Something Really New

Ask the Questions

Few businesses can survive simply by producing a commodity cheaply and efficiently. Instead, they must find a way to distinguish their gadget from everyone else’s and to carve out a market niche that is theirs alone. Differentiating yourself in the market creates a “halo effect” that benefits the entire company. For example, when Apple introduced the iPod, its previously stagnant computer sales rose. A reputation for innovation spreads throughout the market, coloring consumers’ expectations about the entire company.

To innovate early and often, ask three questions:

1. “What task is the product really used for?” – Throw out your assumptions about the purpose of your product – they limit your perceptions. Instead, observe how customers actually use it. For example, if you were in the plumbing supply business, you’d watch customers use your faucets. These devices don’t simply deliver water. They fill the bathtub, wash the pots and hook up to the garden hose. You’d realize that faucets cannot be generic; for true efficiency, different tasks require different designs.
2. “When I know what task a...