Archive

Posts Tagged ‘product development’

Apple & disruptive innovation: 4 questions innovators need to ask before moving forward!

March 20, 2015 Leave a comment

Steve Jobs thought that most people live in a small box. “They think they can’t influence or change things a lot.” Jobs urged his staff to reject that philosophy as untrue.

Disruptive innovation is seen by many companies as a threat to them – but not by Apple who are happy to embrace disruptive technologies.

An interview with Tim Cook, Apple’s CEO, in FastCompany magazine shows that things are not as simple – and this offers lessons for all companies looking at new technology.

The key points are that Apple doesn’t go for every new technology. First they need to understand and have faith in the primary technology behind an innovation. They then consider two questions:

What can Apple add to this – and will it be embraced by society or be seen as something positive. These are interesting questions as a new technology will only be disruptive when people view it as adding to their overall well-being (even if initially people don’t fully understand the innovation – as was the case with first iPad where pundits said “so what” and “why do I need this”). Apple then looks to see if they can be the leader in technology – to own it. If they can’t they leave it to others.

This explains why often Apple isn’t first with something new. For example, they’ve just launched the Apple Watch. It’s too soon to say if this will be a success (although initial signs suggest it will be). Again critics have complained about it. It’s also not the first wearable on the market.

Essentially what’s being said is that to launch a truly disruptive product you need to answer four questions?

1) What is the new technology – and do we understand it?
2) Can we play in this market?
3) Will this innovation / technology / product or service contribute to society i.e. enable people to do things more easily or better than they could before or do things they couldn’t do at all before?
4) Can we be a primary player in this market?

If the answer to any of these 4 questions is no, Apple won’t enter the market. These are great questions that any company should consider before entering a new market. (The third question is perhaps the most interesting in respect of Apple – as what did the iPad offer people that other then existing devices couldn’t do. In retrospect, the answer is obvious but that’s hindsight. Spotting that the iPad, launched in 2010, gave you much more than the iPhone or the Amazon Kindle that predated it by 3 years, and that a laptop wasn’t as transportable, or easy to use was the genius of the device.

Leave your comfort zone!

October 18, 2010 Leave a comment

The Biblical Abraham was one of the world’s most successful individuals. (It doesn’t actually matter whether or not Abraham really existed – from a Biblical critical perspective. He is revered by at least half the world’s population who belong to one of the three Abrahamic faiths – Judaism, Christianity and Islam. As such his influence has been immense). In the Bible, the story of Abraham starts in Genesis – chapter 12. God commands him to leave his country, his extended family and his father’s house and to move to a land that God would show him. In return, God promises that Abram (Abraham) would become a great nation, and that he will be blessed.

Of course the Biblical commentators have a field day looking at the wording and what was being said. However I think that in fact, the idea is quite simple. Abraham was being told to take a risk and to do something new. In return, he was promised success in his venture. This is a lesson that businesses and individuals can learn from – and perhaps governments too.

  • Where is the safest place for an individual? Generally the parental home.
  • Where can one expect help from when things go wrong? From close family and friends.
  • Where are you most likely to know your way around and know the “system” – and least likely to get lost physically, or metaphorically in bureaucracy? In your home town and country.

Abraham is commanded to leave each of these – in reverse order, with the easiest first, and the place you feel most safe last. In terms of business the same lessons apply.

Igor Ansoff is famous for the Ansoff matrix.

Existing
Product
New/Modified
Product
Existing
Market
Penetration Product
Development
New/Modified
Market
Market
Development
Diversification

When you have lots of opportunities in your home market and your product is doing well the objective should be to increase sales with this product to this market. However when things start to change – perhaps most people in your current market already have your product – then you need to move outside your immediate comfort zone and look to a new product or a modification of your existing products. You need to be willing to take a risk. Failing to change is likely to lead to eventual corporate failure, as the market becomes totally saturated, and profit levels reduce as the only way to compete becomes price. Product enhancement gives you the choice to differentiate your product and maintain profitability. Leave you father’s house and try something new.

This also applies in many other circumstances. The recent phenomenon known as “boomerang kids” is not just a problem for parents having to cope financially with adult children returning to the nest, but also the children themselves. Although living at home can be comfortable and secure, it becomes difficult to move out when all your needs are being met and to become truly independent. It means that such children are less likely to be successful – until or unless they do leave home.

The next stage is when even product variations don’t work – as your current market sector is saturated. You need to look for new markets. In Biblical terms – Leave you family and friends and try something new. In business this means looking for new markets. These can be different industry sectors or geographies. Again, being scared of taking the risk will lead to failure – as your current customer base ceases to purchase your products in sufficient quantity for you to make profits.

Globally, many people are now in this stage of the cycle. Their opportunities in their home countries are poor – for various reasons, and emigration to another market promises a better chance in life. Historically this has often been the case – with emigrants being highly successful and also enriching the cultures and life in their new countries. In contrast, their compatriots who stayed at home often continue a cycle of poverty or lack of success. I believe that many governments see emigration as a threat – and I think that they are correct, as often emigrants are the very people who should be encouraged to stay as they are the innovators and the risk-takers within society. If emigration is a problem in a society it means that the society itself has problems, and perhaps the government should look to itself as to why people want to move. Conversely the antipathy to immigrants in the destination countries is also misplaced – as many immigrants contribute massively to their new homelands, especially when welcomed and encouraged to integrate into the new society.

The final stage is the most difficult and also may appear the riskiest. However if the markets (old and new) for your current product lines are stagnant then the only hope is to move into completely new areas – with new / enhanced product lines targeting new customers and markets. You need to diversify away from your home products, your home markets and move to a new area -i.e Leave the location you are now in and try something new. In fact this promises the best chance of all for success – as it allows you to capitalise on both current product lines and markets and also the new ones. Companies that manage to diversify into new markets are likely to grow at a much faster rate than their “stay-at-home” competitors. Of course how to manage a successful diversification programme is a different question – requiring research, planning and strong, thoughtful and innovative management. The willingness to try and to leave comfort zones should help prepare management for this stage – so that when the time comes, they are willing to take risks necessary to protect their organisations.

Only by being willing to change, and move away from your comfort zones can success be guaranteed. Do it right, and like Abraham, you can succeed and make a name for yourself.

© Arthur Weiss / AWARE, 2005-2010

%d bloggers like this: