Wave of InnovationWhen developing an innovation a key question is, what value does this new product or process bring to the user? The next question then becomes what is value?  Often when we talk about value, we talk about monetary value.  How much does this cost or how much is this worth?  For an innovation, value can be measured by asking will it be used or does it have utility?  Edison described it this way, “Anything that won’t sell, I don’t want to invent. Its sale is proof of utility, and utility is success.”

Edison learned early on that to create something that would sell you had to bring enough value to customers that they would be willing to purchase the product.  While this may seem like a simple concept, it is sometimes over looked.  Many seemingly great ideas do not make it to market because they do not reach a good balance between cost and value.   Often to make it work you either have to find a way to lower the cost or raise the value.  Being able to do this effectively is what often separates a good invention from an innovation.

The short video below illustrates this principle.  An Australian company is developing a product that can capture the energy from ocean waves and convert it into electricity.  Unlike other approaches to this, their system is underwater and does not interfere with the view of the ocean or ships.  The video talks about some of the advantages of the product but then at the end it makes the most important observation.  It says that the company believes that it can be cost effective if deployed in a large enough scale.  While we would all like to see clean energy such as this, at the end of the day it will only be adopted when the cost is competitive with other sources of energy.

When you work on your innovation keep the concepts of cost and value in mind every step of the way.  This mindset will keep you on the wave of innovation and may be the key to your success.

This blog was originally posted May 18, 2016.

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