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Fat snake and the dumbbell
1.
The Fat Snake and
the Dumbbell
2.
The Fat Snake and
the Dumbbell This semantic separation of ‘better’ from ‘new’ is critically important in any form of new product development. The former is a path to self- sustaining excellence and brand reputation. The latter is a method of occasionally refreshing your product line-up, without necessarily establishing strong brand equities and longevity. One has a mid -to long- term direction; one hasn’t, necessarily. Confidential. © Seymour Powell Limited, 2010. All rights reserved.
3.
Innovation.
‘network’ or whatever you call it) and out comes a great new product. One of those words that you are sure you know the meaning of, right until you sit down and think If that were true, then you’d be coming up with about it. Is it a noun or a verb? Is it a finished brilliant new products all the time. ‘thing’ or something you’re going to do? Either way, you know you need a bunch of But it isn’t. And you’re not. whatever it is, otherwise your boss wouldn’t have been telling you how you need a lot more So, back to innovation. The word itself comes of it for at least five years now… And you’re from the Latin ‘nova’, which means new - literally pretty sure you need some innovation in order the act of creating the new. But ‘new’ is a highly to get it. But what the hell is it? subjective concept. In my experience, very few ideas are truly new. The truly new is corrosive I’ve counted more books on airport bookstands and disruptive. Ideas may be new to the about innovation recently than even those on person, category or industry receiving them and macroeconomics and global financial suicide. that’s fine, but you’re not actually looking for the I’ve sat through countless conferences on it and totally new here, usually. And if you were, you’d I’ve come to a dreadful conclusion: most of never get your new product or service off the what I hear and read about it seems to be ground in the first place. Why? Because, if regurgitated hogwash, propagated by people you’re like most businesses, those consumers who have realised that making a list of ‘10 you put into a focus group as part of your critical innovation success factors’, and touring pipeline of development won’t recognise your it on the lecture circuit, is a much easier way of ‘new’, so you’ll get poor scores and your boss making money than actually innovating. will tell you not to do it. And the ‘new’ is untried and therefore very ‘risky’ (aha, another one of Eventually, I realised what’s going on here. those words your boss hates), so that’ll stop it Each of these books, or prophets or medicine- in its tracks too. show hucksters is generally making the same simple error: that the process of coming up with In fact, it’s very likely that your entire business is a brilliant, unexpected and relevant new idea – structured specifically to do what it was doing and then actually putting it into production – can yesterday, but with a little twist, so you can keep actually be codified, made into an equation; that investment to a minimum whilst getting the most it can be reduced to a single, linear process, out of what you do already, and calling it new. where you chuck anything or anyone into the Be honest. Why would you do anything new if product development funnel (or ‘pipeline’ or you could sell the same stuff year in, year out at Confidential. © Seymour Powell Limited, 2010. All rights reserved.
4.
a great profit?
Maybe the only reason you’re or something that adds another bullet on the looking for new is that your ‘old’ has stopped packaging, as in: ‘Hey look, it does this and working, or you think it’s in danger of doing so. this’. The communication tail was wagging the Or because a competitor is eating your lunch. product dog. Anyway, new on its own isn’t that useful really, because new rapidly becomes old. And if new What Tefal got, however, was a feature and a is all you got, you have to do another new very benefit: the world’s first cordless kettle. Yes, the quickly just to stay up there. one you have at home. A quarter of a century on, over 80 per cent of electric kettles sold in ‘Better’ is much more useful. Europe use that idea. The reason for this is that a cordless kettle is better than one with the cable stuck up its kazoo. But sometimes, better takes time to sink in. Only when used were the benefits of a cordless Completely new doesn’t happen kettle fully revealed. Yet the need for it was very often in big companies already written into human behaviour. You only had to watch people pulling the lead out of the – especially manufacturing back of a conventional kettle, instead of companies – because they switching it off at the mains, to realise that we are not set up for it. And the were all breaking the rules. We were doing what we do as adaptive organisms – working around ‘incremental new’ seldom problems. And this behaviour has the habit of contains a vision of where the covering up glaring inadequacies in the system. incremental changes are leading, This semantic separation of ‘better’ from ‘new’ so things tend to stay the same. is critically important in any form of new product development. The former is a path to self- sustaining excellence and brand reputation. Twenty-six years ago, Tefal asked The latter is a method of occasionally refreshing Seymourpowell to come up with a new kettle your product line-up without necessarily that had a feature in the design. Not a benefit: establishing strong brand equities and longevity. a feature. The whole marketing mechanism One has a mid -to long- term direction; one suddenly jumped into sharp relief for me. hasn’t, necessarily. But this is where things start A feature is something that you can talk about to get a little difficult. Demonstrating ‘new’ to a Confidential. © Seymour Powell Limited, 2010. All rights reserved.
