The core of innovation is BOTH industry AND market agnostic – here is why
I personally believe that the core of innovation is BOTH industry AND market agnostic. Why do I believe that?
As line manager I have been leading/facilitating innovation work in two completely different industries: consumer goods and telecom and as consultant I have been supporting companies from a wide spread of industries around innovation. I’ve been lucky to have worked with all aspects of innovation, from accelerating innovation across a company to generating new business, from physical products to digital services, from idea to launch, from local to global aspects and have done many insights. However, there are three main insights that make me believe that the core of innovation is industry and market agnostic.
INSIGHT #1: THERE IS A HUGE DIFFERENCE BETWEEN AN INVENTION AND AN INNOVATION.
I have heard more than once people call me “Uppfinnar Jocke” (Gyro Gearloose in English) due to my job. But in all honesty, I have never worked directly with inventions. A common pitfall is not to understand the difference between invention and innovation. An invention is an idea that works, an innovation is an idea that works, fulfils customer needs and is financially/commercially valid. An invention is not per default an innovation - but can with a lucky shot be that. An innovation doesn’t per default need inventions. A side note, if you have an innovation that either leads to inventions and/or uses inventions… Well, disruption here we come!
INSIGHT #2: CUSTOMERS MOTIVATIONS WITHIN A CATEGORY DON’T DIFFER ACROSS THE GLOBE.
If you like me have been privileged to work with customers (include consumers in that concept) all over the world, I guess you have come to the same conclusion. With an understanding of customers’ deeper motivations, you realize that desires, tensions and unmet/unarticulated needs are the same in a category across the globe. Please note that I’m not talking about for instance lack of capabilities (like financials) as a pain-point. However, the way you fulfil/meet these desires, tensions and unmet needs differs, i.e the execution, is market specific.
INSIGHT #3: WHAT MATTERS THE MOST ARE EXPERIENCES (BRAND, CUSTOMER, USER).
We live and act in an Experience Economy hence it’s all about experience innovation. Technology and industry specific things are “only” different types of enablers to generate great experiences. Just to be clear, the enablers are very important ones. Again, it comes down to inside out vs outside in. Too much focus on inside out leads to industry as well as technology focus and you dig where you stand (present market and competitive set) and miss out the real, present and future, customer needs.
These 3 insights make me believe that the core of innovation is on one level industry agnostic and on another level market agnostic (for a category). If you combine that belief and use an outside in approach you will not only search for customer needs but also do hypotheses, you will not limit yourself to your present market, you will expect different competition (which is healthy) and you can discover use of technology in ways you never thought of leading to both innovations and for that matter inventions.
/ Joachim Rask
