“… Because its purpose is to create a customer, the business has two — and only two — functions … Marketing and Innovation. Marketing and innovation produce results, all the rest are costs …” — Peter Drucker
The ability to develop and launch new products and services is critical for the long-term future of any business, yet 90% of new developments result in commercial failure. This article discusses some of the issues with innovation and highlights proven processes that ensure every launch is a winner. Topics covered are:
- Why you shouldn’t listen to the Voice of the Customer
- The search for Six-Sigma Innovation
- How to identify Innovation Hot-spots
- On-Demand Concept Generation
The Importance of Innovation
The creativity and inventiveness of people is a vital ingredient for any business. However, it is only through innovation, the implementation and exploitation of their ideas that a business is able to compete and prosper.
Already, the competitive landscape has significantly changed with globalisation. Now appearing are many new competitors from low-wage, dynamic economies. For instance, China has given birth to some 50 automakers, such as Geely, Chery, Great Wall Motors and Brilliance. Who knows which of these fledgeling car companies will become the global giants of the future? Staying competitive will require a step-change in innovation performance.
As Peter Drucker points out, the two key activities within any business are Marketing and Innovation. Marketing allows the identification and understanding of suitable hungry markets. Innovation allows the fulfilment of the market’s need in some unique way that customers value greatly. Without marketing, there is no customer pull. Without innovation, the proposition is copied or disrupted by competitors. In the longer-term companies that don’t innovate die.