It seems that innovation today goes to the company that simply says that its product or service is “innovative.” The real problem for the client or consumer, is that each supposedly new innovation has a “me too” look. As this author writes, knowing your market and differentiating sharply on value will enable your product or service to stand out in the crowd. He describes the steps to take in this article
Some research on innovation that succeeds suggests two particularly important insights: First, the single largest predictor of new product success offers a differentiated high-value product/service. Second, the single largest predictor of new product failure is inadequate market research and customer knowledge. (Cooper, Robert: Winning at New Products, Basic Books, Fourth Edition, 2011)
The innovation smorgasbord
The unbundling of features and legal rights provides a method of addressing the needs of a buyer with simple needs or a low purchasing power. One could imagine, for example, different prices for a book depending upon the period of ownership, the number of reads, the ability to lend, the ability to resell, the ability to resell and share the revenue with the copyright owner. A more aggressive and innovative legal model might actually enlist readers in the sales process by sharing revenues from referrals or second-hand sales.
Reprint from Ivey Business Journal
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