The following quick, four-step guide can help you navigate the process and get you on a smooth path to innovation at your own organization.
1. Observe Your Customers to Uncover New Problems — and Opportunities
By building an understanding your customers’ problems or pain points, you can think of ways your organization can provide solutions. Try creating customer journey maps to illuminate what your customers are doing, thinking, feeling, and experiencing during every stage of the shopping, purchasing, and consumption process.
2. Create New Solutions
Now you can use your customer insights to explore new ways to make a profit. Alexander Osterwalder’s business model canvas is an effective tool for visually plotting and identifying these opportunities.
3. Prototype and Learn in the Market
To arrive at an optimal final product, adhere to the principles of lean development: introduce your product to the market as a basic offer first. This enables you to learn continuously from customer behavior and change the offer quickly if it is not working.
4. Implement the Best Ideas
Take those successful prototypes to market — and keep learning.
Embracing this process as an iterative cycle of learning gives you the flexibility to try out new business possibilities and refine the ideas. This is the best practice for growth companies.