Food. What is the first thing that comes to mind? I bet it’s not innovation. I recently had the opportunity to tour Rutgers University’s Food Innovation Center. Rutgers has built an impressive facility with a food processing plant attached. This facility is a past winner of NBIA’s “Incubator of the Year”. Local farmers can rent a food plant by the day to create new products from produce that would be normally discarded. The design and flexibility of the facility has enabled a European firm to test launch a new food product. This visit got me thinking how uninventive we can be about innovation.
Avoid just a better product: Product innovation by itself is not sufficient for competitive advantage. Thinking just about the product is a missed opportunity for more innovation. The farmer that cannot sell bruised or imperfect fruit as fresh produce could focus instead on growing better peaches.
Or make a new drink product with unused product with greater profit margins. One peach grower did just that.
The simultaneous change in product delivery, value proposition, and profit model need to be farmed for innovation opportunities. That is, do not confuse product innovation with the broader concept of business model innovation. This point is well made in a whitepaper entitled Business Model Innovation; When The Game Gets Tough, Change The Game. Take the example of Apple; its success is due to multiple simultaneous innovations in product, technology and service. The whitepaper outlines other company examples too1.
Simultaneous multiple innovations: Think beyond your original innovation. What other areas of your offering have not been looked at for change? Look at innovative business models outside your industry for ideas.
More than a better mousetrap: Thinking beyond product innovation is a seriously difficult task. However, it appears organizations that do have been rewarded with market leadership.
- Z. Lindgardt, M. Reeves, G. Stalk, M. Deimler “Business Model Innovation, When The Game Get’s Tough, Change The Game”, Boston Consulting Group, (12/2009): 1-8. Bottom of Form