In concentrated B2B markets, the top ten buying accounts may represent 50-100% of the buying potential. Unlike B2C—with deep pools of potential prototype testers—B2B suppliers can wear out their welcome by lobbing sloppy “minimum viable products.” If you use Lean Startup, be sure to begin with proper B2B customer interviews.
More in white paper, Lean Startup for B2B (page 7).
A fine innovation metric is the vitality index… % of total sales from new products (usually launched in the last 3 or 5 years). But it doesn’t tell you why your % is going up or down, does it? Sure, you can see which new products contributed… but you need to uncover the underlying reasons driving results. Otherwise you’re just watching from the bleachers.
More in article, 3 Problems with Innovation Metrics (Originally published in B2B Organic Growth Newsletter).
If your new product development process begins with “idea generation,” is it your idea… or your customers’? If you start with your idea, you probably won’t understand customer needs until the end… by seeing if they buy your new product. Why not flip your approach and start with customer needs? Unless you’d rather your R&D kept guessing at customer needs.
More in e-book, Reinventing VOC for B2B (page 4).
Problem 1—What’s the right question?—focuses on market needs. Problem 2—What’s the right answer?—is all about your solutions. Most companies put 90+% of project spending into Problem2, yet Problem 1 causes most new product failures. Hmmm… are you sensing a possible competitive advantage here? Will you explore it further? Will you seize it?
More in white paper, Catch the Innovation Wave (page 4).
The data are in, the studies are done, and—put simply—customer-engaging VOC improves your bottom line. One study on innovation by Booz & Co. found this: Suppliers who directly engage customers enjoy three times the profit growth vs. those that do not. Want huge profit growth? Engage your customers. It’s not hard, but it is a different approach… even innovative.
More in article, Why Advanced VOC Matters (Originally published in B2B Organic Growth Newsletter)
When developing a product, you know what you know (facts)… what you think (hypotheses)… and what you don’t know (gaps). But breakthroughs usually come from what you didn’t know you didn’t know. Only your customers know this, so you must let them guide you. This provides the spark of innovation, which seldom occurs with old-fashioned supplier-led interviews.
More in e-book, Reinventing VOC for B2B (page 3)
The average company only has a 25% success rate after it finishes its front-end work. With Six Sigma success, you’ve got three defects per million attempts… while your new product development is stuck at three defects per four attempts. Can you think of any other area in your company with this level of waste? Don’t let your competitors tame this frontier first.
More in white paper, Catch the Innovation Wave (page 3)
New Product Success is a metric for current projects. Learning Success—which measures skill-building progress—is a metric for future projects. Most companies just consider New Product Success. Worse, they only look at ultimate metrics, e.g. sales. If they also used intermediate metrics, they’d have enough time to apply what they learned from these metrics.
More in article, 3 Problems with Innovation Metrics. (Originally published in B2B Organic Growth Newsletter)
Analysis looks for what has been done wrong; discovery for what could be done right. Failing to discover opportunities is a costly error. Paradoxically, it is most often forgiven. In fact, if your team fails to develop a blockbuster because it missed a critical customer need, no one will even notice. At least not until a competitor does a better job.
More in executive briefing, Should Your Stage-Gate® Get a No-Go?
Unlike innovation, quality and productivity apply to current operations and yield diminishing returns. What do you do after you reach zero defects… or your factory is being run by the proverbial “man and a dog”? (The man feeds the dog; the dog bites the man if he touches the controls.) Customer-facing innovation is different. There is no limit. Just look at Apple Computer.
More in white paper, Catch the Innovation Wave (page 2)
It was designed to manage the interface between project teams and your company… for portfolio analysis, resource planning, risk reduction, tracking, etc. Fine, but you also need to improve the interface between teams and customers. Competitive advantage in customer-facing innovation requires skills and tools your competitors lack.
Learn more about B2B innovation at www.theaiminstitute.com
In the 1970’s, Detroit automakers didn’t realize they were in a battle for quality… but Toyota did. Do you know if your company is in a battle for innovation? One way to find out is to wait until a competitor upends your market with a blockbuster. Another is to start building innovation capabilities first.
More in white paper, Catch the Innovation Wave (page 3)