Innovation scoping steps
The key steps for moving from a problem space to defining a clear innovation scope with an outcome-focused challenge statement.
Defining the scope of innovation involves understanding the buying objective, the problem space and the outcomes most valued by impacted stakeholders. This page guides buyers to capture the scope as a challenge statement to support an outcomes-focused market approach.
An outcome-focused market approach means that the end technical solution is not known and the buyer is open to a range of possible solutions that solve a problem or achieve an outcome. The buyer’s intent can be to implement a solution at scale even if the end solution is uncertain.
A challenge statement outlines the scope of the opportunity, the problem to solve, desired outcome and measures of success. Suppliers can respond to the challenge statement by putting forward a range of different solutions and are evaluated based on how well they solve the challenge. It is different from listing specifications, which could lock out innovative solutions.
If you have any trouble accessing a file or document on this page, you can request an accessible version from InnovationProcurement@customerservice.nsw.gov.au.
Key steps for innovation scoping
Discovery
Discovery involves uncovering opportunities for improvement and forming an initial view of benefits to determine if the problem is worth solving.
Sometimes the buyer or product owner has done some discovery of the current situation. They may have evidence to inform the buying team about the needs and priorities of stakeholders and the business.
Any discovery work already done can inform and speed up steps 2 and 3. If discovery hasn’t been done, buying teams can start at step 2, but may need to allocate more time.
The type and level of discovery work needed will vary with each buying project between a small team engagement and a wider discover lite activity.
Shape and frame the problem
This step involves inviting core team contributors to a 2-4 hour* workshop or, if discovery work is needed, a 6 week* discover lite process to run workshops and synthesise insights.
*Duration will vary with project complexity and resource availability.
Hold a problem shaping workshop
The core team and any relevant subject-matter experts (SMEs) should hold a collaboration session to socialise findings from the Discovery step (if already completed) and shape one or more problems.
Outputs of this step include:
- the current problems and opportunities
- who benefits, why and how
- what success looks like for key end-users and stakeholders
- measures of success that are realistic for the proposed outcome
- a ‘how might we’ statement that is narrow enough to give suppliers direction and focus, and broad enough to allow for creative freedom and the possibility of multiple innovative solutions.
Synthesise workshop outputs
The buyer should ensure someone collects material, collates findings and frames the problems to be solved in concise language.
For more complex groups of stakeholders
For more complex problems or projects involving external and/or multiple groups of stakeholders, several sessions may be needed to help shape the problem. In these cases, buyers should factor in more time, effort and resources for the synthesis of findings and framing of problems.
Resources
Digital NSW supports buying projects with innovation specialists or service designers to run a discovery activity that integrates with the innovation procurement methodology. Contact the Test and Buy Innovation advisory team to find out more.
Learn about how to shape and frame the problem to be solved.
Define the challenge statement
Define the challenge statement. Write an outcome-focused innovation scope over an estimated two weeks.*
*Duration will vary with project complexity and resource availability.
Use the problem framing outputs from step 2 to define the challenge statement.
Innovation defines scope through a challenge statement rather than technical requirements. Buyers will use the outputs from the problem shaping workshop and framing activity from step 2 to define the innovation scope.
The innovation scope for a challenge statement should include:
- definition of business objectives
- high level use cases
- one or more concise, actionable ‘how might we’ (HMW) problem statements
- user stories that identify the end users
- desired outcome, success criteria and measures of success.
A challenge statement with additional constraints may also include:
- use cases that identify the actors and interactions
- technical or other types of constraints.
Resources
Learn about how to define the challenge statement.
Resources for defining challenge statements, including sample challenge.