Technology and innovation in one field
creates opportunities for innovation in other fields. These innovations can then lead to
opportunities for more innovations, sometimes even back into the field of the
original innovation. The technology of
the integrated circuit, while innovative in itself, was the catalyst for
massive innovation in countless other industries, products, and processes. Innovations
in materials science and precision on manufacturing equipment that were enabled
by integrated circuits; were then used to innovate micro-circuits.
Opportunities for innovation that did not
exist even a few years ago may now exist because of the innovation that has
happened in other industries. Let’s look
at an example. The first commercially
available smartphone was an IBM product marketed by BellSouth in 1994. The only apps it had were phone, fax, email,
calendar, and calculator. Five years
later, there were a variety of PDAs on the market with Blackberry and Palm
being the dominant players. This now had
operating systems to run programs. In
2007, Apple introduced the iPhone and Android phones were on the market the following
year. Fast forward to today and the
innovation of the smartphone has opened the door to countless other innovative
product and services. As of today there are over 1.5 million apps
available at the Apple app stove and 1.6 million available for Android users. Many of these apps represent innovative
products and services. Without the smartphone as an enabler, the
innovation down one of the three axes of innovation would not have been
possible.
So let’s talk about the axes of
innovation. When your innovation teams
are struggling, they need to look at the capabilities of other industries to determine
how to leverage that capability onto your products and services. In particular they should be looking to
transform your products and services in at least one of three innovation directions
– size, speed, and quality. These are
the three axes of innovation.
The Axis of Size
Depending upon your product, dramatically smaller
or larger may be the needed innovation. Although
the use of steel had been around for thousands of years, it was the innovation
of the Bessemer process in 1855 that enabled mass production. With that innovation, steel became the dominant
construction metal enabling further innovations in railroads, ship-building,
and building construction. Likewise, the
miniaturization of electronics has led to numerous innovations in telecommunication
and personal appliances.
Challenge your innovation teams to find the
enabling the technologies that will allow you to increase or reduce the size of
your products and services by an order of magnitude. What new technology allows you be ten times
bigger or ten times smaller? What new
product and service opportunities does that create?
The Axis of Speed
Another axis of innovation that will
transform an industry is speed. Reducing
the time for a customer to receive products or services by an order of
magnitude can transform an industry and create huge opportunities. One obvious example of that is Amazon and the
experience of buying online. Instead of
the old mail-order catalogues and waiting weeks for delivery; you can now order
on Amazon and receive your product the next day - even faster if you are
ordering a book that can be downloaded to your Kindle. The advances in communication technology,
transportation technology, and logistics have created opportunities for
innovation that are well received in our “Want it Now!” culture. This holds true as well for larger
custom-designed and built equipment. The
innovative approach of “configure-to-order” has reduced the lead time in some
equipment categories by an order of magnitude.
Challenge your innovation teams to find the
enabling technology that allows you to deliver your products or services either
instantaneously or within a fraction of the current time. Can you provide some level of instant gratification
to your customer? Can you do things remotely in the background and provide
immediate service? Can you deliver it
overnight? What product or service opportunities does
that create?
The Axis of Quality
The third axis of innovation is the hardest
to quantify. Therefore, there are more
opportunities for innovations along this axis and more risk that the innovation
will be unnoticed or unappreciated. The
attributes of quality vary with the user, the product, and the application. For some it is accuracy and precision. For some it is durability and reliability. For some it is aesthetics and user
interface. Every customer will have a
different set of attributes and priorities about quality. But there are some typical patterns among
user groups. Your marketing people
should be able to provide insight with respect to what constitutes “high quality”
for different customer segments.
Once the definition of quality is
established, enabling technologies can be identified. For automobile drivers, the definition of
quality has changed over the years from reliability to performance to
comfort. As the definition changes, the
automobiles that are considered high quality have changed the types of features
they are adding and advertising. In addition,
the expectation of what constitutes “high quality” is often impacted by the
customer experience in other industries.
Drivers of “high quality” automobiles now expect to have dashboard
displays of safety and performance data.
Fortunately, the sensor technology and display technologies have made
this a straight-forward innovation.
Challenge your innovation teams to find
enabling technologies that would transform the definition of “high quality” for
your products and services. How can you improve the ease of use in the
customer application? Can you be ten
times more accurate or reliable? What
product or service opportunities does that create?
I have focused on innovation that is
related to your existing business model or innovation within your industry or
product lines. Most companies with
innovation teams are asking those teams to create new products and
services. There are innovations that are
based upon discovering new scientific principles. These are usually the focus of academics and
research laboratories. These might be
some of the enabling technologies your innovation teams will use. But these innovations rely upon the
scientific discovery process, not commercially focused innovation teams.
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