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Purpose

Sustaining product innovation in an established company – increasingly the key to a company’s economic success, and perhaps its survival – is a challenging task The author describes a and the model often referred to as an “Idea lab” that has emerged as a necessary organizational feature to accomplish this goal.

Design/methodology/approach

The author explains how to manage Idea labs as deliberately established locations, where individuals and teams with new product ideas can work together for concentrated bursts of time, sharpening and focusing their product concept, embedding the voice of the customer in product design and charting alternative progression paths for their ideas to be developed into potentially profitable offerings by units of the business that will nurture them.

Findings

In today’s organizations, the managerial prime directive is fundamentally being redefined as one of addressing the challenge of sustained, profitable innovation that opens new markets or reinvigorates existing ones. Idea labs should be considered a vital process in fostering sustaining innovation.

Practical implications

A critical success factor is the interplay between idea originators, technology specialists and product managers with a keen awareness of customer needs, competitor initiatives and genuine product differentiation.

Originality/value

A comprehensive guide for top managers and innovators, the article details the four key facets of Idea labs: Positioning in the firm’s innovation value chain. Tasks. Processes. Structure.

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