Transform Your Business into an Innovation Powerhouse
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Chapter 1: The Essence of Innovation
Innovation is often born from necessity, as the saying goes. Can we turn the creation of new products into a repeatable process? Absolutely! In this guide, I will outline a step-by-step approach to achieve this.
A year ago, I was in the midst of relocating to a new apartment. In my home country, we joke that moving twice is as chaotic as a fire. I had a slew of tedious tasks to manage—packing, unpacking, and minor repairs. In my quest for suitable tools and packing materials online, I stumbled upon a treasure trove of ingenious solutions.
I found individuals utilizing simple, economical, yet remarkably effective gadgets. They managed to shift furniture without damaging floors, drove nails without injuring their fingers, and drilled holes in walls with precision. In comparison, I felt like a primitive human wielding a mere stone tool.
This led me to ponder, “How do they do it? What inspires such creativity in developing straightforward yet effective tools? Why didn’t I think of these fantastic inventions?”
Daily, startups and established companies endeavor to develop new products—be it an AI-powered app or a vegetable slicer. They constantly wonder, “How can we enhance our creativity and produce something novel?” A valuable tool called 'lateral marketing' could be the answer.
Problem Identification
As Abraham Maslow famously stated, if your only tool is a hammer, every problem appears to be a nail. Why don’t we simply wake up with brilliant product ideas? Our brains are designed for pattern recognition, a trait that once helped ancient hunters survive.
Patterns allowed them to identify prey and distinguish between safe and dangerous plants, but this ability can hinder modern inventors from thinking outside the box.
When you examine your product, what do you see? Likely, you see… your product. While you might spot its shortcomings, recognizing potential areas for improvement or transformative changes can be challenging. Your perception is limited by the patterns your mind has formed. However, you can break free from these patterns to foster innovative thinking.
Solution — A Structured Guide
In 2003, Philip Kotler introduced his book, Lateral Marketing: New Techniques for Finding Breakthrough Ideas, inspired by the concept of Lateral Thinking developed by Edward de Bono in 1967. Kotler proposed addressing product creation or modification at three levels:
- Market Level
- Product Level
- Marketing Mix Level
Market Level
The market is where a product meets its customers. Kotler identified six dimensions to consider:
- Need or Utility: What problem do customers aim to solve with this product?
- Target Consumers: Who are the potential customers?
- Time: When do they typically purchase the product?
- Place: Where do they usually buy it?
- Situation: What circumstances prompt the purchase?
- Experience: What emotions accompany buying and using the product?
For instance, consider reinventing a hammer. Explore these six dimensions as follows:
- Need or Utility: Beyond driving nails, what other uses could a hammer serve? Could it swat mosquitoes? (Just a thought!)
- Target Audience: Traditionally, hammers are marketed to men. What if women or children became key customers?
- Time: Is there a demand for hammers at unconventional times, like late at night?
- Place: While hammers are typically sold in stores or online, could they be marketed at train stations?
- Situation: Typically, hammers are bought for work. Could we market them as unique gifts?
- Experience: Consider associating hammers with the experience of homeownership.
Some of these ideas may seem far-fetched, but remember, many innovations initially appeared impractical.
Product Level
Choose a specific feature of your product and consider:
- What if a hammer had scissors instead of a handle?
- Could it be combined with a drill?
- How about a hammer designed to extract nails?
- Envision a hammer without its usual handle or head.
- Is there a market for a hammer that must be held by its head?
Marketing Mix Level
At this stage, examine three aspects of the marketing mix: pricing, distribution, and communication. Utilize the six techniques mentioned before:
- Substitution
- Combination
- Inversion
- Elimination
- Exaggeration
- Reordering
For example, regarding Pricing:
- Can you substitute traditional pricing models with subscriptions for hammers?
- What about combining pricing with social media promotions?
- Inversion: Could you offer to pay customers for using your hammers?
- Elimination: Is it feasible to give hammers away for free?
- Exaggeration: Would customers pay $3000 for a premium hammer?
- Reordering: Could customers receive hammers for free but pay per use (usage-based pricing)?
Repeat this exercise for Distribution and Communication.
Conclusion
While no strategy guarantees the creation of a groundbreaking product, these exercises can help unlock your creativity and shift your perspective. If you need assistance in developing a new product or enhancing an existing one, feel free to reach out to discuss potential collaboration.
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For additional insights, check out: Seven Deadly Sins of Strategy.
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