In my last Breakthrough Insights blog post, I talked about leading market-driven innovation, defining true innovation vs. new product development (which many businesses mask as innovation). But what are the principles of leading market-driven innovation?
The 6 Principles of Leading Market-Driven Innovation
There are six basic principles of market-driven innovation that enable innovation success:
- Engineering/technical resourcing decisions that are made based on a validated market opportunity and an attractive business case
- Organizational focus achieved from understanding application markets and targeting the most attractive segments for growth
- A cross-functional team approach, where marketing and technical both contribute to the growth initiative, and thus are aligned on the strategy
- Accelerated ramp-up that occurs after launch from greater operational knowledge of the market
- Technology development that is accelerated because better design specifications are captured from a targeted market
- Business leaders who make resource allocation decisions consistent with the strategic direction of the business, and link development to the marketing process
As we examine these six principles, it becomes clear that market-driven innovation is driven by getting everyone on the same page early on, and focusing on the work that needs to be done by everyone. The catalyst to bring the team together is the centric element of the market and the key customers who make the market real.
In my next Breakthrough Insights blog post, I will discuss creating the right mindset for leading market-driven innovation. Stay tuned.