Innovation Newsletter
Helping you improve innovation
January 2008
In This Issue
Sign Up
Quick Links
Greetings!

There is much talk about a downturn this year. An economic downturn means we need an innovation upturn. Just cutting costs and trimming back is not enough. The organisations that succeed this year will be those that find new, better, faster, easier, cheaper, more convenient amd more appealing ways to do things. Put innovation at the top of your to-do list!

Sometimes the biggest resistance to innovation comes from the person who should benefit most from it - the customer. Customers can be very conservative. When you come along with an unorthodox new product or service they are often initially unimpressed. Why should the buyer take a risk with your unproven new gizmo? He knows that new products often have bugs and he does not want to be the guinea pig on which you experiment. He is familiar with the current method - why should he change?

Who would want to be the first customer for a fax machine or indeed for a telephone? It seems ridiculous now but selling the first few telephones must have been really difficult. And how about laser eye treatment? How would you find the first person to try it when there was a safe alternative in a pair of spectacles?

The customer is right to be sceptical. You need to find ways to reassure him and to mitigate his risk. At the same time you need early adopters so that you can get some traction in the market, customer feedback and positive references for your innovation. So acknowledge the client's concerns and put offers in place to allay them. You cannot just use your standard terms and conditions for a radical new product. You have to be innovative in your sales approach too.
Bill Buxton, Principal Scientist at Microsoft, argues that most valuable innovations take a long time to develop. He gives the computer mouse as an example that took 30 years to go from first example to mainstream use. He argues that, 'those who can shorten the nose by 10% to 20% make at least as great a contribution as those who had the initial idea.'

'Innovation is not about alchemy. In fact, innovation is not about invention. An idea may well start with an invention, but the bulk of the work and creativity is in that idea's augmentation and refinement.'

One challenging conclusion he draws is that, 'Any technology that is going to have significant impact over the next 10 years is already at least 10 years old.'
Springwise lists some wonderful innovations. For example Japanese company Yosimiya is selling bags of rice printed with a newborn's photo, name and date of birth. The bags are shaped to resemble a swaddled baby. But the key feature is that the bags contain the baby's exact weight in rice. Holding the bag will therefore feel like holding the baby. These personalised bags are priced from JPY 3500 (USD 32 / EUR 22) and available in a wide range of colours and designs.
If you are looking for product or process innovations then you could take inspiration from the middle row of your computer keyboard. The letters A S D represent add, subtract and differentiate. What can you add to your product, what can you take away and how can you differentiate? Let's look at how Ryanair used this approach to take on the established airlines.

Michael O'Leary, the founder of Ryanair looked at the whole business process of passenger flights and built a new model. He started by subtracting all the frills that meant extra cost. He subtracted:
  • Travel agents - you book direct over the Internet so the middlemen and their costs are cut out.
  • Tickets - you show your passport and quote your reference number. Subtracting tickets saves costs.
  • Allocated seating - you choose a seat when you get on the plane - just like on a train or bus.
  • Free drinks and snacks. If you want a drink you have to buy it.
  • Customer care - Ryanair has one-tenth the number of customer care attendants per passenger mile compared to BA. If you have a complaint the answer is generally - 'hard luck but what did you expect with such a cheap flight?'
Lateral thinking involves looking at things in different ways. Here is a fresh perspective on a much loved piece. It may help you enjoy the music in a new way.
A serious security breach. Check to see whether your bank and credit card PIN numbers are on this page. If so anyone can see them. How worrying is that?

Paul Sloane
Destination Innovation

phone: +44.1276.670236
Email Marketing by