The Innovation Game
In business, it is often thought that the secret to success is to deliver what your customer wants. Therefore, the logical solution is to ask your customer.
Unfortunately, things are not that simple. Often times, customers don't know what they want, and companies that soley rely on customer feedback to determine their new product pipeline inherently fail at the innovation game.
For example, if you asked a person in the 1800's what they really wanted in a transportation device, they would probably reply, "a faster horse." And in response, a horse seller would innovate his product line by feeding his horses a better diet, or putting them on a more intensive training regiment in attempts to create the "faster horse." Using this methodology of thinking, there would be no way the horse seller would move his new product line towards the development of an automobile, which would eventually displace horses. On the same note, the consumer would probably never envision a four-wheeled rolling steel carriage capable of carrying them quickly from point A to point B. Both would fail at the innovation game.
More recently, in the 1970's, if you asked a secretary what they wanted in a device that would improve their lives, they would probably respond, "a more versatile typewriter, that would allow them to correct mistakes on the fly." The typewriter maker, in attempts to satisfy their customer's request would look towards adding a "white-out" feature to their typewriter, and call it a day. Both parties would fail to see the potential of the computer (which was originally considered to be a big, clunky adding machine). And the computer would eventually displace both secretaries and typewriters, effectively putting both the customer and the manufacturer out of business.
I'm not berating the customer or the manufacturer - just pointing out how hard the innovation game is. In both examples, both parties acted rationally (to the best of their abilities, yet both parties failed). This is because customers don't know what they want (they only know what they like or dislike), and on the flip side, manufacturers have no crystal ball for telling the future.
Sure, ask the first person whether they like the automobile, fax machine, or cell phone, and they will nod fervently (with an emphatic YES), but ask them what they will need in the future, and they will either shrug their shoulders (or settle for the status quo).
In short, businesses that continue to succeed need to think out of the box. They need to take giant leaps, not baby steps - and therefore, if you're a manufacturer that's just plodding along, you might need to "think differently" (to paraphrase Apple's old slogan). This seems pretty self evident, but it actually isn't - that's why so many successful businesses fail.
Leading manufacturers need to anticipate what customers want in the future, before they even think it. They have to innovate, and take the leap of faith that their customers will eventually move in that same direction - and that's the difference between good and great.
Unfortunately, things are not that simple. Often times, customers don't know what they want, and companies that soley rely on customer feedback to determine their new product pipeline inherently fail at the innovation game.
For example, if you asked a person in the 1800's what they really wanted in a transportation device, they would probably reply, "a faster horse." And in response, a horse seller would innovate his product line by feeding his horses a better diet, or putting them on a more intensive training regiment in attempts to create the "faster horse." Using this methodology of thinking, there would be no way the horse seller would move his new product line towards the development of an automobile, which would eventually displace horses. On the same note, the consumer would probably never envision a four-wheeled rolling steel carriage capable of carrying them quickly from point A to point B. Both would fail at the innovation game.
More recently, in the 1970's, if you asked a secretary what they wanted in a device that would improve their lives, they would probably respond, "a more versatile typewriter, that would allow them to correct mistakes on the fly." The typewriter maker, in attempts to satisfy their customer's request would look towards adding a "white-out" feature to their typewriter, and call it a day. Both parties would fail to see the potential of the computer (which was originally considered to be a big, clunky adding machine). And the computer would eventually displace both secretaries and typewriters, effectively putting both the customer and the manufacturer out of business.
I'm not berating the customer or the manufacturer - just pointing out how hard the innovation game is. In both examples, both parties acted rationally (to the best of their abilities, yet both parties failed). This is because customers don't know what they want (they only know what they like or dislike), and on the flip side, manufacturers have no crystal ball for telling the future.
Sure, ask the first person whether they like the automobile, fax machine, or cell phone, and they will nod fervently (with an emphatic YES), but ask them what they will need in the future, and they will either shrug their shoulders (or settle for the status quo).
In short, businesses that continue to succeed need to think out of the box. They need to take giant leaps, not baby steps - and therefore, if you're a manufacturer that's just plodding along, you might need to "think differently" (to paraphrase Apple's old slogan). This seems pretty self evident, but it actually isn't - that's why so many successful businesses fail.
Leading manufacturers need to anticipate what customers want in the future, before they even think it. They have to innovate, and take the leap of faith that their customers will eventually move in that same direction - and that's the difference between good and great.
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