Fuck Market Research | Is a digital transformation like a romcom makeover ?
Gumi & Company
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In today's letter;
One of the tenets of successful product development is market research- thorough and robust. It gives you valuable insights into the trends, preferences, pain points, and specific needs of your intended target market that enables you to build a product that resonates with them.
However, in fast-moving, technology-driven, or rapidly-evolving industries and markets, sometimes, your thorough and robust market research may cause you to miss market-leading opportunities, competitive edge, or lose relevance and market fit.
It is said (and it is true) that your chances of product development success are higher with comprehensive/formal market research, but some companies have found success without it and here’s what was unique about them:
??Niche markets: In niche markets with a highly specific target audience and limited competition, businesses may be able to succeed without extensive market research
??Existing knowledge: A FMCG company or one with significant interest in agro and agro-allied products, or even a media company, that has in-depth understanding of their markets through past experiences or vibrant existing relationships- with peers and customers- can successfully take products to market without formal market research
??Early adopters: Markets with a relatively large early adopter market segment benefit from having a lot of early adopters willing to try and support their new product, without prior comprehensive research.
?Iterative approach: applying an iterative (agile) approach, some businesses skip comprehensive market research and launch MVPs, adapting their product based on customer feedback
??Sheer luck or accidental timing.
Conducting research (undoubtedly) significantly improves the odds of your new product achieving success and sustainability in your market. That being said, some products have found, are finding, and will find success without formal research. So, do you possess any of the unique characteristics listed? Maybe go for it. Test it fast. You never know.
There’s a particular plot direction a lot of 90s and early 2000s romcoms used to take, especially if they were set in high school.
?? Girl’s life isn’t great
?? Girl meets people whose lives are great
?? Those people take pity on girl and give her a makeover,
introducing her to the cool/better side of life
??? Girl’s life is fixed… for now.
For some organizations, digitalization sounds like getting a makeover and the promise of it can feel as exciting. You get to throw out outdated systems, introduce new and functional tools, a trim here and a shiny new interface there, and so on.
Like many a made-over girl in a romcom, businesses might still find themselves running into old problems which they expected to be resolved by embracing (new) technology. But, makeovers usually focus only on the appearance of a person and do not fix their insides. Whatever issues existed before will still exist, but they’ll come in better packaging for sure. In the same way, cultural, managerial and other challenges that characterize a business cannot be magicked away simply with whatever AI bot is making the rounds at the time. This is why change management is a crucial part of the digital transformation process.
It allows an organization to reap the benefits of leveraging technology (to the extent that is required, from new software to overhauling business models) without losing sight of its core and paying attention to any existing issues/factors that affect not just the transformation process but by extension, the organization’s success as well. It does so by:
???Identifying potential sources of resistance and addressing them proactively
???Aligning transformation with business objectives and its strategic vision
???Training and development to upskill or reskill employees
???Carrying out risk assessment and implementing mitigation strategies
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???Establishing a culture of continuous improvement and innovation
So, digital transformation is like a makeover, except it’s better, when done right. Like the folks?Gumi & Company?do.
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Standard, well-run companies focus on operational efficiency and effectiveness, which means employees are often occupied with repetitive tasks. This is understandable, as it is important to do one thing well and make money from it. However, this can also make it difficult to stay ahead of the competition.
Then you have Google, whose "20% time" rule allows employees to spend 20% of their time working on new projects that they think will benefit the company. This has led to the development of some of Google's most successful products, such as Google News, Gmail, and AdSense.
Your organization may only afford to be somewhere in between, so here are a few things that can be done to encourage innovation:
?? ♂? Encourage employees to surface new ideas. This could be done through a formal policy or simply by creating a culture where employees feel comfortable sharing their ideas.
?? ?? Provide training on the innovation process. This will help employees learn how to select, experiment with, and test new ideas without disrupting business-as-usual.
? Commit resources to innovation. This could include financial resources for incubators or accelerator programs, or non-financial resources such as time and access to data.
Innovation is not easy, but it is essential for staying ahead of your competition. By following the tips above, companies can create a culture of innovation that will help them succeed in the long term.
Here are some additional points that I would like to make:
? The "20% time" rule is not a magic bullet, but it can be a powerful tool to drive innovation.
?? ?? Innovation is not just about coming up with new ideas. It is also about testing and iterating on those ideas until you find successful growth-generating ideas.
?? Companies that are willing to invest in innovation are more successful, long term.
Simple.
??Got questions you'd like answers to ?
Ask us in the comments and we'll get to it here or in our next perspectives.
As always, Yours in Innovation,
?? Gumi's Lumies