The Art of Innovation

Outsourcing Innovation

Why do companies outsource their creative and design functions? Experience points to four main reasons:

1. "Capacity" – The number of ideas that they require is more than they can afford to generate internally.
2. "Speed" – They could do it themselves, but they need it done faster.
3. "Expertise" – The level of expertise in a certain area is not high enough and therefore, need outside help.
4. "Innovation" – They want partners who can think outside the box.

In recent years, innovation has become the primary factor. During that shift, IDEO, the heralded innovation company, has refined its creative methodology, which follows these steps:

• Understanding – "You must understand the market, the technology, the client and the perceived constraints affecting the problem." While the constraints may be challenged later in the process, beginning with a firm understanding is important.
• Observation – Watch the people who are affected and study their behavior toward the issue at hand. See where their needs are going unmet...