Logical frameworks are wonderful for shaping new ideas and explaining innovation to corporate sponsors, venture capitalists, bank managers and spouses. This article explains the seven questions you need to answer to test the potential of a new innovation.

1. How to appraise innovation 7 questions to test ideas for big and unreasonable profit potential simon kirby | opine consulting | www.opineconsulting.com | © Opine Consulting Limited, 2010

2. First, an important nuance “Irrational passion is the key change agent of our economy." - Seth Godin "Great ideas can't be tested. Only mediocre ideas can be tested." - George Lois Logical frameworks only get you so far. But they do help to shape ideas and explain them to corporate sponsors, venture capitalists, bank managers and spouses.

3. Seven key questions “The toughest question has always been, ‘How do you get your ideas?’ How do you answer that? It's like asking runners how they run, or singers how they sing. They just do it!” -Lynn Johnston

6. What’s the proposition? “One thousand songs in your pocket.” - Apple [A proposition is the sum total of benefits that a customer gets from a product or service. ] Key questions: Is the proposition clearly defined? Does it meet strong customer needs? Is it different? Is it interesting?

7. Can I lock-out competitors? Key questions Is the innovation patentable? Can I use or build a powerful brand? Are there any scale economies and can I get big quickly enough to benefit from them? Do I have an insight, knowledge or skill that’s rare and significant to the innovation? Can I build exclusive partnerships?

8. Is it do-able? “…one must look at things from the simplest, most practical point of view. ” - Fyodor Dostoevsky Key questions Who needs to be asked what to understand if it can be done? Are there precedents that suggest it’s feasible? Can you do it at reasonable cost and risk?

10. Is it a strategic fit? If you work in a corporate you need to answer this. Many strategy academics, take a resource based view, which means answering: Key questions What core competency would the venture deploy? How does it fit or leverage brand or distribution strengths? Does it use proprietary processes, skills and know-how?

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