Keep working harder and smarter, but recognize you’ll move the needle less and less in a system of diminishing returns… like wringing out the last bit of productivity or quality. But when you focus on understanding customer needs better than competitors, your insights and new product innovations—and resulting revenue—will keep coming. Increasing returns. A wonderful system to work hard and smart at.
More in white paper, Catch the Innovation Wave.
If your NPD teams are confident of customer needs, your projects will go faster for 3 reasons: 1) Bad ideas are killed quickly, freeing up resources. 2) Dead-end detours and diversions are avoided. 3) Hesitation—with second-guessing, delays and debates—is squelched. As Netscape founder, Jim Barksdale, said “If we have data, let’s use it. If we have opinions, let’s use mine.” B2B innovators can find the data they need in Market Satisfaction Gaps.
More in white paper, Market Satisfaction Gaps
Over the years, we’ve seen business leaders question the employee time and airfare bills needed to interview customers in the front-end of innovation. But how much R&D and marketing was squandered developing a product that made customers yawn? That’s a question that should probably be asked more often.
More in white paper, Guessing at Customer Needs
Jeff Bezos believes this is a more important question than “What’s going to change in the next 10 years?” In the world of new product development, we find that customer outcomes—desired end results—tend to be more stable over time than supplier solutions. So instead of validating your solutions during customer interviews, seek to uncover and understand the most important, unmet customer outcomes. Then pursue these stable targets with your solutions.
More in video, New Product Blueprinting—the Future of B2B Innovation
We see three areas where leaders can have a greater negative impact on innovation than positive: 1) organizational friction (travel bans, spending freezes, hiring delays, excessive re-orgs, etc.) that slow innovation to a crawl, 2) spreading too few resources over too many projects so that nothing moves briskly, and 3) short-changing the front-end of innovation, so that a clear picture of customer needs is lacking. Companies pay a heavy price for keeping such leaders in place.
More in article, Accelerate New Product Innovation
“Proven right” breeds confirmation bias; “be right” inspires a search for truth. In new product development, “proven right” seeks to validate the supplier’s ideas; “be right” explores customers’ worlds seeking what others have missed. “Proven right” results in squandered R&D spending and missed opportunities; “be right” in delighted customers, premium pricing, and pleasant financial review meetings.
More in e-book, Leader’s Guide to B2B Organic Growth
During the Vietnam war, the US was still using its cold war approach of “problem as given”… applying prescribed responses for a long list of scenarios. This was a disaster in the face of evolving threats. Now their protocol is “problem as understood”… developing solutions only after the problem is well defined. Is your company using “cold-war innovation,” or does it place a high priority on learning what customers truly want before developing products for them?
More in e-book, Leader’s Guide to B2B Organic Growth
The difference between speed and velocity is that only velocity has a direction associated with it. Many in business are focused on going as fast as they can… in any direction. Avoiding solid front-end-of-innovation work because you want to develop your new product faster is a prime example. Sure, you launched your product quickly… but no one bought it, because you failed to first understand customers’ needs.
More in e-book, Reinventing VOC for B2B
Years of research by Booz Allen Hamilton have shown no correlation between how much you spend on R&D and how well you perform over the long term. A better strategy? Understand what customers want… so your R&D doesn’t develop great cures for no known diseases.
More in article, The Inputs to Innovation for B2B
In Level 1, you start with your ideas and launch products you think customers will want. In Level 2, you still start with your ideas, but “validate” them with customers. In Level 3, you start with customer needs, using divergent and convergent interviews. You uncover a full range of outcomes and only work on those customers care about.
More in white paper, Guessing at Customer Needs (page 7).