 "Josh Linkner")
THE ROAD TO REINVENTION: HOW TO DRIVE DISRUPTION AND ACCELERATE TRANSFORMATION
AUTHOR: Josh Linkner
PUBLISHER: Wiley
PRICE: Rs 599
ISBN: 9788126552719
Your bolt manufacturer, version 3.1. Your landscaping service, version 2.0. Your bridal shop, version 5.2. Maybe if other industries embraced the practice of reinventing new versions of their core offerings on a regular basis, they would enjoy some of the other benefits that software companies have: talented people, huge valuations, fully engaged cultures, and deeply loyal customers.
Software companies are in a constant state of reinventing their core product. As soon as one version reaches the market, they start imagining the next. The goal each time is to blow their flagship out of the water with the new release.
The process goes something like this: even in advance of launching one version, the most successful software developers begin gathering insight and feedback from customers, vendors, the media, and team members. Software companies know they have to be tuned in to these audiences. Rather than shunting aside feedback on their most popular products, these companies want to know what went wrong in previous versions, what went right, and what was missing entirely. They also begin aggressive brainstorming sessions that explore the boundaries of what could be. They aren't there to fiercely protect the sanctity of their past offering and they aren't afraid of the unknown.
Whether your own organisation sells cleaning supplies, packages free-range chickens, or assembles custom cabinetry, it's time to think like a software company and launch your next version. How could you bring a whole new set of competitive advantages to market? New value to customers? Better features? A faster supply chain? Your next feature must entail something that would be as remarkable and engaging as the spark that got your customers excited in the first place.
If you don't make your market successes obsolete, someone else will. That's why start-ups are often the driving force of disruptive creativity. A case in point is the disruption of presentation software. Bad Microsoft PowerPoint presentations have reached the same punch line status as lawyer jokes, but most of us still use this tool. Some have moved to other programs, such as Apple's Keynote, which has cool transitions and flaming bullet points, but it is still essentially the same thing: a linear presentation system.
A hot new start-up company, Prezi (Prezi.com), finally broke the mold. Rather than step-by-step sequential presentations, Prezi has an entirely different approach. Users begin with a giant canvas on which to post all kinds of content (e.g. text, images, video, sound, designs, graphs). Once the elements are on your canvas, you can easily move to any piece of content at any time. You can create a specific path if you want (or several different paths), or you can just improvise the order of your presentation based on your interaction with the audience. The tool also allows you to zoom in or out on any piece of content and, of course, make cool visual transitions. Instead of incremental improvement, Prezi architected the first truly revolutionary presentation tool in the past ten years.
So why did it come from a start-up instead of Microsoft? Why do most breakthroughs come from nimble and hungry entrepreneurs instead of well-established incumbents with endless resources? Why did the brilliant idea for Zipcar come from a start-up instead of Hertz or Avis? How come Red Bull didn't originate from Coca-Cola or Pepsi?
The answer is simple: most large organizations exist to protect old ideas, not create new ones. To them, innovation is about incremental improvements, not reinvention. Many of us punch the clock at large bureaucracies that are more focused on compliance than creativity. Obedience is valued over imagination.
It doesn't have to be that way. Whether we work in a big company or a start-up, the research clearly shows that all people have tremendous creative capacity. We all have the opportunity to develop our imagination, shatter boundaries, and invent a brighter future. We'll never really take advantage of those opportunities, however, if we're unwilling to challenge our past wins. When you're exploring areas for innovation in your organization - or in your life - remember to go deep. Your most sustainable advantage in any marketplace lies in your ability to remain constantly engaged in reinventing your core strengths.
Getting H.O.S.E.’d
Throughout your efforts to reinvent your offering, stay focused on differentiation. You must ensure that your new plastic fastener, investment service, or entertainment venue is substantially different from all the others on the market. A good litmus test is to ensure you H.O.S.E. the competition by delivering a new product or service:
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High value: Just because you can do something doesn't mean you should. Your new product must deliver exceptional value to your customer. Unless it solves a real problem in a meaningful way, forget about it.
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Original: Getting confused with a competitor should be the greatest business insult of all. Keep your offering uniquely you so it always stands out.
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Significant: A minuscule product improvement will go largely unnoticed. Go big by breaking the mold of the past and launching something that truly matters.
- Emotionally charged: Product features may stimulate inventors but they won't motivate your customers to leap into action. If your product evokes passion, customers will line up to buy.
Josh Linkner
Author Speak
Software companies launch new products with unfailing regularity rendering the older ones obsolete. They are a good benchmark of reinvention, Linkner tells Ankita Rai
A lot of Web start-ups today have similar offerings. With competition getting fierce, it is difficult to find somebody who isn't working on something similar to what one is thinking about. Given this, how does the 10x factor (new offering should be 10 times better than the market leader) work?
There are many ways to 10X a business. It could be the product experience, supplychain, culture, financial model, customer focus etc. I do think a new company needs to strive for 10X advantage since launching and winning is very tough in a competitive landscape. In emerging markets, this still applies. Keep in mind, being 10X better may be different in some markets because the competition isn't as mature. That said, the best way to get on top and stay there is by offering highly differentiated, stronger products and services or at least 10X your approach if the product is a commodity.
When is the right time for a company to approach reinvention?
The best companies think of reinvention as an ongoing process. One good benchmark here are software companies. They launch new products coming out with newer versions almost every year, rendering older ones obsolete. Traditional industries can learn a lot here, since this sort of ongoing and continuous reinvention is what keeps a company's profits and its base of customers growing.
What are some of the mistakes companies commit while trying to reinvent their offerings?
Companies often try to do too much at once. It is better to do isolated experiments where you can test measure and refine. Companies should tackle one aspect of their business at a time, reinvent it and then move on to the next. Make sure you are staying true to your principles as a company and also staying connected to the problems you solve for real customers.
Josh Linkner
author & CEO, Detroit Venture Partners
author & CEO, Detroit Venture Partners
Reprinted by permission of Wiley. Excerpted from 'The Road to Reinvention: How to Drive Disruption and Accelerate Transformation' by Josh Linkner. Copyright@2014 by Josh Linkner. All rights reserved
