Innovation in Technology: What You’re Probably Getting Wrong
Posted: April 22nd, 2009 in Addressing Consumer Needs
In a recent BusinessWeek article titled How to Think Outside the Box, Bill Buxton talks about going beyond the constraints of the current role and definition of technology, and instead focus on improving consumer experiences by paying more attention to “human” considerations, like how we live our everyday lives. While the article does a great job highlighting the need for technology to integrate better in our day-to-day lives , it made me go back to a fundamental mistake in many new technology-based products- lack of solving a true need.
Developers of new technology products often focus on “design” as a way to differentiate and get credit as being “innovative.” While design can be a very useful component in addressing the totality of consumer needs, many companies incorrectly assume that products based on unique and eye-catching design alone will rise to success. The recent focus on product design is often attributed to Apple and its legacy of successful new products over the last decade. Many argue that their products have been successful due to their sophisticated design – and therein is the underlying mistake.
Apple’s focus on design is twofold. The first and more obvious is to use design to make “friendlier” and more appealing products that enhance (often by simplifying) the user experience through hardware and software. But often overlooked is the other side – that Apple products actually address consumer needs. Their use of design is not simply for making good looking products, but actually helping users make the most of the underlying benefits of the technology. Combined with great business execution, Apple’s product lines have enjoyed growing success year after year visible from the company’s revenues that grew from almost $6 Billion in 1998 to over $32 Billion in 2008.
But successful new product development hinges on not just identifying the consumer need, but a much deeper understanding, including realization of the specific solution requirements consumers have. This is important, because a product that addresses the high level need, but fails to meet the specific solution requirements area will achieve only limited success. Innovators need to work on striking the right balance between meeting solution requirements and offering a good value proposition; failure to do so can severely limit market acceptance. Even Apple, recognized as the most innovative company in the world is not immune to this fundamental truth for new products, as it found with the initial release of the Apple TV set-top box that only achieved limited success (even CEO Steve Jobs admitted they missed the mark). While the product enabled consumers to access their downloaded media content (music, TV shows and movies) on their TV, it did not meet many of the specific solution requirements that consumers had (being able to download content directly, a good value proposition – consumers don’t want to feel like they bought another computer, etc). When Apple addressed some of these concerns in their second version of the product, sales triple over the previous year.
Companies need to focus on delivering relevant benefits to consumers, instead of simply offering new features in a pretty package. And the only way to really do that is focusing on solving the problem, and doing it right by meeting its requirements.