[jwplayer player=”1″ mediaid=”2289″]
The consulting firm A.T. Kearney published results of a client who reduced their concept development cost by 400% and generated $750 million in new sales by using Predictive Innovation. Well on the way to $ 1 billion from just one client. They are a large consumer goods company so you can likely outperform their results. Since I formalized Predictive Innovation over 12 years ago people asked for case studies about the success of using it. Hopefully, this will satisfy the fence sitters and get this innovation revolution rolling.
Some of the other results are equally fascinating. They increased their concept-to-new product conversion ratio by 9x. That type of improvement is typically unheard of in big companies. Keep in mind that their ratio is still only 27%. They can easily increase it another 3x for a total of 27x. Imagine how much your top line would grow if you released 27 new profitable products.
They also increased their project success rate 2.5x from 20% to 50% which is still low but 2.5x success meant a 300% return on investment. That beats the stuffing out of the stock market.
If you work at a large company this proves you can make large improvements. Their results were not a special case. In fact, they were low. You can do much better especially if you are in a low innovation industry. You have more opportunities for big improvement. And if you are in a high growth industry the sky is the limit. The important thing is there is a proven method to reliably create high value innovations from readily available resources.
I’ve been publicly saying for over 12 years you can predict innovation. You can get reliable results. You can drastically increase your sales and your new product success rates. Hopefully now that big firms are announcing the benefits more people will ask me to help them create the innovation results I’ve demonstrated are possible.
Yesterday I was told, “Innovation isn’t predictable. If it was predictable then they would already be doing it.” That statement shows why most people can’t innovate. Every assumption was wrong. Innovation is Predictable. Innovation MUST BE Predictable.
Innovation isn’t about new. Its about satisfying peoples unmet desires. Innovation doesn’t have to be new at all. And lots of new things don’t innovate. You must satisfy a desire. That is innovation.
As soon as you realize innovation is the act of satisfying someone’s unmet desire its obviously predictable. You can’t innovate doing the same thing. That doesn’t satisfy an unmet desire. So you automatically know a big don’t list. So you can find the innovation TO DO list.
Unmet desires are easy to find. Just ask, “What could make this better?” You will get a big list of possible improvements. And the designers, engineers and marketers knew a huge list of things they didn’t include in the current product. They chose the current features from a big list of possible features. They didn’t include every feature because some features like price and simplicity were needed. So before they ever made the current product they knew how to innovate it. They had a list of innovations.
So when you realize that Innovation is Predictable your next question is how do I predict the best innovation?