufacturers
• they might post their price lists

Field observation

record and take photos of your findings

• small details that are easy to overlook
• flaws or gaps in form or function
• inefficiencies or inconveniences
• boring or outdated materials and styles
• differences in how different people would use or view the product
• unconventional use of the product
• other products that are used for the same purpose

Due diligence

Get Real World information. Avoid assumptions.

• visit stores to see people's reactions to products
• which markets are hot
• check emerging trends
• check websites, blogs, forums, social networking groups
• consumer magazines eg. Wired & FastCompany
• TV shows and industry newsletters that cover trends
• go shopping and ask store managers which are the hot products
• trade shows
• check which products in stores get the most shelf space
• which traits sell well and at what price?
• search in Google images and Google shopping
• Amazon search and read the reviews for similar products

Focus on a specific market

Become an expert in a micro category

• customer demographics
• SWOT analysis
• value proposition
• how will customers use your product
• distribution channels
• price (manufacturing and retail)
• how to manufacture and package your product