First, is this a good idea? Does it create value for customers? Is the technology required for the idea mature enough for use with real customers? Is the market very competitive? Are there structural barriers to sustain a competitive advantage?
Second, is this a good idea for us? Does it fit with our current competencies? Do we have the knowledge and skill to do this? Does the proposed product/service fit with our brand? Do we have access to the markets, channels, and customers who would want this product or service?
Timothy Morey is right pointing out that Nike+ or Google Street View wouldn’t exist if Nike and Google hadn’t gone beyond their comfort zone. Innovation requires time, effort, money, but it’s what it takes to differ and win in the competition.