Connecting the dots
Where do innovations come from? It happens when you connect the dots and say Eureka! But there is more to it. In my interactions with managers across companies, I notice that there are many places where these Eureka moments come from. One such a places is when you observe a customer, consumer or a user. Companies such as P&G have made a science out of this and have reaped immense benefits from this practice.
A Eureka! Moment
While researching for my book ‘The dark side of Innovation’ an ex-Kodak manager told me of one such Eureka! moment. Although Kodak didn’t survive (I analyze that event extensively about it in my book), this example is a great lesson for all innovators.
In the early days of Kodak digital camera, Kodak team found an issue with the users. Women used digital cameras extensively and would end up filling their memory cards. At that moment, instead of transferring their images to a computer, they would wait. They waited for a male such as a husband, son, or a friend to transfer the images to a computer. The reason could be anything ranging from fear of technology to a lack of understanding of technology but the fact remained that a camera became useless until a male emerged to help the damsel in distress.
When the team observed this phenomenon across a large number of users, they came up with the idea of Easy Share – a peripheral device for Kodak cameras. This peripheral deice acted as a base for the camera and remained connected with a computer. Once a user placed the camera on the base and pressed a button (on the base), it would automatically transfer images to the computer. This improved lives of users by solving a critical problem.
Market Success
The result was a an attachment rate of over 80%; it was a very successful innovation. And at the heart of this innovation was the ability of the team to observer the customer interact with their product.
The Takeaway
Observing customers is a cool way to search for innovations. But you need to really observe them like an ethnographer does. When was the last time you actually observed your customers interacting with your products / services to find a pain point?
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