technological innovation

With Disruptive Innovation, Customer Is Not Always Right

disruptive innovation

Disruptive innovations and customer feedback

A recent study by ChubbyBrain.com listed the top 20 reasons why startups fail. The #1 reason, ahead of funding, product quality, pricing and other popular ones, was “ignoring or not seeking customer feedback”. However, there are two sides to this.

If your company is launching a disruptive technology, or a at least a truly innovative product, and you really believe in it, taking initial customer feedback at face value may not necessarily be the best way to go. A classic example is the walkman. When Sony was building the product in the 1970s it reached out to potential customers to learn what they thought of it. The most common reaction was to say that the walkman was a stupid idea! Who would walk around listening to music, instead of enjoying it while sitting back in the couch? How would you run errands or even jog with “speakers” on your ears, not hearing what’s going on around you? Had Sony been discouraged by this feedback, it would have probably discontinued the project and missed out on this huge hit.

If not a disruptive innovation, follow the rules

Now, if your product, like the vast majority, is not starting a new market or doesn’t require change in attitude or lifestyle, then of course the story is different. You should adapt to your clients as much as possible, not expect them to do so. This sounds intuitive, but many entrepreneurs (including myself in the past) think their product is so great that the problem, really, is with the rest of the world that doesn’t want it the way it is. Distancing yourself from your “baby” and taking client feedback into consideration is fundamental, both in the product development stage and thereafter.

At the end of the day, it is a judgement call. Do you believe so much in what you are doing – and how you are doing it – that you are willing to risk ignoring customer feedback? Are you breaking a paradigm of sorts to expect to be right over the majority of people you are supposed to serve? Only a very small percentage of startups would fall in this category. If you are one of them, you will have an uphill battle to change people’s behaviors; but one that can have a huge payoff.

See also Not All Angel Investors Are From HeavenImage: pocketcalculatorshow.com

What’s your experience with disruptive technologies? Leave us a comment!

Advertisements

An Idea Is Just That – Not Yet An Innovation

Innovation idea new business

Innovation and new ideas

I am frequently approached by people who want to share a new business idea with me. Some are actually good, others, well, you know. Usually the pitch is accompanied by a good amount of mystery and secrecy: “Andre, I’m telling you this because I trust you, but don’t tell anyone; this could be big”. So let me summarize what I tell friends who approach me like that.

Turning an idea (hopefully) into an innovation

First, don’t worry too much about secrecy. Your new idea is likely not as much of an innovation as you think, it has probably come up before in one way or another. And even if it is (almost) that great, you will only be able to go somewhere by sharing it with other people who can give you useful feedback and leads. The chances of someone stealing your idea are probably slimmer than you turning it into a business without sharing it with others. Competent people are busy and know how time consuming and risky it is to start something new.

Second, ask yourself what YOU would bring to the table. Are you business savvy? Have the relevant technical skills? Money to invest? An amazing network in the industry? Lots of time to spare (on top of at least a bit of one of the former)? If you answered “yes” to one or more of the questions, then great, you should move forward. Try to find the people and resources needed to complement your skill-set and hit the road. But if the answers are straight “no’s”, I need to say you should probably let go and try to think of another idea.

To illustrate this, once a friend came to me with a pretty good idea for a mobile app. However, he didn’t know a thing about starting a company or building an app, didn’t have money to invest, didn’t know anyone in the industry, and was not willing to invest a good chunk of his time on it. Seriously? Don’t expect that someone will start a company with you just because you had a decent idea, especially because the idea will evolve/change as the business matures. You need to bring something concrete to the table. Ideas are just ideas… We all have tons of them.

See also Not All Angel Investors Are From HeavenImage: shutterstock.com

Have you ever had a business idea? What did you make of it? Leave us a comment!