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:

What is Innovation Software: Everything you need to know

Innovation software helps businesses manage the innovation process from ideation to implementation. It collects and assesses innovative ideas, engages stakeholders, and measures success.

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Drive Innovation and Focus on Strategic Outcomes that Matter

Planview Portfolios is an enterprise-wide portfolio planning and delivery solution used for project/portfolio management, lean portfolio management, product portfolio management, and enterprise architecture.

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Creating Meaningful Organizations - Learnings from the 2016 Academy of Management Meeting

Creating Meaningful Organizations - Learnings from the 2016 Academy of Management Meeting

The Academy of Management annual meeting discussed the importance of organizations being meaningful, their purpose and worth, and the rise of less traditional organizations.

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