Ideation is the creative process of generating new ideas, which can be accomplished through a variety of ideation techniques, such as brainstorming and prototyping. If done right, ideation is what helps founders and executives determine the right problem to solve and how to solve it.

Ideation plays a critical role in the design thinking process—a concept popularized by global design firm IDEO. The goal of design thinking is to empathize with customers, uncover the non-obvious pain points they’re experiencing, and learn more about how the current solutions in the marketplace aren’t meeting users’ needs. It’s often in those gaps where companies can spot the best business opportunities.

“Ideate” is the third phase of the design thinking process. It follows “Empathize,” in which companies observe and engage with users to discover their frustrations and needs, and then “Define,” where organizations begin to solidify the problem—not as they see it, but as customers experienced it. From there, ideation can begin, and is when companies start to leverage different techniques to come up with solutions to the problem.

“Where you have a gap right now is to do the upfront better,” Marion says, emphasizing the importance of ideation. “That entails giving employees the skills to better understand opportunities, to apply different methods of getting information from potential customers, and to achieve better brainstorming.”

An example of this is IDEO’s approach to reimagining the shopping cart. The firm sent out two groups to learn firsthand what the people who use, make, and repair shopping carts think about them. The groups interviewed experts and walked through stores, taking photos and jotting down notes of how people were actually interacting with the carts. Were customers maneuvering them down every aisle, or could they benefit from a removable basket? What child safety features needed to be implemented?  

After gaining customer insights, the two teams were able to better brainstorm, because they had personally experienced the customers’ pain points and knew which areas to focus on, such as maneuverability, child safety, shopping behavior, and maintenance cost. When IDEO landed on a final design, they knew they were closer to solving the right problems, because they had put the customer first.

How to Successfully Implement Ideation Techniques

Before employing a particular ideation technique, companies need to consider overall best practices. For example, is there a diverse group of employees in the room?

Tom Kelley, a partner at IDEO, established “The Ten Faces of Innovation,” highlighting the roles people can play in an organization to foster innovation and boost creativity. Personas include “The Hurdler,” who tackles problem-solving head-on, and “The Caregiver,” who works to understand and form relationships with each individual customer.

“Generally, if you’re looking for better ways to ideate, you need to have a variety of people involved,” Marion says. “It helps to look at things from a different vantage point.”

Another best practice is to establish constraints. What are the client’s objectives? Are you working within a particular budget? How much time should you dedicate to brainstorming? While you don’t want to stifle employees’ creativity, you also want to stay focused.

“Often, brainstorming is done by too many people over too long a period of time,” Marion says. “You can’t go into a room with no framework for what you’re working on. You need some type of challenge question to frame the discussion.”

With constraints established, wild ideas can still flow—and should be encouraged. During the ideation phase, there are no “bad” ideas. The most outlandish concept could be the right solution, or at least inspire and influence other team members. The goal, according to Marion, is “to have the biggest pool of ideas and opportunities that you can.”

That need to cast a wide net has inspired some organizations to pursue open innovation efforts, in which companies, universities, individuals, or agencies collaborate to create a product or service. Each partner shares the risks and rewards that come from that partnership and gains access to internal and external ideas.

Legacy brands like General Electric (GE) have launched Open Innovation Challenges to source new ideas to pressing problems, such as water scarcity. The company will often offer cash prizes, development grants, or even the chance to become a GE supplier to the individuals or organizations with the best solutions to the challenge.

Another example of open innovation is internal venturing, in which organizations invest time, money, and resources to establish a new business within the company, or acquire external startups that can benefit the company.

Liberty Mutual’s Solaria Labs is exploring both opportunities. The insurance brand rented out co-working space in Boston’s WeWork buildings where employees can focus on developing “disruptive ideas” and turning those ideas into products. Liberty Mutual has also started investing in early-stage companies with hardware, software, or business models that are reshaping the insurance industry.

“You need perspective from the outside,” Marion says, explaining the value of open innovation. “Having a strong innovation network and ecosystem is vital. You want to expose your employees to different ways of innovating and sourcing new ideas.”