Often innovation is associated with bold changes and big leaps towards a newer and better solution – some kind of breakthrough that is spectacular in nature. But the truth is that many innovations take place in small and continuous steps that can amount to visible and impressive changes over time. The concept of iterative innovation has the advantage of being easily manageable, with little risk involved, while still producing amazing results in the long run.
Focus on a certain characteristic, not the entire product
Often it is just one element of an existing service or product, based on what is possible given its current level of development, that can be changed in order to initiate the next innovation. Take a mobile phone with a keypad featuring large keys, for example. It is a low-tech, simple feature appreciated by many senior citizens that makes it easier for them to dial numbers. It is also something that often is much more valued than fancy apps or a razor-sharp display. Once the market has accepted the introduction of such a change, the next improvement can be added, which – sticking with our senior-friendly phone example – could be an SOS button or a hearing aid compatibility.
Testing and improving through feedback loops
Close market observation usually provides clues regarding a specific improvement that could be introduced. Once a change is implemented and before development continues, rapid and targeted customer feedback is obtained; for example, by consulting with focus groups or by handing out samples of the modified product. This not only reduces uncertainty and provides a better understanding of future-proof changes but also ensures that innovation is economically feasible, market-focused, and customer-centric. It streamlines the innovation process and keeps costs and time budgets in check. Maintaining market focus and having specific target groups in mind also helps to structure the innovation process because this allows to clearly visualize the desired benefit and to gauge the impact. Coming back to the before-mentioned smartphone example, the goal could be to increase sales by 10% for the 50+ generation, leading to one simple innovation that can be introduced quickly.
Beyond Iterative Innovation: Principles of Innovation at Google
Marketing
Finally, marketing and commercialization should be feasible if the previous steps were properly conceived, ensuring a level of market resonance and sales that allows for the next developmental stage and further scaling. This aspect includes getting the whole team on board to support the marketing and sales process; which might include a customer service prepared to deal with questions about the new innovation; or listening to business partners, frequently retailers, to see what their appreciation of the innovation is in the longer term. Naturally, positioning and branding need to be aligned with the innovation because from a market perspective, the benefits that come with it cannot materialize if they are not communicated and perceived as such.
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