Marketing and innovation share a fundamental connection which is woven into their essence. There are two ways that you can create value in the marketplace, you can either find out what people want and work out a really clever way to make it, or you can work out what you can make and find a really clever way to make people want it. The financial outcomes stemming from either trajectory are remarkably similar, blurring the distinction between the two processes, so it isn’t necessary to introduce a new product to perform research and development (R&D). An additional method of R&D lies in reshaping an existing product or service through diverse strategies like presentation, pricing, positioning, or framing, which may alter its market perception and relevance.
Try something new
The pandemic probably accelerated innovation various fields as the unusual circumstances have allowed for a willingness to experiment and take risks without fear of failure. During or after a significant global incident, people are more open to trying new things and are given the freedom to fail, which can change their attitudes towards taking risks. Although human beings tend to stick to routine, which can result in incremental improvements, it is not conducive to exponential progress or thinking outside the box. I think to make new discoveries, one needs to break out of our routines.
““We cannot solve our problems with the same thinking we used when we created them.””
Silent and listen
Image c/o Adobe stock photos
Maybe you’ll stand up and applaud a speaker you agreed with or just sit staring in silence after listening to a speaker you didn’t like. Now I think you are beginning to understand the complexity of listening and the great potential for errors. Acoustic ecologist, Gordon Hempton defines silence not as the absence of sound, but as the absence of noise from modern life. What do you think?
“The biggest threat to innovation is internal politics and an organisational culture which does not accept failure, and/or does not accept ideas from outside, and/or cannot change.”
Stating the obvious
I think that marketing and innovation are basically the same thing. This was confirmed after attending “The Great Wine Experience” opening event in Copenhagen, where jazz music, photography (The Uplift Sessions) and delicious wines were in focus. There are hundreds of wine bars in this city, so in reality there are only two ways where you can add value in the marketplace:
a) You can either find out what people want and work out a clever way to make it, or
b) You can work out what you can make and then find a clever way to make people want it.
The money you make is the same regardless of which option you choose, therefore, it’s not necessary to reinvent the wheel and spend thousands of kroner on creating a new concept. Another way is to take an existing concept and this case a wine shop, and then presenting, pricing, positioning and framing it in a completely different way. Natalie and Wilfred have done a wonderful job, and this is just the beginning.
Why does it matter?
While 80% of executives know that their companies’ success depends on introducing new products and services, the term “innovation” is often associated with geniuses turning start-ups into gold mines. Private equity firms place hundreds of little bets on start-ups hoping for the next Skype, Twitter, or Amazon. These bets on the next growth engine often depend on luck more than insight as many companies invest in or buy them, unsure what they’ll yield. What do you think happens if these companies dedicate insufficient resources to support innovation in the start-up phase? Contact me via e-mail for a deeper dive into the subject.
Barriers to risk
I see organisations today trying to reduce expenses by hiring inexperienced people to pound the phones, e-mails to arrange meetings and rush the sales process without looking into how companies buy. I think that it’s a good idea to look at the company culture and determine how much risk they are willing to take. Are they really involved in innovation or it’s more of a lip service?
The following questions will give you a feeling of what their culture really is like:
1. Do their executives lead by example?
2. How much experimentation is allowed?
3. How much resources (time and money) do they put into new ventures
4. What metrics are they measuring?
5. And are those metrics connected to new things, for example, new to the market type of products?
Over the past few years, I have studied corporate cultures and change, and what fascinates me is when we speak about change is that we think in terms of “Good vs. Bad.” I don’t think it’s as simple as that, I think corporate complacency is the worst kind of culture. I think the world has become so complexed that we keep more and more ridiculous processes in place. And this results in employees becoming complacent and no longer think that they can affect change, they just give up and hide behind the mentality of “things are just fine!” Contact me via e-mail when you willing to make incremental change in your organisation.