The formula is based on identifying things that customers need, how adequate the current solution is, how often the customer has this need, and how important this need is. To quantify your opportunity, ask yourself the below three questions:
1. (Importance) On a scale of 1-5, where 5 is very important and 1 is not at all important, how important is it to the customer that this need gets met?
2. (Frequency) On a scale of 1-5, where 5 is frequently and 1 is infrequently, how often does the customer have this need?
3. (Frustration) On a scale of 1-5, where 5 is very frustrated and 1 is not at all frustrated, how frustrated is the customer with the current solutions that are available to address this need?
Now that you have these three scores, plug them into the below formula:
(importance + frequency) x frustration = size of opportunity
You can either plug in the numbers based on your gut feel or you can be a bit more scientific about it and survey a large number of customers asking them the above three questions. After applying this formula to a selection of potential opportunities you could solve, it will become obvious where you should focusing our time.
Thanks to inventium for this and other insightful blog posts on innovation.
See on www.inventium.com.au