Following up from our previous post ‘How to Recognize Crazy Innovative Ideas that Aren’t so Crazy‘, and taking a slightly different viewpoint, this article from the Conversation addresses one of the main aspects of decision-making: ‘Gut feel or rational analysis? Both may be vital in finding winning ideas for new markets‘. It summarizes some research on the processes followed by companies trying to find winning ideas to penetrate new markets. And the conclusion is clear: intuitive approaches are more powerful to uncover new markets.
Like individuals, “Some [companies] will instigate procedures that encourage more analytical decisions – for example, using formal idea evaluation tools such as grid analysis techniques and weighted point-rating evaluation matrices. Others may opt for more informal ways of evaluating ideas, which leave more room for evaluators to draw on their intuition.”
The conclusion of the research is quite clear:
- Rational idea evaluators tend to seek out ideas that focus on a company’s current strengths.
- Intuitive evaluators focus more on identifying opportunities to enter new markets.
- For intuitive evaluators, a highly formalised evaluation process reduces their emphasis on finding opportunities in new markets.
Hence it appears that intuitive approaches are more suited to exploring new market opportunities, and it also appears important not to introduce the rational approach too early in the process, letting intuitive approaches identify opportunities first!
