How can innovation help you prioritize your product strategy?

Co-create your innovation ambition with your team. Use the Jobs to be done theory by Clayton Christensen to identify what is needed and what is the precise job that your innovative solution will be hired for. Use more verbs and less nouns to define your innovation vision. For example, the use of “innovating” instead of “innovation” places emphasises on doing and actioning and is more likely to generate more action towards getting things done.

Find ways to iterate as fast as possible. You need to find where you are best, not just diving the problem, but also do it better than the competency. Make no mistake, this applies to all products: software, but also hardware, including manufacturing. You don't need to develop a full product before testing whether it is better or not. Be wild and challenge yourself to iterate before you know it all!

Whether it is a large scale development program or a political assessment program , my experience has been that we need to first know where we are going. In short what do we need(exact output in words) needs to be put down or it becomes a jamboree for the creative. The frustration and realization of a failed project can bog down any new innovation project. Hence my advice on perfecting the blueprint, before actually starting the journey. Another piece of advice is, as you define the sandbox, keep the sandbox as large as possible.

Innovation and then product positioning will help identify the gap and the target markets. Which in turn will help design a product strategy.

Innovation plays a pivotal role in prioritizing product strategy by driving the development of cutting-edge, market-responsive products and staying relevant as a mature company. Innovation encourages the exploration of new technologies &scientific advancements, ensuring that products not only meet current demands but also anticipate future trends. This forward-looking approach is crucial in maintaining a competitive edge, especially in fast-evolving industries. By embedding innovation at the core of product strategy, it becomes possible to create offerings that are not merely solutions for today, but are also scalable and adaptable for future challenges and opportunities.

Something useful to consider is what motivates your team. While it's important to focus on what it's important (??), you'd normally have more than one development at the same time. Include projects that also motivate your people so the commitment and results increase.

A portfolio approach allows you to allocate your resources and efforts across different types of innovation projects, depending on their potential impact & uncertainty. For example, you can use the innovation matrix or three horizons framework to categorize your projects into core, adjacent, or transformational, and balance your portfolio accordingly. This will help you understand which projects to invest in, how much to invest in each project, and when to shift focus between different types of innovation. It can also help you decide which ones are worth investing in long-term. You can also use metrics such as return on investment, customer satisfaction, and market share to assess which projects should be given priority in the portfolio.

Often, the measurement of outcomes focuses on just the variable(s) being considered, but could lead to some other unintended and undesirable consequences that might be critical in the bigger scheme of things. E.g., the goal of improving quality might come at an unacceptable cost to human motivation. Or, the topline growth might create unsustainable pressure on the bottom line. Identifying such "counter metrics" is crucial to ensure that the innovation doesn't create lopsided outcomes. If these are not tracked closely, the progress in one part of the product might, in fact inadvertently lead to more damage in another part of the product or even the business! I call it "operation successful but the patient died".

if you are refering to major innovation this is a good approach, but the issue of deciding at what time spans to use for which metric is quite fraught... or am i off the track

A comprehensive product strategy extends beyond innovation, encompassing customer insights, market analysis, sustainability, ethical practices, and the integration of advanced technologies. It also involves strategic resource allocation, rigorous risk management, maintaining agility, fostering collaborations, and making data-driven decisions. These elements, combined with a long-term vision, ensure that the product strategy is not only aligned with current market demands and technological trends, but also geared towards sustainable growth and resilience in an ever-evolving business landscape.

One common mistake entrepreneurs make is believing that an innovative product beats a non-innovative one in customers’ minds (and wallets). They fail to realize that people dislike change and favor practicality. For instance, mobile payment apps ten years ago overestimated their interest for consumers. They scorned low-tech solutions such as payment cards, which did the job just fine. The main competition for an innovative product is often not another one, but doing nothing. Founders should systematically ask themselves: How do customers solve the issue today?

Measuring impactful innovation is very tough. Innovation is like an infant baby that toddles and directs in possible ways. My innovations are non-interpretable in terms of service or product. In 2006, I was first introduced to the word innovation in one of my MBA academic pursuits but realized I was an academic failure. Even later when I started working on several innovative entrepreneurial setups (almost 10+) all went out of operation and this continued to date leading to professional failure. Innovation is tough, expensive, challenging, and almost difficult to fathom, it's the non-replaceable, non-repeatable, non-negotiable commodity of success.