It's almost as if companies are trying to innovate by asking what was done in the past.
Unfortunately, this kind of research never leads to innovation. When the focus is on what a competitor is doing, one is condemned to follow what a competitor does. Even if one improves on something that a competitor is doing, only small increments of change are possible. Innovation that changes markets, creates new customers, and delivers high margins and profitability does not come from the competition.
Would Edison have created a business around electic lights and electric distribution if he had paid too much attention to the gas light competition? Could telegraphs have been developed by trying to innovate a better horse and rider? The personal computer was developed - not as a competing super computer to the mainframes - but as a completely new path, use and user for a smaller, cheaper, more flexible computer.
Instead of listening too much to competition, perhaps it's time to listen more to customers. Customers may not always know what they want, but they can tell you what bugs them, what they want to do with their lives, with their businesses, with their families. Customers can give you opportunities, challenges, and new ideas - but only if you are willing to listen to them.
And by listening, I don't mean researching them...that's what the competition is doing right now. Instead, try sitting down and talking with them. Throw out some ideas and see how they react. Ask them why they disagree with you. Try to find out what makes them laugh.
The competition always has the same old ideas. Customers have all sorts of new ones - if you sit down and talk with them.
If you want to innovate, try ignoring the competition for a little while.
2 comments:
Many good points in your post but be careful what you practice. I like to diversify my available R&D budget between requests from loyal customers, competitive parity and innovation. There is frequently room to adjust the mix and, all things being equal, I'm a big fan of going richer on innovation. Ignoring the competition is a nice mantra to stir up the internal troops. The fact remains that smart people work everywhere, not just in your organization. Rather than ignoring the competition, you might try inspiring the team to look for innovative ideas from any and all sources.
Bill
Read "Bill Freedman's Soon To Be A Major Trend," the provocative blog on marketing and persuasion.
Bill has a good point. Thank you for taking the time to comment.
Here's an attempt to clarify my thinking on this point: I agree that good ideas and smart people come from everywhere - including the competition. However, my statement that it may be time to ignore the competition (especially during a time of dramatic economic turmoil), though perhaps overstated, points to a need for companies to pay less attention to how competitors define product, process and customers. Obsession with competitors often hinders innovation, because it can put boundaries on how you define your business, your customers and any potential products/services.
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