Double-down on innovation
- 10x Results Partners
- May 8, 2020
- 3 min read
“Innovation distinguishes between a leader and a follower.”
― Steve Jobs
What is innovation? Pause and think about this question for a moment. Most people, when they hear the word innovation, think about new products or new services. But innovation is so much more. It includes pricing innovation, product delivery innovation, supply chain innovation, sales and marketing innovation, and production innovation. So, next time when you have a discussion about innovation with your team, make sure that you look at all possible dimensions of innovation. Maybe it is not a product innovation, but a product delivery innovation that will propel your company to the next level.
10x Results "Million $ Idea"
When thinking about innovation, it is essential that you switch your perspective; Do not look at products. Look instead at (1) which customers do you want to serve, (2) what are their most significant pains/problems, and (3) how can your company’s products and services help relieve their pains.
Doing so will allow you to envision novel products and services that cross the traditional product lines. Look, for example, at the first Palm handheld computers (that were de facto electronic Filofaxes). Now, compare this to the first iPhone that became the first real personal electronic assistant (including the traditional Filofax functions, but also a camera, phone, music, games, apps, and more).
Now that we have established, that innovation is much more than just product and service innovation, we assume that your next question will be: “But where do I get great innovative ideas from?” Well, there are a number of excellent sources that you can tap into.
Checklist: How to get new innovation ideas
From customers: Have structured interviews with your best and your most annoyed customers. If you are brave, you can also do this in a workshop setting (although we would not recommend starting with this). Brainstorm with them about the following questions: (1) What are some of the most significant pains or problems that you are facing today in your company or industry? (2) What ways do you see to resolve or at least ease those pains or problems? (3) What could our company do to help with this?
From competitors: Legally gather competitive intelligence on the innovation pipeline of your competition. Study investor presentations, executive interviews, SEC filings, patent and trademark filings, recent acquisitions, job postings, and news clippings. All of this should give you an excellent feel for your competitors’ plans.
From experts: There are many consultants, academics, and other experts out there who have great ideas. You can get them from books, interview, and articles (e.g., Harvard Business Review). Make use of what is available.
From employees: Create a forum to submit innovative product and service ideas. Make it fun; introduce a friendly competition in which an employee is picked once a quarter as the “innovation mastermind.”
So, how do you create a culture of innovation within your company? Our firm belief is that innovation is not the job of a department within the company, but the responsibility of each and every employee. So your job is to create a culture and processes where innovative ideas are encouraged and valued, and where they are ultimately turned into great products and services for your current and new customers.
10x Results "Million $ Idea"
You are not just competing against your current competitors for your current customers. There is also typically a vast segment of non-consumers. These are people and companies that are currently not yet buying the products and services that you and your competitors are offering. This is a huge area of untapped potential.
Ask yourself the following questions: (1) Why do these people/companies not yet buy our products and services? (2) Can we create a product or service that would better fit their needs (i.e., cheaper, other features, other pricing model, other marketing/selling)? (3) Is it worth going after this opportunity? And if yes, how?
Moving to Action: Questions to Ask Yourself
How can you tap into all sources for innovation (customers, competitors, experts, employees)?
What is the best process to capture, prioritize, and manage those ideas?
How do you ensure that innovative ideas are protected from “mothership bureaucracy” during the incubation stage? Do you need a different organizational setup?
How can you tap into the potential of non-customers? What do you need? How could you serve them?
This insight is a chapter from the book "10x Results: 240+ proven ideas to boost revenues, profits, customer loyalty, and employee engagement". The book is available on Amazon.
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