Innovation projects often start with a
customer needs analysis. The company
wants to understand the “voice of the customer” so that the innovative new
products can provide value in areas that are not being serviced. But what if the product or service is so
innovative that the customer can’t even envision it? The customer doesn’t have any needs because they
don’t understand what could exist.
An example is the smart phone with its
thousands and thousands of apps.
Customers were not asking for a phone with all the features and
functions that are available in the app store when the smart phone was first
introduced. They wanted to make phone
calls. Their customer needs were in the
area of call quality, contact lists, and ease of use. The smart phone platform totally transformed
their perception of cell phone value and customer needs.
The key takeaway from an innovation
perspective was the creation of a platform that would allow others to
create. This is a form of co-creation -
where one innovation is the enabler for hundreds or thousands of other
innovations. Platform innovation is very
powerful once it is accepted by the co-creators. It will transform society and create
exponential growth in customer value.
And the smart phone is not a unique
example. If we look back in history we
can see other technology platforms that fundamentally changed how people lived
their lives. Customer value and customer
needs were radically transformed. Here
are several examples:
- The printing press invented in 1440. When the printing press was invented there were very few books and very few people who could read. If someone had done a market research study and conducted focus groups, printing of books and documents would not be near the top of the list for consumers. Yet that innovation was the platform that enabled the Reformation and the Renaissance. Men could easily express and share their ideas with others who were far away. This led to a rapid growth in knowledge and knowledge transfer. The results were rapid global exploration, scientific breakthroughs, and a surge in the arts. It also gave rise to new industries that were directly related to printing such as newspapers, magazines, and book publishing. The ability to read, write, and communicate through the written word is now assumed in modern society.
- The electric motor invented in 1834. The electric motor was the next logical invention following the invention of batteries and the scientific explanations concerning electromagnetic fields. The motor was first created to be an alternative to steam engines and therefore the emphasis was on bigger motors with more torque. There was no market research showing the need for small, quiet, and extremely accurate motors. Rather the availability of the motor and its cost and size led to its rapid incorporation into all types of machinery. The characteristics of the electric motor – cheap, reliable, consistent torque – were the enablers of machine design and innovation that was an essential part of the industrial revolution. Today, you cannot find a piece of equipment in a factory that does not have at least one electric motor in it somewhere.
- The integrated circuit (microchip) patent was filed in 1959. Although the technology was patented, numerous patents were filed by several companies to quickly fine tune the process and soon there were numerous chip manufacturers. The integrated circuit technology platform allowed for automation and advanced control of virtually every machine and device in existence. This led to increased performance and more features while also lowering costs and improving quality. A win-win-win-win. Integrated circuits have re-energized old mainstream industries and have been the enabler for many new industries.
So let’s look at several characteristics of
this aspect of co-creation - that is the creation of a technology platform that
customers can use to create new families of products.
Open Platform. The innovation platform was open enough to
allow others to innovate their own products using the platform. Inventors are often very protective of their
invention. It is their baby and they
want to nourish it and reap the benefits that the invention creates. But for a platform innovation to have a
game-changing effect, it relies on many others using the platform in their own
innovations. This is the co-creation
element. Creating a platform open to
customers and users results in new products and applications, this will further
reinforce and benefit of the platform.
The platform inventor must provide the technical support or
documentation to allow the platform customers to innovate and co-create value with
the platform.
Platform Support. The speed of customer co-creation is
increasing exponentially. It was
literally over one hundred years after the printing press was invented until
the impact of the wide availability of the written word began to be felt. The electric motor started to proliferate in
the late 1800’s – fifty years after its invention. The integrated circuit was creating a major
impact by the early 1970’s – barely ten years after it was invented. And a large number of commercial apps for
smart phones were available within two years of the introduction of the iphone. The technology adoption cycle is now very
short for co-creation innovations. The
platform inventor must be immediately ready and able to collaborate with
customers; or they may leave the platform behind and go on to the next new
platform.
It is short-sighted for any company that is
developing platform technologies to think that they should own the platform and
all applications. That will limit and
likely kill the platform. Instead open
the platform up to customers and begin co-creation. The value that the platform creates at the
customer will accelerate both the customer growth and the platform growth.
Thank you for your nice post..
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Part time MBA in Chandigarh