In today’s marketplace, the practice of
innovation isn’t just about creating new products. It’s about discovering
completely new markets that meet previously unknown and therefore untapped
customer needs. And in the age of Internet commerce, the act of innovation
becomes an even greater challenge, awash in a sea of new ideas. Therefore the
drive toward selecting and executing the right ideas and bringing them to
market before your competitors takes on an urgency that has been previously
unknown, yet is sure to increase in the rapidity of its scale in the years
ahead.
As a result, the driving forces behind
innovation – previously technology and control of quality and cost – have
shifted away from issues of efficiency and are now solely focused on the creativity
and growth of the organization toward a future state of competitiveness.
A perfect example can be seen in the process
of mobile payment via smartphone. Mobile payment has provided the ultimate in
convenience to shoppers by preventing them from having to carry around credit
cards and other means of payment. Though it has yet to become the norm for many
businesses, mobile payment’s proliferation among startups is evidence of the
desire to reach consumers through expediency and ease of use.
Five Steps to
an Innovative Solution
Regardless of the size and scope of your
organization, customer-centered companies looking to innovate for the modern
consumer might consider the following approach:
1. Figure out
the problem you’re trying to solve
As with just about any first step, this one
is crucial. Make sure you’re trying to solve the right problem and don’t try to
provide a fix for something that isn’t a priority in the eyes of your consumer.
Do this by asking the right questions and observing, either in focus groups or
by evaluating competitive companies, products and their customers. Asking
simple questions like ‘what does XYZ company do better than us?’ or ‘what’s
missing from our product or service that would make it better?’ can go a long
way towards defining your direction at this stage.
2. Analyze the problem
In this stage, you want to turn the problem
upside down and inside out, extracting every variable and value that causes it
(and remedies it). Focus on how often the problem occurs, how severe it is,
potential causes, and what if any special circumstances impact it. Another
primary focus should be on the timeframe of the problem. How long has it been
occurring? Has it been getting worse with time and, if not, are there factors
that could cause it to do so in the future?
3. Classify
the decision criteria
Clearly defining the desires that lead to
purchase intent, here you want to identify any and every decision that factors
into the decision making process. Which of these criteria is most important?
Will the decision be based solely on existing standards or are there any unique
values that can be used
4. Come up
with more than one solution
There is no substitute for variety and the
goal at this stage is to not leave a more valuable solution on the table.
Therefore, don’t stop at the first solution you come up with. Instead, evaluate
any alternative scenarios as objectively as possible, assessing the pros and
cons of each to ensure that the solution you’re pursuing is the most
competitive and thereby profitable one.
5. Pick the
best solution
After you’ve evaluated all the options and
values gleaned from steps one through four, you have to choose the most
customer-centric solution to move forward with, developing a base of support
within your organization and preparing for any internal or external contingencies.
By Ryan May
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