Wednesday, November 12, 2014

Innovating from a Clean Slate

A common approach to improving a product – whether a physical good, a service process, or some combination of the two – is to begin with the product as it currently is, identify problems that create customer dissatisfaction, and solve those problems.   It is an entirely sensible practice, and one that is capable of making many small, incremental improvements to a product – but it utterly annihilates any possibility of making significant and revolutionary improvements that will create innovative improvements that amaze customers and leave competitors far behind.

The reasons for this are straightforward:
  • The as-is/to-be practice makes the assumption that the “as is” state is generally acceptable and needs only minor adjustments, so nothing revolutionary is ever considered
  • The same process tends to identify many small problems that are easy to address, so people spring to action to make “quick wins” while the bigger and stickier problems are ignored or unaddressed.
  • Where physical products and service procedures are already similar across firms in a given product category, all firms that use the as-is/to-be comparisons see the same problems and derive the same solutions, ensuring that products remain commoditized
Revolutionary improvements require revolutionary thinking, which is a different process to examining and making minor adjustments to what is known.  Innovation on this level requires clean-slate thinking, going back to the very basic assumptions about the problems that customers are facing and the ways in which products provide solutions.

As an example, consider the process of learning a foreign language.   The traditional approach to teaching language is incrementally building vocabulary and syntax: the student learns a number of words and follows models for how they can be arranged into sentences.   This model has been used in both academic courses and professional training, and is highly ineffective: it’s hard to learn a foreign language because it is not taught very well.

For many years, there was not much improvement in teaching methods, because education providers focused on improving the parts of their pedagogy without reconsidering the entire system of teaching.   That is, those who sought to improve instruction came up with different sets of vocabulary words, tailoring courses to business discussions or the common problems of international travellers – but learning vocabulary was still a matter of rote memorization of the names of things and actions out of context.  Likewise, it was recognized that classroom education (having to be in a certain place in a certain time) was inconvenient, so lessons were recorded into books, tapes, and videos that could be portable and consumed at the learner’s convenience – but the method of teaching was still the same.

These incremental improvements addressed specific inconveniences of the learning process, but kept the process the same – and the process, itself, remained broken.  As such, learning a foreign language remained a difficult and time-consuming process, and one which most people who had a desire to learn another language chose to avoid entirely, giving up on achieving their goals.

Solving this problem, and revolutionizing the language-learning problem, required stepping back from existing practices to ask the question, “how do people best learn to speak a language?” and to consider, simply enough, the manner in which a person who moves to a foreign country learn the language without classroom instruction.

Considered in that manner, it becomes obvious that people do not memorize lists of words in isolation, but learn words that they hear in the context of everyday life.  This goes both for vocabulary (how a given thing is called) as well as syntax (how an action is described in a way that identifies who is performing it and when).   The core problem, which the system ignored, was the manner of learning, not the content of the lessons.

If I’m not mistaken, the first company to solve this was Rosetta Stone, whose courses did not consist of memorizing vocabulary words and conjugations, but instead provided users with the context of a situation in which words were used and modeled the process of remembering language in context, comparing different situations, and assimilating language as part of the communication process.  And it was wildly successful because it solved the real problem.

And again, the real problem had nothing to do with the performance of parts of the as-is process of teaching, but with the nature of the process itself.   So long as education designers focused on improving the parts while ignoring they systemic problem, no significant progress was made.  They had to start over from a blank slate.  And because their competitors remained mired in incrementally improving a broken process, Rosetta Stone constituted an amazing leap forward.

The same is likely true of a great many products, to the extent that “new and improved” has become something of a joke.  Whenever a product bears that label, customers are dubious that the improvement is significant – they often have to search for what is new and different, and are often disappointed by what it is.  A “new and improved” detergent may have a different scent, and “Version 11.1” of a software product adds features that they have no use for anyway.  

Customers have become so jaded to this practice that in order to get their attention, a product has to launch under an entirely different brand to convince them that it is really different – and even then, there is the tendency for this fact to become known and for customers to spread the word that “new brand” is exactly the same as “old brand” (even if there are some minor differences).  Novelty cannot be faked.

Starting over from a clean slate is an exceedingly difficult process because the certainty of current practices and the fear that something different will not work out inexorably bring people back to considering incremental improvements to the as-is process.   “Let’s consider a new way to X” is followed very quickly by “We’ll start by looking at what we do today and considering ways to improve it.”  Because that’s easy, and because that’s safe.

To go a bit further, I will posit that this is the reason nothing good is ever created by a committee.  When people get together in groups, the fear of the unknown becomes a constant refrain in the “innovation” process – anyone with a bold, new vision is corralled back into the herd – and herds are characterized by a desire for safety and skittishness in the face of the unknown.  


But this is a transition to a much different line of thinking.

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