The document presents a framework for creating an effective innovation canvas, addressing essential components such as identifying important problems, developing unique solutions, and formulating a theory of change. It emphasizes the significance of a strong team, traction metrics, cost structures, funding strategies, and risk management to successfully scale a solution from direct to systemic changes. The guide aims to assist innovators in systematically evaluating their approach and improving their chances of success.

1. Effective Innovation Canvas
@jakubsimek| Pontis Foundation | Sote Hub
Important Problem
Why is it important?
Why is it solvable?
Why is it neglected?
Unique Solution
Whatare strengthsandweaknessesof
yourcompetition?Howdo youplan to
satisfy yourcustomersandmaketheir
experiencemore pleasantwhilereducing
andsimplifyingsomefeaturesvia
technology?
Are yousatisfyingneedsordesires of your
customers?(Needsarefinite and
businessesthatsatisfy themaremore eco-
friendly and responsible.)
Theory of Change
Whatactivities do youneedto performand
whatoutcomesdo youneedto achieveto
scale yoursolutionfrom1. Direct Service (a
local restaurant,brickandmortarshop)
through2.Scaled Service (onlinestore,
internationalfranchise) intoa3. Systems
Change(astateor majorcorporationsadopt
yoursolution) and/or4.FrameworkChange
(introductionof humanrights;internetmade
info free; blockchainsfreedthe sharingof
financialassets)?
Key Metrics
Whatare the importantindicatorsthat
showyouareon a righttrack andyour
hypothesisiscorrect?
Traction
Whathaveyoudoneso far?Whatyou
haveto do in 3 -6-12 months?Whatare
youstuckat?
How to get/ which customers?
Howto get the particularsegmentsof
customersyouneedto attractto validate
yourhypothesisandtestyoursolution?
Team
Why are you passionateabouttheproblem?
Why do youtrusteach otheras cofounders?
Whatare yourstrengthsandweaknesses?
Cost Structure
Whatdo youneedto operateper month
nowandwhatdo youplanto spendin the
next12 months?
Fundingand Revenue
Howwill youget investmentandwhatpartof
yourmonthly orannualcostsdo youhave
coveredby monetizingyoursolution.Howdo
youplanto capturethe valueyoucreate?
Risk and (Anti)Fragility
Howmany variouscustomersdo youplanto
have?Are youableto earn money fromthe
beginningwhilebeing a small startup?

2. Effective Innovation Canvas
@jakubsimek| Pontis Foundation | Sote Hub
Explanation and Guide
1. Important Problem– Thispart usesthe Important-Tractable-Neglected(ITN) Framework.
Why isit important? Rate iton a scale from 1 to 10. Close youreyesandtry to picture a dustspeckand thentry to picture anapproachingmeteorite. A dustspeck wouldbe
1 and a large meteorite wouldbe 10.
Why isit solvable?Some problemsjustneedmore investment,othersare complex andbasedonrelationshipsandcontext.There mightnotbe a single “silverbullet”,nor
an easyexplanation, nora setof actionsthat we can pursue toachieve change. Rate iton a scale from1 to 10.
Why isit neglected? Rate it1-10. Maybe only100,000 euroswasinvestedtotackle thisproblemsofaror maybe only5 companiesand20 scientistsare workingonsolving
it inthe whole world.Ormaybe there are thousandsof companiesalreadycompetinginanarmsrace and investorsthrewtensof billionsinhope to dominate the field.
2. Team – Strong motivatedandexperiencedteamandtrustamongcofoundersismaybe the mostimportantasset.Itmightkeepyougoingwhenyourearlyprototypes
and solutionsmightstruggle. Whyare youpassionate aboutthisproblemandwhyare yousuitable forthischallenge? Whatare yourstrengthsand weaknesses?
3. Unique Solution– Do yourresearchabout alternative solutionsandwrite downtheirstrengthsandweaknesses.Trytothinkwhatfeaturestoeliminate,andstill keep
customershappy,before addingnewones.M-Pesaeliminatedthe needtoowncreditcards;blockchainseliminatedthe needtotransferfinancial value viainstitutions.
Teslaeliminatedthe needforcombustionengine andreducedcarparts10x while still keepingthe cardesignbeautifulfora mainstreamandambitiouscustomer.
4. Traction – What have youdone so far? What youhave to do in3 -6-12 months?Whatare youstuck at?
5. Cost structure – What do youneedto operate permonthnowand whatdo youplan to spendinthe next12 months?
6. Theory ofChange – What activitiesdoyouneedtoperform andwhat outcomesdoyouneedto achieve toscale yoursolutionfrom 1.DirectService (alocal restaurant,
brickand mortar shop) through2. ScaledService (online store,internationalfranchise) intoa3. SystemsChange (astate ormajor corporationsadoptyoursolution) and/or
4. FrameworkChange (introductionof humanrights;internetmade infofree;blockchainsfreedthe sharingof financial assets)?Youneedresources,change roles,rules,
relationshipstoachieve innovative results (5RSystemsChange).
7. Fundingand revenue – How will yougetinvestmentandwhatpartof your monthlyorannual costsdo you have coveredbymonetizingyoursolution.How doyouplan
to capture the value youcreate?
8. KeyMetrics – What are the importantindicatorsthatshow youare on a right track and yourhypothesisiscorrect?
9. How to get/which customers?How to getthe particularsegmentsof customersyouneedtoattractto validate yourhypothesisandtestyoursolution?
10. Risk and (Anti)fragility–90% of newbusinessesfail therefore the strengthof the teamandunderstandingof the problemissoimportant. Butyoucan alsoactively
decrease yourfragilitybyhavingmanyvariouscustomersinsteadof asingle large one,orbystartingto earn revenue earlyandnot focusonlyon winning alarge chunkof
the market.