Creating Ways To Make An Impact: 70-20-10 Rule

First, you can't focus 100% of your research and development efforts only on your core product lines.

Nottingham Spirk suggests companies follow the same rule Google uses: 70% of your product development efforts should be focused on your core business, 20% should look at adjacent opportunities and 10% should consider areas that are “going to disrupt your business,” as John Nottingham put it.

70-20-10 Product Innovation RulesIf your company doesn't create that new disruptive product, someone else will, Mr. Nottingham said. “If you focus on it (your core business) 100% and not do the next big thing, you're going to lose the 100%,” he said. If Eastman Kodak Co. had followed the 70-20-10 rule, the company might not have been hurt so badly by the rise of digital photography, they said. Years ago, Eastman Kodak should have focused 20% of its development efforts on digital products, which would have been a great example of an adjacent opportunity back when print photography ruled the industry.

As for the other 10%? Maybe the company could have developed something such as Instagram, Bill Nottingham said. Facebook recently bought Instagram for about $1 billion.

To learn more see Crains Cleveland Business

Topics: Business Results, Core, Disrupt, Instagram, Kodak, News, NYTimes, Crains Cleveland Business, Eastman Kodak, Innovation

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