As you know, I am a global customer centricity champion. My passion is helping organisations to grow faster by putting customers at the heart of their business. One of the most frequent requests I get is to help in improving ideation and innovation.
This is by far the most common area that my clients struggle with. Is it a challenge for you too?
Many companies create great new products and services – from their perspective – but they fail! They then ask if I can help them to identify to whom they should be selling. Of course, I do help them, but I also suggest that next time it would be better if they called me before they started innovating! In a failure situation, it is almost always due to an outdated innovation process in which the customer has not been involved.
I know it can be difficult to innovate in this new age of technology, but it remains vital for growth. This is why I was recently invited to run two workshops on improving ideation and innovation, as well as to speak about it at three different universities in Beijing and Shanghai.
China is an Innovation Hot-House
China joined the top 25 most innovative countries in the WIPO global innovation index for the first time this year. This is because they no longer rely on cost-effective manufacturing alone. They also applied for more patents than the next two countries, the United States and Japan, combined! This clearly shows that China is improving ideation as well as their innovation. But they know they must do even more. To become a truly competitive nation, they have to better understand their customers, especially their growing middle and higher-income residents, who continue to prefer primarily imported Western brands.
Let me share with you a few of the ideas that I spoke about during my visit. They may just save you too from more costly failures.
Innovation is Essential
Switzerland continues to lead the world in innovation according to the latest WIPO GII study. It was, therefore, a privilege for me to by invited to help China corporations and academics by proposing a new way to innovate.
Most companies innovate from a technical and skills-based foundation. It doesn’t usually work very well, if at all. In fact, according to Nielsen, IRI, Fortune and many others, it is estimated that between 85% and 95% of new consumer products in the US fail. In Europe, it’s just as bad, with only 25% of new consumer products still on the shelf just twelve months after launch! And less than half that number by the end of the second year.
With such disastrous results, you might wonder why companies continue to innovate. Well there are three main reasons why they do:
- It keeps brands fresh. Brands which innovate have something new to share with current and potential clients.