Inventing Future with Challenging Questions

Inventing future with Challenging Questions

In continuation of my earlier article, titled , "Nine Nuggets of Wisdom" in improving Innovation eco system , through this article, I am sharing my thoughts on the first nugget, Challenging question.

What all triggers a radical Innovation in an established business ? Is it an idea? Is it a Challenging question? Is it a dream? Is it a constraint? Is it a new technology? Or Is it following the trends ?

 There is perhaps a thin line separating all the above, and I would place my bet on the Consumer centric, Challenging Question surfaced, since they more often , lead to a radical Innovation.

 How does one define a challenging question?

 Challenging questions are questions that are raised, for which a) Answers are not immediately known b) And when answers are found , it can create a great impact on Business.

Is there a process for Surfacing Challenging questions?

The next thing to know perhaps would be, in understanding, is there a process / method in arriving at challenging questions ? Before answering this, I would categorise challenging questions in to two parts 1) Challenging questions from within ( inside out ) 2) Challenging questions from outside ( Outside in ) . Let us look at both in little more details.

Challenging Questions from within : There are three ways by which challenging questions can be surfaced 1) Crafting a compelling dream 2) Assumed constraints 3) Analysing the existing business model

Crafting a compelling dream : The dream or the mission statement crafted , should go beyond the financial numbers of the business , and define the WHY ( the purpose ) part of being in business.

As an example , the co-created Mission statement of Titan Jewellery divisions , went beyond limiting itself to creating wealth for its stake holders and in addition articulating “ being a Gold standard in transforming the retailing and manufacturing of Jewellery trade” in India. From the mission statement the challenging Questions being surfaced are two fold A ) How do you transform the retailing of gold jewellery , with the current ( accepted) practice of selling under karatage Jewellery ? B) How do you transform the primitive working condition of Karigar’s (Gold Smith) and improve their life style ?

 The result , Karat meter introduced in retail by Tanishq, way back in ealy 2000, had triggered millions of customers( over a decades time ) in getting right Karatage gold , as the industry had started transforming. The karigar’s ( Gold Smith ) work place , through the initiatives like Mr. Perfect & Karigar Centre , had substantially improved not only the working standards of the Karigar’s, but have also changed their life style. Winning the confidence of karigar fraternity had helped us to implement many new initiatives resulting in manufacturing lead time crashing to 6 days ( from 35 days ) and helping us in managing with 1/6th of inventory.

Assumed Constraints : Generally people have a tendency spend 100% of their time , to fix what is not working well and most often , the areas working well are not focussed ( till it becomes a problem ). We need to proactively look at what is working well, and what can, go wrong in this, and list down the possible futuristic constraints and come up with challenging questions .

As an example again from Titan Jewellery division , the challenging question posed to the Manufacturing and supply chain team was , Should the requirement from retail increases ten fold in the next five years , how will we gear up to meet the same ? In 2006, by the time this question was raised, the Supply chain function was quite stable with 10 years of established processes in supporting retail. The challenging question led to the initiative christened as “ Simplify & Automate “ , inspiring employees to search for how they can simplify & automate, by questioning the established processes , rather than merely repeating the same process for futuristic increase in demand.

The result : Diamond bagging operation, a manpower intensive operation was automated . A robotic equipment was conceived and developed. This had helped Titan in redeploying over 100 Employees in other areas. This automation was first to the world and a patent pending invention. The other area, called as Kit Marshalling , in which the kits from different department are sorted work order wise. Here again automation have helped in releasing over 100 Casual labourers involved, and has made the manufacturing to be future ready.

 Analysing the Business Model : The business model design, as described by Alexander Osterwalder, consists of nine building blocks . While all the building blocks are inter connected , the intelligence lies in identifying the most critical building block, and Coming out with a challenging question in disrupting it.

                                                                                                                                                                      Example : Again from Titan Jewellery division , It is a known fact that selling a diamond jewellery gives the retailer much more gross margin, as compared to selling a plain gold product. The challenging question therefore was in disrupting the Revenue stream with a challenging question, “ How do we double our diamond sale in 2009 / 2010 ? In the earlier years, following the conventional budgeting process, encouraged everyone in preparing an increase in revenue and profit of around, 20% year on year. And these targets were uniformly met. The challenging question posed, made managers to think in different ways in adding new customers to buy diamond jewellery.

The result : In 2009 / 2010 Titan witnessed a growth of 79% in diamond jewellery sale , with around 30% more profits than what had been budgeted, evincing huge respect from the investors.

Challenging questions from outside: There are two methods to surface challenging questions 1) Understanding the UDE (Undesirable effect ) and UFN ( Unfulfilled needs ) of our customers . 2) Technology & Trends

Understanding UDE & UFN : First let us start with defining the UDE . UDE is a limitation that the customer faces in using your offering. After identifying the limitations by immersing oneself in the customers world , new value can be created by removing a significant limitation that the customer was facing ( in a way that he had not experienced before )

As an example , let us take the ceiling fan Industry. While many advancements on energy efficiency, aesthetic appeal are taking place in this industry , the significant customer limitation perhaps is cleaning the blades of the ceiling fan. The first one to find a solution to this challenging question (How do I enable my customers in cleaning the fan blades easily? ) will be a winner in the market place . Likewise the Passenger car breaking down is a UDE in passenger car industry, Inability to accommodate a spare tyre is a significant UDE in the motor cycle industry. The customer accessibility of top cabinets in the kitchen , the edible oil spillage while use , The watch stopping to work when the battery life is completed are some of the UDE leading to challenging questions.

Coming to UFN , the unfulfilled need , One needs to think on what else on one’s offering, can do to his customer in evincing a wow from him. In other words what is that one can do, in raising the quality of one’s offering or creating some new features that can delight the customer.

As an example , How can I make the watch I am selling, in alerting the customer on the inauspicious times of every day ? Can my fan while in use (or not in use) help repel the mosquito in customers room. Can I make and supply Edible oil in granules (like sugar)? , Can I make onion flavoured edible oil, helping my customer in avoiding cutting onion ? How can I make and sell ice creams , with a heat resistant coat , to enable my customers to carry it along with them ( like chocolates ) when he is travelling ? How can I find a way to help my customer to clean his car in flat 30 Seconds. These are examples of challenging questions, for which when answers are found , the customer base can substantially grow.

Technology & Trends : Challenging questions can be surfaced by carefully following the technological advancements ( from any industry ) and following the mega trend , economic trend , consumer trend , and regulatory trends.                                                                                                   Some examples , Can I have a 3D printer in my jewellery show room, empowering my customer to design and deliver his jewellery in 10 Minutes Time? Can I develop a jewellery using smart sensor, which helps my customer in quickly getting help while in dire situation? How can my watch act as an access card in Metro station entry? How can I help my customer in overcoming the blinding glare (in night driving) caused by the vehicles from the opposite direction?

Summing up :

“The best way to predict the future is to invent it.”

Inventing future, begins with ,surfacing consumer centric challenging questions.

                                                                                                                                                    Challenging questions not only inspires employees, but also enable people in thinking beyond their routine , and acts as a platform for developing themselves. Challenging questions also helps in defining the next contour of one’s performance engine. I believe that, the first step in any ones Innovation journey, lies in spotting, consumer centric, challenging questions. The second step is in skilling and inspiring employees in coming out with ideas. The third step lies in intelligent risk taking.

Therefore “Are you ready with your Challenging Questions ?? “

Happy Innovating

L.R.Natarajan