Debunking the myth: Innovation isn't just about building new products and technology
When most people think of innovation, they picture a team of engineers or designers huddled around a workbench, tinkering with a new gadget or software application. While this image isn't entirely inaccurate, it only captures a small part of what innovation truly entails.
What people think innovation is
The common perception of innovation is that it's all about building new products and technology. We often associate innovation with groundbreaking inventions like the iPhone, self-driving cars, or artificial intelligence. While these are certainly examples of innovation, they represent only the tip of the iceberg.
It's easy to see why this myth persists. After all, new products and technologies are tangible and easily observable. They make for great headlines and can generate a lot of excitement among consumers and investors alike. However, focusing solely on product and technology development can lead companies astray and cause them to overlook other critical aspects of innovation.
What innovation really is
At its core, innovation is about creating value for customers and the business. It's about identifying unmet needs, solving problems, and delivering solutions that make people's lives better or easier. While new products and technologies can certainly be a part of this process, they are not the only way to innovate.
Innovation can take many forms, from improving existing products and services to creating entirely new business models. It can involve changes to processes, pricing, distribution channels, or customer experience. The key is to approach innovation with a broad and open mind, rather than limiting it to a narrow set of activities.
Get to know your customer
One of the most critical aspects of innovation is understanding customers' needs, preferences, and behaviours. This requires a deep level of empathy and curiosity, as well as a willingness to listen and observe.
Innovative companies invest heavily in customer research, using a variety of methods such as surveys, interviews, focus groups, and ethnographic studies. They seek to understand not just what customers say they want, but also what they actually do and how they behave in real-world situations.
By gaining a deep understanding of customers, companies can identify opportunities for innovation that might not be immediately obvious. They can also avoid the pitfall of building products or features that customers don't actually need or want.
Fail quickly and cheaply
Another key aspect of innovation is experimentation and testing. Rather than assuming that an idea will work, innovative companies seek to validate their hypotheses through rigorous testing and data collection.
This can involve creating prototypes, running pilot programs, or conducting A/B tests to compare different versions of a product or service. The goal is to gather evidence and feedback that can inform decision-making and help refine the innovation over time.
Experimentation also allows companies to fail quickly and cheaply, rather than investing significant resources into an idea that may not pan out. By testing ideas early and often, companies can identify and address potential issues before they become major problems.
Killing off ideas
One of the most counterintuitive aspects of innovation is the importance of killing ideas. While it may seem like the goal of innovation is to generate as many ideas as possible, the reality is that most ideas are not worth pursuing.
Innovative companies are ruthless about killing ideas that don't show promise or align with their strategic goals. They recognise that every idea requires resources to develop and test, and that pursuing too many ideas can spread those resources too thin.
By killing ideas early in the process, companies can focus their efforts on the most promising opportunities and avoid wasting time and money on dead ends. This requires a culture that values experimentation and failure, and that doesn't punish employees for suggesting ideas that don't work out.
Putting the ‘build’ in its rightful place
Of course, building new products and technologies is still an important part of innovation. But it's important to recognise that this is just one piece of the puzzle, and that it should be informed by a deep understanding of customer needs and rigorous testing and experimentation.
When companies do develop new products and technologies, they should do so with a clear sense of the value they are creating for customers and the business. They should also be prepared to iterate and refine their offerings based on customer feedback and changing market conditions.
Ultimately, innovation is about creating a culture that values curiosity, experimentation, and continuous improvement. It's about empowering employees to think creatively and take risks, while also providing the structure and resources needed to turn ideas into reality.