IDEA TO COMMERCE – THE JOURNEY

 
Let us start by understanding the life of say - 1,000 ideas. What happens through their evolutionary journey to become, maybe, a valuable enterprise? Disclaimer - the chart below is not accurate but close enough. The information sources I used are several:

• Over 5,000+ ideas/innovations nurtured processed by proof of concept initiatives;
• statistics culled from published papers and reports;
• experienced observations from many years as a venture capitalist and due dilligence consultant;
• as Board member for twenty-four small and emerging technology companies;
• forty-five years working in the proof-of-concept trenches with corporations, governments, and universities.

The journey to commerce begins far back in the pipeline – with a novel idea. So, the ultimate enterprise deal flow starts with someone's "creative idea", pieces of paper in a suggestion box", the outflow of a "brainstorming session", and a "brilliant flash" that comes in night.
A glossary of chart terms, below, may be helpful.

1. Novel Idea is a thoughtful conception of doing anything in a new way.
2. Rejected because the idea is not market timely nor developed enough to consider.
3. Sift for Reality rates the innovation for probable market acceptance.
4. Proof of Concept determines whether the innovation is feasible to develop and make.
5. Development brings the feasible innovation to performance/value demonstrability.
6. Pre-Market Beta is the first trial by typical users/customers.
7. Product/Service
   Launch takes to market a value validated offering.
8. Revenue/Growth occurs as user demand continues to buy a product/service.
9. Cash-Out exchanges money for the valuable product/service enterprise.
   
    
   
   AN IDEA'S LIFE JOURNEY

Event	Timetable	Investment	Survival Rate	Cum Ideas
Novel idea	Immediate	Zero	100%	1,000
Rejected - too early/late	4 weeks	Listen time	40%	400
Sifting for Reality	3 months	$5 - 10K	50%	200
Proof of Concept	1/2 - 2 yrs	25 - 100K	60%	120
Development	1 - 2 yrs	250K - 2M	50%	60
Pre-Market -Beta	6 - 9 months	1M	80%	50
Product Launch	3 - 9 months	1 - 2M	75%	40
Revenue/Growth	2 - 4 yrs	3 - 5M	30%	12
Cash-Out – from launch	5 – 7 yrs		40%	5
Cum Totals	9.5 yrs	$7.2 million	0.50%

(C) The Proof of Concept Institute, Inc. 2008 Estimates based on author's 40+ years of experience
Comments to consider:

1. Building a flow of novel ideas is mandatory to assure enough will survive.
2. The first filter, rejected - too early/late, drops sixty percent of Innovator ideas. Good practice is feedback about why, what they can do to improve the idea, and help offer to resubmit.
3. Sifting for reality will yield innovations that are just "incremental" – that is, adding modest improvement/value over existing ways; and, innovations that are ground breaking, disruptive, paradigm changing. Good practice is nourishing these.
4. Innovations, incremental or disruptive, CAN NOT move to the development phase without passing through proof of concept stage. Unless an innovation is shown feasible, there is not development funding.
5. The PoC Manager stands between arm-waving innovators and risk-averse investors. Your work is the most vital in the idea's journey to enhance its value.
6. Note that although attaining feasibility, only 50% get funds to reach the development phase.
7. While 70-80% of those move into the market, 70% fall away before reaching revenue growth.

The Institute's blog mission is to coach PoC managers how-to assist innovators to move their best ideas forward. I will probe critical issues, illuminate actionable alternatives, assess how others have solved problems, and distribute best practice with experienced wisdom. Your comments are most welcome.