Each Matrix Thinking diagrams carries a bold banner at the bottom called “Consequential Change”. This asks you to think about the consequences of your innovation.
The boldest ever
The A380 Airbus would probably rank as one of the boldest ever innovations. To even contemplate this was breathtaking. The consequence of introducing the A380 was the need for runways and taxiways at all major hubs worldwide to be upgraded and all terminal building to have a second loading deck. The risk of this being a disaster were vast as the redevelopment costs at all major airports was immense.
Fortunately, the A380 is an outstanding success.
Apple and the iPhone
When Apple introduced the smartphone they virtually killed their market for iPods. However, they clearly had thought about this and so innovated the standard iPod by introducing the Nano. But the iPhone with vast data storage, coupled with its connectivity via GSM or Wi-Fi, paved the way for the creation of iTunes and the App Store, a hugely profitable business in itself. A marvellous consequence!
How about wine labels
Recently an Australian company introduced a thermo-chromatic label for red wines, the idea being that the label colour would indicate the ideal drinking temperature. I wonder if the prudent wine drinker when selecting a nice bottle may too often pass over this one as not “just the right temperature” wine and choose another, not so labeled?
How about locks?
We worked with an innovator with the “perfect” lock that the user could re-key themselves in seconds for less than one dollar. When presented with this, understandably lock companies were less than enthusiastic. Such a lock bypassed locksmiths, one of their major routes to market. The last thing we should do is threaten our channel.
It’s happening anyway!
The consequences for retailers of online shopping have been catastrophic as they operate without the vast overheads of staff, premises and stock. However, in this case the force is unstoppable and we are now see major retailers developing their own e-based channels.
UBER and Airbnb are other examples. Banks may be next, now being firmly in the sights of innovators.
What’s the message?
Innovation needs to be developed with the market consequences in mind, the upside being if you can threaten a major player with your innovation, there is a good chance you will be bought out in very short order for great financial gain.
Roger La Salle, www.innovationtraining.com.au
