Opportunity Identification

Abstract

Abstract We discuss the process of opportunity identification, the first phase in new‐product development. Whereas many sources assume it is the generation of ideas that is most difficult, it appears that selecting the most promising among them is the key issue. The probability of choosing the most viable ideas (or opportunities, or strategic options) increases with using predefined, relevant criteria. Such criteria should follow from a company's product strategy or product innovation charter. We present and discuss a systematic way of assessing new opportunities, based on four criteria. These criteria are business opportunity, feasibility, competitiveness, and leverage. Recent research suggests that business opportunity and feasibility are most important in judging strategic options ex‐ante, whereas competitiveness is a good predictor ex‐post.