Innovation and the Base Rate

Innovation and the Base Rate

The base rate is the underlying probability unconditioned by prior events, and failing to consider it can lead to wrong conclusions. For example, while most people think driving away from home is safer because three out of four car accidents happen within 25 miles of home, the base rate tells us that people spend 90% of their time driving within 25 miles of home, making it safer. Likewise, when considering iPhone accidents, the base rate can help identify opportunities for innovation. In this case, understanding the base rate can help identify features, design aspects, and user habits that make iPhones safer in certain areas.

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More Innovation Resources:

Five Principles of Innovation Measurement

Five Principles of Innovation Measurement

Innovation measurement is vital to improving management effectiveness and performance. Here are five principles for defining innovation measurement.

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How to Refine and Develop Ideas – The Doer’s Guide

How to Refine and Develop Ideas – The Doer’s Guide

Refining and developing ideas is an essential step in the innovation process. This guide offers actionable advice on how to do it right, with a focus on the processes and tools needed to turn raw, high-level ideas into actionable concepts that can be implemented.

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Innovation or Not? - Domino's Hotspots

Innovation or Not? - Domino's Hotspots

Domino's Pizza has launched a new feature called "Domino's Hotspots" which allows customers to receive pizza deliveries to non-traditional locations by using GPS coordinates instead of traditional street addresses.

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