Recently, a post on 280 Group LinkedIn discussion board asked whether innovation was a science or and art. My response to the question was that innovation is an art, but the productization and exploitation of the idea is more of a science. If you have a truly innovative product, you  usually can't ask the consumer about it until you have a working  protoype (whether storyboards or an actual product). Truly innovative  products are the ones that the customers don't even realize that they  want (yet). A great example of this is the iPhone. Just before Apple  released the iPhone, the overall trend for cell phones was to make them  smaller and slimmer - think of the Motorola Razr for a prime example of  this trend. If Apple had gone to the consumers and asked them what they  wanted, I doubt whether we would have ever seen the iPhone. Apple had  an innovative product that went counter to the market trends...they went  on their intuition. (Obviously, Apple would have market tested the idea  and some prototypes - but they didn't just rely on market research to  tell them what to build).
Truly innovative product do not have a precedent that you can follow -  there are no predecessor products for marketing or pricing and  packaging. They change the shape and form of the market place and create  a new demand that catches competitors unawares. Look at the iPhone  again as an example of a market changing product. The old cell phone  manufacturers (e.g. Nokia, RIM) are struggling to maintain relevance in  the new market - Apple turned the market upside down and now the major  manufacturers are getting left behind in their dust.
So...to get back to the original point, innovation is an art. You  cannot 'focus group' an innovative product - someone in the organization  has to have the spark of genius to see the opportunity and how to  address it in a way that no-one else has imagined. You then need to  'productize' the idea so that you can market test it on selected  customers. In this context, productize does not mean build it to  completeness. You need to have enough 'product' to show it to customers -  so it might be a storyboard, or a v0.1 application, or a working  protoype. This requires some investment, but at this stage you haven't  built a manufacturing plant, or assigned 10 software engineers to build  the application. The market testing will also provide feedback to allow  you to refine the product. You can incorporate the feedback in  subsequent releases if you have a product that can operate with rapid  iterations (e.g. cloud-based or web-based applications).
So the 'art' is the original idea and growing that into the first  iteration of the product. The 'science' is the subsequent market testing  and feedback, iteration and feedback, and so on.
P.S. If anyone is interested in the concept of "prototype (or v0.1),  market test, get feedback, and repeat", Steven Gary Blank coined the  term "Customer Development" to explain this. He writes about this in his  book "The Four Steps to the Epiphany"  and recorded a series of lectures at Stanford University that are worth  watching (http://ecorner.stanford.edu/author/steve_blank).
In fact, anyone interested in innovation and entrepreneurship (Stanford  use this word, so it must be OK!), should visit the Stanford  Entrepreneurship Corner web site (http://ecorner.stanford.edu/index.html)  and watch videos of some of the leading innovators delivering lectures  at Stanford University. I promise that it will be worth your time.                                              
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