Following are descriptions of each stage of the Fugle model, as well as the requirements of each stage. Figure 14 and Figure 16 present an enlarged and more detailed view of the converging fuzzy front-end phase, and of the diverging deployment phase.
| Page 32 The definition and development of Open Innovation models
3.4.1 Idea Generation / Identification Stage
3.4.1.1
Description
The Fugle model as a whole commences with the Idea Generation / Identification Stage. During this phase the seedlings that will form new innovations are created. Creativity thus plays a crucial role during this phase.
The detailed activities of this stage include:
Collect, categorise and present information Generate and collect ideas
Capture ideas Idea filter
The generation of ideas is also used to identify new viable opportunities. It is argued by Gous (2008) that the effective and efficient capturing, classification and presentation of information can act as a stimulus for idea generation.
Du Preez and Louw (2008) argue that presenting the right information to the right people at the right time could trigger new ideas. These ideas may concern the exploration of problem areas or areas of opportunities that the organisation may want to investigate or that are attractive to the organisation. In the traditional sense, ideas can germinate from focused workshops and brainstorming sessions (Du Preez and Louw, 2008), but information from various sources should be obtained to improve the germination process. These sources of information include information on current problems, new technologies, competitors, customers and organisational strategies.
The stage is concluded with an idea filter that acts as a decision-making point to determine the plausibility of the developed ideas. The ideas are judged in terms of their correlation with the organisational strategy. It is thus obvious that creativity plays an important role in facilitating the idea generation process, although the creativity should be guided, not stifled, by the information provided.
3.4.1.2
Requirements and deliverables
The requirements for the initial phase revolve mainly around generating large quantities of creative ideas to address newly defined opportunities as well as problems in an innovative fashion. Therefore, the requirements for this phase that may prove to be relevant to Open Innovation include:
the quantity of ideas, and creativity.
| Page 33 The definition and development of Open Innovation models
3.4.2 Concept Definition Stage
3.4.2.1
Description
It is during the Concept Definition Stage that the ideas identified and evaluated in the previous stage are transformed to form more tangible and plausible concepts (refer to Figure 14). Literature suggests that in various instances different ideas should be combined to form a concept (Du Preez and Louw, 2008 and Gous, 2008).
It is also suggested that the preliminary concept be shared with specific individuals to incubate it. The purpose of this would be to provide time to refine the concept before it is subjected to the concept filter. Also, valuable insights (as to new opportunities or concepts) can be gained from sharing the formed concept with specific role-players.
The concept filter is used to evaluate the proposed concepts against a set of criteria. These criteria include:
matching the concept against the organisation’s strategy
assessing the commercial attractiveness of the intended offering, and
sharing the rough concepts with relevant role-players to foster better incubation.
3.4.2.2
Requirements and deliverables
The requirements that could prove relevant to Open Innovation relate to the sharing of the concept with specific individuals. It is during this activity that the process lends itself to being more open.
Whereas the assessment of the plausibility of the concepts needs to be an internal exercise, the incubation and refinement thereof can be positioned to include external input. This input may prove to be valuable, since refining the concept according to the preferences of the external role-players may lead to a product that is more suited to the end customer’s requirements.
| Page 34 The definition and development of Open Innovation models
3.4.3 Concept Feasibility & Refinement Stage
3.4.3.1
Description
As the life-cycle iteration progresses through the stages, the ideas are made ever more tangible. The roughly refined concept identified in the previous stage is now further refined and researched during the current stage to determine its feasibility (see Figure 14).
Various tools can be deployed to assist in this refinement and feasibility-testing process. These include prototyping and modelling – all to assist in the realisation of the feasibility assessment.
It is during this stage that the business case for the concept should be developed. The entire exercise should act as a learning experience, and it is suggested by Wycoff (2007), “to fail fast and smart”. This means it would be of more value to the organisation to cease the development of a flawed business concept during this stage, rather than later when a resource-laden product has already been developed.
Therefore, the assessment concerning the feasibility should be done properly. Information regarding the market, customer needs and wants, as well as available technologies should all be used to assess the concept.
It is only through the proper development of a business case for the innovation concept that the probability of success will be realised.
3.4.3.2
Requirements and deliverables
The previous paragraph suggests that the inputs required for this stage include (besides the defined concepts) various sources of information, as well as prototypes or semi-functioning models to assist in the assessment of the feasibility of the concept.
Therefore, external input concerning customer needs and wants (preferences) can potentially be incorporated to aid the information about the market. However, the final assessment still needs to be an internal affair, as it is in the best interest of the organisation to decide internally whether to proceed with the further development of the concept or not.
The final deliverable of this stage is a concept with the potential for further development, with a well- developed business case that discusses the feasibility and potential rewards of the concept. These outputs are then subject to evaluation in the funding gate.
The funding gate is also referred to as the “Realisation Funding Gate”. It is with this activity that the organisation should decide whether to proceed, halt or remove the developed concept and business case.
| Page 35 The definition and development of Open Innovation models
3.4.4 Portfolio Stage
Figure 15 - The Portfolio Stage with accompanying Launch Gate
3.4.4.1
Description
The developed and tested concepts now enter the Portfolio Stage. The outputs from the previous stage (developed concepts with accompanying business cases) are utilised during this phase. They serve as an input to the portfolio stage to be included in the managed innovation projects portfolio of the organisation.
The Portfolio Stage manages the holistic portfolio of developed concepts. It is during this phase that strategic prioritisation, scheduling and release of the concepts into the Deployment Stage are managed. This stage also controls the management of resources and funding to assist in the deployment of identified concepts.
It is therefore clear that the activities in this stage are all of an internal nature, and the possibility of external collaboration on these activities is not recommended. The Portfolio Stage is thus the epicentre of the entire innovation process, and acts as the core internal stage that the organisation should sustain to maintain competitiveness over its competitors and collaborators.
The stage is concluded with the launch gate, as depicted in Figure 15. The launch gate is the realisation of the decisions made during the stage as a whole – at which point the chosen project is launched, based on its (and the market’s) readiness.
| Page 36 The definition and development of Open Innovation models
3.4.5 Deployment Stage
Figure 16 - The second phase of the Fugle model
3.4.5.1
Description
The second phase of the Fugle model commences with the Deployment Stage. Whereas the “funnel” stage was concerned with better defining the proposed ideas, the second half, the “bugle” stage, focuses on the actual development, deployment and extended control of the chosen projects (from the portfolio).
The Deployment Stage contains the activities of detail design and project planning. It is followed by initial refinement, leading to an implementation gate, which assesses the maturity and readiness of the project and the implementation plan. It is only after the project passes through this gate that it will be implemented.
The detail design of the project involves the development of specifications and processes, and the identification of business requirements. These planning activities are then realised through
| Page 37 The definition and development of Open Innovation models
manufacturing, software development, purchasing, and the installation of physical equipment. The detail design of the project is also associated with detailed testing.
3.4.5.2
Requirements and deliverables
The input into this stage results from the launch gate, consisting of the developed concept and its associated business case. Thorough planning is then required to enable the organisation to deliver the intended product/offering.
Besides planning, which should be done internally – detail design can be orientated in such a way as to create room for a collaborative approach.