What is IDD and what can you expect to get out of the learning process

IDD [Innovation Due Diligence] is built upon 3 steps, each containing a number of modules and tools that will analyze the potential of an innovation in a structured, data-driven and actionable way:

IDDwhat – Current state: Focuses on critically and structurally analyzing and establishing the current state of the innovation, in a way that is understandable and communicable internally and externally. This will provide the foundation to enable efficient market analyzes and hypothesis testing.

IDDwhere – Target market selection: Build hypotheses on target markets, and then test these by structurally interviewing validators to enable target market selection based on real market insights.

IDDhow – Commercialization strategy light: Critically analyze the market[s] selected in IDDwhere to form an initial understanding of  if, why and how the product or service could be commercialized profitably in the future

Our recommendations for IDD-learning process

This learning process should be viewed as a thinktank of methods and toolboxes for early innovations, where we present our core methodology for testing the potential of new ideas. We recommend you to use our method and modules as a structured approach on a real-life case you’re working on. The maturity level, degree of prior knowledge and amount of already gathered market insights will vary between cases, but we recommend you all to follow the structure provided but put in more or less effort where you find gaps or strongholds in your existing innovation analysis.

  • Put time and resources into the IDD-process – the output of the method depends on your input
  • Never be afraid of going back and iterating – this is a key part of the process
  • Keep an open mind to new discoveries – though you need to be hypothesis driven you also need to capture new insights
  • Don’t try to fit a square into a hole – If all insights tells you to reconsider your innovation, you should most likely reconsider your innovation!”
  • Leverage each other – To enable efficient progress while also capturing critical thinking it’s always recommended to work on IDD in teams

Structure will make you avoid many problems

IDD is built upon years of experiences of failures and successes as well as collaborations with many other innovation actors globally.

Many of the key problems we’ve seen could have been avoided by doing a due diligence on the innovation, the customers or the market players. The IDD-process can, of course, not account for every possible source of failure but the canvas laid out in this learning process will significantly mitigate the risk.

Problems we’ve seen

Not knowing the benefits valued by customers – but still investing money in development

Missing the key requirements to be a eligible choice – some things are hygiene factors

Not analyzing competitor games, solutions or trends – going blindfolded into war

Not understanding the value chain – having a great product but no means of profitably selling it

Not understanding your market’s size and dynamics – The cake might be smaller than you thought

Over-developing – the market changes while you invest money in ‘the perfect solution’

Application areas of the output

The results from the full IDD, or the different steps, can be used in a variety of innovation contexts depending on the situation and need. Regardless if you’re a researcher, a research institution, a company or a private inventor.

Key application areas of IDD-output

  • Support in capturing and formulating business impact assessment when writing applications for research projects, e.g. EIT Raw Materials, H2020 etc.
  • Support on how to conduct market research and commercialization planning during a research project
  • A prioritization or stage-gate method for a portfolio of innovations at a Company, University or Research Institution
  • A structured method and tool for inventors to mitigate investment risk and capturing potential future values
  • A toolbox for business developers and innovation managers

Contact us if you have any questions