Path innovator. Sources of Innovation
The most exciting phrase you can hear in science, the phrase announcing new discoveries, is not “Eureka!” At all, but “How strange ...” Isaac Asimov
What do lack of demand, excess transaction costs and market errors have in common? Today, innovation involves finding the missing solution to a problem. But where to start your path innovator? If we assume some materiality of innovation, then a direct allegory suggests itself with the fundamental law of conservation of energy , a very problematic law that is the main obstacle to the invention of perpetuum mobile - an engineering task for all times. So, the very consequence of the law says that nothing is taken from nothing. Thus, innovation must also start somewhere. But how to find such a source?
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Assuming that the sources of innovation still exist, it would be nice to take advantage of their opportunities.
Although it may seem that the destruction of current value propositions through disruptive innovations is a rather painful process, enterprises should focus their efforts on finding the sources of the latest value propositions if they want to continue to exist normally. So why not start your search from places where others have failed? Solutions to mistakes and existing problems provide explosive growth.
What makes the lack of demand, excess transaction costs and market errors significant from a business point of view? Just a lack of attention to them. Often, problems seem unsolvable, transaction costs are too high, mistakes are unrecoverable, and the consumer segment can be perceived as unpromising, of no interest. Understanding these questions may explain why it is difficult for an overwhelming number of enterprises to develop a franchise or scale up their business.
Take any growing company and ask: what is the basis of its growth? Almost always explosive growth was provided by solving one of the above problems, through the development and implementation of new assets and opportunities. Such an innovative solution can provide businesses with the required growth rate they are seeking.
The lack of demand is a direct consequence of lack of interest, which by no means indicates the absence of consumer needs and desires, but merely indicates that the needs are not satisfied in the form and in the manner that leads to serial use.
An excellent example of eliminating market contradictions is Uber. The essential offer of Uber is the convenience provided by the independence of the order of the service from the place, time and transparent payment scheme. As a result of the resolution of market contradictions - explosive growth.
Similar situations occurred with other companies. Google often tears patterns, opening up new markets by eliminating mature market frictions.
Well, the favorites of the public from Apple. In 2001, the company launched a legend on the market - iPod. The combination of device, software and online store turned the entire music industry, although Apple was not a pioneer in the market of portable media devices. Apple's value proposition knocked the ground out from under its rivals. Now consumers could easily find, acquire and listen to music. How did this happen? At first glance, now this idea seems to lie on the surface and to say nothing elementary, but at that moment the company had to enter into agreements with all record companies in order to create the largest base of musical works. Considering the label's appetites, it was hardly a simple matter. I don’t even know if anyone other than Steve Jobs could do that?
The gap between the need for innovation and the meager income from their implementation in some areas of business is a tragedy in the full sense of the word.
Look at the pharmaceutical sector. The development of new products requires an incredible amount of investment, both financial and temporary. Moreover, revenues in this area may be ten times smaller, given the narrow specialization of the drugs being developed. The last major breakthrough in the pharmaceutical industry occurred in the forties of the last century, when it was possible to obtain a high-quality, pure form of penicillin and launch it into production. This, of course, is a classic example of the failure of the innovation sector.
While there is no magic formula guaranteeing the growth of any business, solving the issues raised can be a great place to start. Finding solutions to market mistakes, contradictions and lack of demand can lead to bright and elegant results that ensure massive expansion and a quick start.
What do lack of demand, excess transaction costs and market errors have in common? Today, innovation involves finding the missing solution to a problem. But where to start your path innovator? If we assume some materiality of innovation, then a direct allegory suggests itself with the fundamental law of conservation of energy , a very problematic law that is the main obstacle to the invention of perpetuum mobile - an engineering task for all times. So, the very consequence of the law says that nothing is taken from nothing. Thus, innovation must also start somewhere. But how to find such a source?
')
Assuming that the sources of innovation still exist, it would be nice to take advantage of their opportunities.
New value sources
Although it may seem that the destruction of current value propositions through disruptive innovations is a rather painful process, enterprises should focus their efforts on finding the sources of the latest value propositions if they want to continue to exist normally. So why not start your search from places where others have failed? Solutions to mistakes and existing problems provide explosive growth.
What makes the lack of demand, excess transaction costs and market errors significant from a business point of view? Just a lack of attention to them. Often, problems seem unsolvable, transaction costs are too high, mistakes are unrecoverable, and the consumer segment can be perceived as unpromising, of no interest. Understanding these questions may explain why it is difficult for an overwhelming number of enterprises to develop a franchise or scale up their business.
Take any growing company and ask: what is the basis of its growth? Almost always explosive growth was provided by solving one of the above problems, through the development and implementation of new assets and opportunities. Such an innovative solution can provide businesses with the required growth rate they are seeking.
The lack of demand is a direct consequence of lack of interest, which by no means indicates the absence of consumer needs and desires, but merely indicates that the needs are not satisfied in the form and in the manner that leads to serial use.
Elimination of market contradictions
An excellent example of eliminating market contradictions is Uber. The essential offer of Uber is the convenience provided by the independence of the order of the service from the place, time and transparent payment scheme. As a result of the resolution of market contradictions - explosive growth.
Similar situations occurred with other companies. Google often tears patterns, opening up new markets by eliminating mature market frictions.
Well, the favorites of the public from Apple. In 2001, the company launched a legend on the market - iPod. The combination of device, software and online store turned the entire music industry, although Apple was not a pioneer in the market of portable media devices. Apple's value proposition knocked the ground out from under its rivals. Now consumers could easily find, acquire and listen to music. How did this happen? At first glance, now this idea seems to lie on the surface and to say nothing elementary, but at that moment the company had to enter into agreements with all record companies in order to create the largest base of musical works. Considering the label's appetites, it was hardly a simple matter. I don’t even know if anyone other than Steve Jobs could do that?
Search for solutions to market errors
The gap between the need for innovation and the meager income from their implementation in some areas of business is a tragedy in the full sense of the word.
Look at the pharmaceutical sector. The development of new products requires an incredible amount of investment, both financial and temporary. Moreover, revenues in this area may be ten times smaller, given the narrow specialization of the drugs being developed. The last major breakthrough in the pharmaceutical industry occurred in the forties of the last century, when it was possible to obtain a high-quality, pure form of penicillin and launch it into production. This, of course, is a classic example of the failure of the innovation sector.
While there is no magic formula guaranteeing the growth of any business, solving the issues raised can be a great place to start. Finding solutions to market mistakes, contradictions and lack of demand can lead to bright and elegant results that ensure massive expansion and a quick start.
You should not start with a clean slate, look where many have already been and retreated.
Source: https://habr.com/ru/post/291458/
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