What are the most effective strategies for managing product innovation during obsolescence?

We should always hear our customer and analyze both quantitative and qualitative data proactively to know when to pivot and how. Quantitative research involves analyzing market trends, sales data, and customer feedback. For instance, Nokia's decline in mobile phone sales was partly due to its inability to keep up with touchscreen trends. Qualitative research, on the other hand, involves understanding consumer attitudes, conducting surveys, and gauging sentiment on social media. If customer reviews express dissatisfaction with outdated features or highlight emerging needs, it's a red flag. Kodak, for instance, faced obsolescence as digital photography gained traction, and their film-based business model became outdated.

The synergy of innovation evaluation and a capable team, making timely and strategic product pivots, is instrumental in extending a product's life. Regular assessment of market dynamics, technological shifts, and consumer needs allows for proactive adaptations. A prime example is Apple's transformative introduction of the iPhone, reinvigorating the company and reshaping the industry. With the right team, adept at recognizing opportunities and implementing changes effectively, a product remains dynamic and relevant.

At this step, determine whether you are going to stay or move on. If you choose to stay, make sure your margin keeps you in the money. Also, communicate loudly to all your customers, you will be with them to the end. This loyalty to your market should provoke some customers to immediately stock up (potentially). Also, contact your competitors customers and let them you will handle any of their needs as well. If you are choosing to vacate that market, communicate this also to your customers. Let them know the timing of your departure, what you are moving to and what other products/processes of yours that might fit the void as you move on.

It's imperative to embrace a holistic approach. One should go beyond conventional methodologies, capturing users' natural product interaction behavior is a pivotal metric. Observing how users naturally engage provides critical insights into their experience, preferences, and pain points. Augmenting traditional feedback channels with this real-world interaction data enhances the depth of understanding. Regularly analyze user behavior, interpret patterns, and adapt product strategies accordingly. By combining the quantitative with the qualitative, one can proactively shape products that resonate with their users.

Having the customer need being the North Star helps keep innovation consistent. At the end of a product life cycle, the customer reactions, feedback and behaviour should be the guiding light on what next and why. And when this “new” need is identified, take the customer alongside through surveys, interviews, AB test etc.

Testing and validating innovations before a full launch is indeed crucial. An additional key benefit of this approach is the cost-effectiveness and speed it offers. Using methods like MVP, prototyping, or beta testing not only minimizes financial risks but also accelerates the feedback loop. This enables us to iterate and refine our solutions with early customer input, saving time and resources before fully committing to development.

If you product is foreseen to have a fast obsolescence….. Research & Innovate fast and with stamina to already have the next generation of products prepared. Obsolescence require speed and resource in the developments.