Interesting Innovations that Generate Growth and Shape Markets

Sustainable competitive advantage comes about by developing innovations that solve consumer problems -- innovations that shape behavior and create new markets.
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Every now and then I come across an innovation that makes me stop and think "what a great idea" [or: "why didn't I think of that?"]. It happened again the other night when I was watching television and I saw an ad for PowerMat -- a wireless recharging device that will solve one of the big problems of today: how to find the right cords, and enough power sockets, to charge phones, hand held electronic games, MP3 players and the like. For our family of four, this problem is exacerbated when we travel: four cell phones, at least two iPods, and at least one PSP to charge in a hotel with only two available power sockets, all of which have to compete with the laptop that also needs to be recharged. For some reason, I am the one who usually sneaks around the hotel room at 3 in the morning to switch over devices so everyone is charged up and ready for the next day.

There have been other innovations that have made me stop and think "what a great idea": wheels on suitcases, an idea attributed to Northwest Airlines pilot Bob Plath in 1989; cell phones, which were first available commercially in 1984; Post-it Notes, which 3M started distributing in 1980; the revolutionary Pampers disposable diaper launched by Procter & Gamble in 1961; or the Swifter, another Procter & Gamble invention, launched in 1999.

What binds these ideas together is that all solve consumer problems: finding cords and power sockets to recharge devices, carrying suitcases around airports and hotels, being accessible by phone when away from the office or home, keeping track of pages in a document or book, no-fuss management of diapers, and cleaning surfaces without breaking backs.

Something else common to these ideas is that consumers are not likely to have been able to articulate the solution -- i.e. consumers probably did not say: "I have a problem when I charge electronic devices because I can never find my the right power cords or enough power sockets. Can you develop a wireless recharging device for me?" Alternatively, consumers might have articulated the problem (or PowerMat developers might have observed the problem by watching consumers in action): "I can never find the right power cords to enable me to charge all of my devices". Here, the problem was evident to PowerMat who then set about developing a solution.

I don't know the story behind PowerMat but the process might also have begun with a solution, for example, wireless technology, looking for a problem. In this case, the technology existed but for the solution to succeed, the developers had to link it to a consumer need. Early indicators suggest PowerMat did uncover a substantial unmet need (the problem of recharging) and product reviews suggest that the PowerMat will be successful.

There is something else that binds together the examples I have used. In all cases, they led (or in the case of PowerMat, will lead) to a fundamental change in consumer behavior. If PowerMat is in fact as successful as the early reviews suggest, it will permanently change the way we recharge electronic devices. If PowerMat can stay ahead of the curve as competitors join this new market created by PowerMat, then it will be attributed with having redefined the way we do things.

As companies look for strategies to generate growth that is innovative and exciting ways to redefine the organization post-recession, it is important to think in terms of the problems and solutions framework outlined above. That is, remember that not all consumers can articulate a problem they have with current product offerings. Plus, the majority of consumers are unable to come up with solutions to problems they have with current product offerings. To find exciting ways to generate growth then, marketing managers and new product development teams need to focus on problems, both explicit and latent, and set about finding solutions to these problems. History tells us that sustainable competitive advantage comes about by developing innovations that solve consumer problems -- innovations that shape behavior and create new markets.

Jenny Darroch is on the faculty at the Drucker School of Management. She is an expert on marketing strategies that generate growth. See MarketingThroughTurbulentTimes.com

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