Opportunity Validation: Testing Concepts with Real-World Evidence

Transforming promising concepts into viable business opportunities requires rigorous validation based on real-world testing and evidence. This chapter examines systematic approaches to opportunity validation, enabling organizations to identify high-potential opportunities with confidence. It begins by discussing the critical distinction between risk and uncertainty, providing guidance for understanding when opportunities can be calculated versus when they require experimental approaches to reduce ambiguity. The chapter details business experimentation methodologies that enable organizations to test hypotheses, validate market demand, and refine value propositions through structured, data-driven processes. It presents a comprehensive opportunity validation process that guides teams through hypothesis formation, experiment design, and evidence interpretation to make informed go/no-go decisions. The rest of the chapter presents practical guidance on building prototypes as validation tools that enable testing from real users. It concludes with a thorough presentation of the concept of the “makerspace” as a special innovation environment that provides the tools, technologies, and collaborative spaces to support the rapid prototyping of hardware or connected devices concepts.