INNOVATION
Entrepreneurs must develop a strong interest in identifying new and sustainable sources of growth or disruption and this requires innovative effort to view things holistically and systematically rather than being confined to the research and development or design teams.
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by Roberto Verganti, the Professor of Leadership and Innovation, originates from the results produced when this process is applied, because designdriven innovations do not have their origins in market needs. Instead, they identify and create new markets which do not necessarily introduce new technology but rather introduce a new meaning and experience like Apple’s ipod that changed our understanding in the meaning of listening to music. Although the market did not ask for it and probably did not know that they need it, but once it was introduced, the market embraced and loved it. Entrepreneurs need a reminder that they can enter the industrial world without getting into products that require sophisticated manufacturing facilities. Instead, they need to use the design driven innovation approach by appreciating the emotional attachment consumers place on products and introduce complimentary devices. To clarify, a remarkable example is the selfie stick or the wireless headphones for mobile phones. When we think of industrial innovations; there are two key angles to consider. The first is in the form of a breakthrough, or a disruptive change where a new product gradually replaces an old product like LCD TVs. The second angle is in the form of an upgrade or a modification in a product feature as a response to consumer pain points or needs. Having said that, in today’s dynamic and highly competitive markets, the industrial SMEs need to be proactive and forward thinking to sustain and succeed and this can be achieved by harnessing their abilities to master innovation beyond tweaking features or function enhancements. In particular, they need to raise their awareness and truly understand the emotional ties consumers develop and place on products they purchase, and because the two innovation methods does not necessarily lend themselves to assisting innovators to understand these ties; the design-driven innovation approach is the way to go with the demanding consumers of this century
who are constantly seeking to tryout better alternatives for personalised experiences. In design-thinking and design techniques; SMEs are encouraged to employ these techniques across the value chain from the design stage of the consumer perception to the industrial and engineering design of the functional manufacturing equipment, which provides an unconventional framework to introduce innovative products that consumers may not have asked for, but they would enthusiastically buy into it if the end product delivers an enriching and enhanced experience. Cleary, innovation is a key driver of competitive advantage for any business and this no different for industrial SMEs. Entrepreneurs must develop a strong interest in identifying new and sustainable sources of growth or disruption and this requires innovative effort to view things holistically and systematically rather than being confined to the research and development or design teams. Furthermore, the mindset has to be there to develop the ability to continuously process and transform knowledge and ideas into new manufacturing processes, services, systems and products is the fundamental success factor for any business. The promising news is that successful innovations are hardly ever accidental. Entrepreneurs who are diligent and passionate in pursuing unexploited opportunities will be leaders in developing new market needs not just in their country or region but even at a global level.
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