Innovation Means Introducing New, Relevant Concepts to Your Customers

I had a talk just now with an old friend — an extremely senior business visionary who helped me put a few things into perspective about the innovations that are reshaping our world. Coming out of decades of work for Deloitte Consulting and other top names in strategy, she explained:

There’s the BUY-side, the supply chain, which has been quite important through the last few decades. A change in tax law, for example, can mean huge savings by completely re-constructing this part of the business. However, it’s not where the energy is today.

There’s the IN-side, the core business. Here are all the changes you’re making within the enterprise. Again, not where the world’s attention is aimed now.

And there’s the SELL-side. This, of course, was always important – but now it’s where the world is truly focused.Apple doesn’t manufacture anything, but they’re the brand that owns the customer relationship. All the investment being made in smart-phone apps – for example, all the concentration of Kleiner Perkins and other VCs in this area is based on the notion that the future of business is relevance to the customer, not so much difference from what competitors are offering.

Customers ask: “How can this app give me good advice that is relevant to what I want? I don’t want to see ads; I want real assistance.”

Look at the concept of innovation. Obviously the “nov” in innovation means “new,” but the “in” really means “introduction.” Netflix introduces itself as a new TV channel. That’s far more important than building new things; look at MGM that just went bankrupt for want of a way to introduce its assets to its customers.

Certainly, the concept of relevance to customers is what it’s really about. The fact that this has taken a distinctly digital twist, with our myriad mobile Internet access devices, is interesting — but it’s hardly the complete story.

Whenever we devise campaign strategies for our clients, it’s always about the unmet need vis-a-vis the customer’s lifestyle. As I’m fond of saying, “It’s not about us; it’s about them.”  We refer to this as customer-focused marketing.