AIM Archives - Month: March 2024

You’ll either get familiar with customer outcomes… or with mediocre growth.

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All growth-oriented innovation starts with customer outcomes. This is what customers want to have happen, with no understanding yet of how it will happen. Nothing a company does can achieve profitable, sustainable growth unless customer value is created… which comes only by improving these outcomes. Want to improve your new product success? Understand your customers’ outcomes in incredible detail.

More in 2-minute video at 22. Immerse your team in customer outcomes

Product development is a footrace… either a customer-reactive or a market-proactive footrace.

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Picture this: A customer tells your sales rep what they want, who hands it off to your R&D. This clever customer tells your competitors the same thing. Terrific. If more than one supplier crosses the finish line, you can forget any price premium. Try this: You choose the race conditions by targeting an attractive market, and exploring its needs better than competitors. This is one reason why market-facing innovation is superior to customer reactive innovation.

More in 2-minute video at 16. Segment by markets for innovation

For successful innovation, you need to “get out” more.

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It’s risky to incrementalize… but “great hope” projects often absorb huge resources and end with a whimper. What’s the answer? Get out more. Spend more time in customers’ worlds to reduce commercial risk. And reduce technical risk through open innovation, tapping into external technologies. You can’t thrive today without external insight. (Hmmm… “exsight”?)

More in 2-minute video at 42. Beware of New Product Incrementalism

Innovators should understand that uncertainty is different than risk.

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If you’re asked to cross an unfamiliar chasm, would it be risky? Hard to say. Until you learn if you’ll face a bridge or a tightrope, you can’t assess risk (probability). You’re just uncertain. Many companies fear risk in an unfamiliar market, when they should map out a plan to reduce uncertainty. This is especially easy to do in B2B markets.

More in white paper, www.UnfamiliarMarkets.com (page 2)