When you think of an innovation process, you might picture a room full of sticky notes, sketches, and diagrams. A half-finished coffee and a diverse group of people sharing ideas in a chaotic setting.
Yes, these innovation labs are common, but… what’s happening inside that room? Are people just brainstorming ideas, or is there a true Innovation Team at work?
Many companies invest millions in R&D only to realize that their ideas lack real demand. This often happens because they approach innovation from two flawed perspectives:
An idea-driven approach: Generating multiple concepts, testing them with customers, and iterating until something works (a costly and slow method).
A needs-driven approach: Identifying all customer needs before proposing solutions (but it’s not always easy to determine what constitutes a real need).
Now, you might wonder: Shouldn’t innovation be based on customer needs? Not exactly. Outcome-driven innovation (ODI) shifts the paradigm by focusing on customer problems rather than their perceived needs.
For example, people don’t buy a drill because they want a drill or even because they need to make holes. They buy it to solve a problem—perhaps to hang a picture. This subtle difference in how we approach innovation is crucial because it revolves around understanding the "jobs to be done" that customers are trying to accomplish.
Or, put another way: The real transformation happens when we stop asking what the customer wants and start understanding what they are trying to achieve.
Innovation should not be an act of spontaneous inspiration or trial and error. The most common mistake is focusing on the product rather than the purpose. Remember: People don’t buy tools; they buy results.