Exploring Problem Finding and Formulation in Innovation Strategy: A Qualitative Study

Abstract This study explores problem finding and formulation skills in the innovation process in organizations in the current context. Although it is crucial to find the problem before the solution, this stage is still little investigated in the literature and in the practice of innovation strategy. We used a qualitative methodology, with an exploratory approach, through semi-structured interviews with business managers. The results show that the problems are explored based on design thinking approaches. However, the absence of a scientific method compromises the precise identification of the real problem. There was a belief in knowing the root cause, which is not always resolved by cost-benefit take-offs, or the problem always being formally formulated. The impediments to exploring problems with a scientific method and due rigor are the result of the status quo, limited time, and resources. These challenges encourage a hasty bias. There was awareness of the impact of solving the wrong problem, resulting in a high opportunity cost. Limitations include the focus on a group of service companies and the size of the sample, making further empirical research necessary to validate and extend the findings. This research contributes to the literature on strategy and innovation, emphasizing the importance of finding and formulating the problem with a scientific method before solving it, as a crucial element in innovating and creating value. We highlight the relevance of this study to the practice of innovation strategy and well-informed decision-making, directly impacting the creation of value and the sustainability of organizations.