Customer Value – the Crowned Jewel of Innovation

wolframite

Innovation results in things that are novel, useful, and successful. These things can be products, services, data, information, or business models, but regardless of the flavor, they’re all different from what’s been done before.

And when things are different, they’re new; and that means we don’t know how to do them. We don’t know how to start; don’t know how to measure; don’t know how they’ll be received; don’t know if they’ll be successful.

In the commercial domain, successful means customers buy your products and pay for your services. When customers value your new stuff more than they value their money, they pay; and when they pay it’s success. But first things first – before there can be success, before there can be innovation, there must be customer value. With innovation, customer value is front and center.

How do you come up with ideas that may have customer value? There’s a goldmine of ideas out there, with some veins better than others, and any dowsing you can use to pan the high grade ore is time well spent. There are two tools of choice: one that channels the voice of the customer and a second that channels the voice of the technology.

Your technology has evolved over time and has developed a trajectory which you can track. (Innovation On Demand, Fey and Riven.) But at the highest level, as a stand-in for technology, it’s best to track the trajectory of your products – how they’ve improved over time. You can evaluate how your products improved over multiple lines of evolution, and each line will help you to channel the future from a different perspective.

The voice of your customers is the second divining rod of choice. What they say about you, your company, and your products can help you glean what could be. But this isn’t the same as VOC. This is direct, unfiltered, continuous real time capture of self-signified micro stories. This is VOC without the soothsaying, this is direct connection with the customer. (Sensemaker.)

There are two nuggets to pan for: limiting cant’s and purposeful misuse. You seek out groups of customer stories where customers complain about things your product cannot do and how those cant’s limit them. These limiting cant’s are ripe for innovation since your customers already want them. Purposeful misuse is when the radical fringe of your customer base purposely uses your product in a way that’s different than you hoped. These customers have already looked into the future for you.

Do these ideas have customer value? The next step is to evaluate the value of your diamonds in the rough. The main point here is only customers can tell you if you’ve hit the mother lode. But, since your ideas are different than anything they’ve experienced, in order assay the ideas you’ve got to show them. You’ve got to make minimum viable prototypes and let them use their loop to judge the potential cut, color, clarity, and carat. As a prospector, it’s best to evaluate multiple raw gemstones in parallel, and whatever customers say, even if you disagree, the learning is better than gold.

How can we deliver on the customer value? With your innovations in the rough – ideas you know have customer value – it’s time to figure out what it will take to convert your pyrite prototypes into 24 carat products. There are missing elements to be identified and fundamental constraints to be overcome and backplane of the transmutation is problem definition. Done right, the technology development work is a series of well-defined problems with clear definitions of success. From the cleaving, blocking and cutting of technology development the work moves to the polishing of product development and commercialization.

Innovation can’t be fully defined with a three question framework. But, as long as customer value is the crowned jewel of your innovation work, most everything else will fall into place.

Comments are closed.

Mike Shipulski Mike Shipulski
Subscribe via Email

Enter your email address:

Delivered by FeedBurner

Archives