5.
focus group is
a relatively straightforward thing there isn’t something lurking in the future that to do, but obtaining useful metrics on what changes the game. If you’re in the dishwasher- someone will want two years from now tablet business right now, you are probably (determining whether the new is relevant, which making reasonable money out of it in the is the point of the research) is a different matter western world. But what if, as has happened in altogether. As Steve Jobs, the mercurial doyen Japan, some smart-arse designs a machine of Apple, once said: that uses ultrasound rather than surfactant to clean the plates? Then you could be plumb out ‘It’s not the consumer’s job to know what they’re of luck, because you own only half the problem. going to want, it’s my job.’ But most businesses are systemically resistant This from the man who, single-handed, to change. Consider the shampoo example. reinvented the retail music industry right under Forty years ago there was something called the noses of those whose lunch it most certainly shampoo. Then someone said ‘This is cleaning was. the hair, but it’s also stripping off the natural oils that make the hair shine and look good…so let’s The problem, for those trying to create ‘better’, is that very few people are capable of projecting their needs into an imagined, future world that is slightly different from the present, and in which their requirements may have shifted. Great products, and services, The other form of ‘better’ – the incremental are those that are desirable and improvement of the existing – is usually easier to deal with. A new shampoo that makes your hair relevant. Not just new. They 15 per cent more shiny than the last one is have an underlying ethos, which easily understood and it scarcely rocks the boat. And people will still have hair ten years is usually about being better in from now, so the problem is the same in the some way. The Dumbbell lets us future as it is now, yes? So if we tackle the get to the better, by making sure issue incrementally, we’ll still have a shampoo business ten years from now, won’t we? Yes, we always know what is really unless a competitor produces a way of cleaning needed and desired. hair that doesn’t need a shampoo, or even water, for that matter. Incremental only works if Confidential. © Seymour Powell Limited, 2010. All rights reserved.
6.
put them back
again!’ And conditioner was something big: a thin line with a big bulge in the born. After this, you could sell two things middle. Many companies crank up a new instead of just one. Magic. But since then? programme with very little idea of where they may be going with it. They trundle along, doing Nada. the easy stuff (brief writing, stake holder interviews, proposed network etc), then arrive at The hair washing/conditioning process is ripe the hard bit: coming up with actual ideas and for a complete reinvention, so why does it not researching them. This is the bulge in the happen? Not because there isn’t a brilliant, snake. Here, each incremental step in the sustainable, morally defensible, cash-generating process is chopped up, stuck on a board, alternative concept available, but because the exposed to ‘consumers’, re-hashed, re- Big Goo companies are set up specifically to exposed to consumers, beaten and banjaxed make lots of what they already make. And they and then, finally, set off into the marketplace. have Business Categories that want things to stay nearly the same. And the big retailers have From that point on you lose interest and set off shelf categories specifically set up to go on on the journey all over again (or rather, the receiving things that are nearly the same... person who takes over your job does). That’s the thin bit after the fat bit on the snake. But the Completely new doesn’t happen very often in product is a mish-mash of confused messages big companies – especially manufacturing and opinions, led by the very people you companies – because they are not set up for it. thought you were appealing to. And notice that And the ‘incremental new’ seldom contains a no knowledge passes into the system.. The vision of where the incremental changes are business suffers from ‘corporate amnesia’ and leading, so things tend to stay the same. Add to probably ends up repeating the mistake over this the fact that the average marketeer is only in and over again. their job for about 18 months before they jump ship and you realise that there’s often no one Sound familiar? with the will to make big changes anyway. The alternative to this process is the Dumbbell So how do the really clever people get – a thin line with a big bulge at each end. In this over this? scenario, you begin by finding out as much as By using the Dumbbell, not the Fat Snake. you possibly can about the habits, motives, dreams and desires of your target market. Imagine your typical new product development When you’ve got a really clear idea of exactly process is shaped like a snake that’s swallowed what they are really looking for or need (the first Confidential. © Seymour Powell Limited, 2010. All rights reserved.
7.
dumbbell), you run
fast and true to develop and But this time, the village is the world. create the solution and you get it out there in If you’re not better, there is nowhere to hide. the marketplace (the thin bit). Then you start But if you truly are better, people will get to hear your real research again, with the actual product about it. The more you spend on getting the in the hands of the purchaser. Only then can product or service better, the less you’ll have to they really tell you what they like and don’t like spend on shouting about it, because somebody about it. You do a lot of this and get a very clear else will do it for you – your consumer. idea of what is needed next. Then you drop this knowledge (the second ball) into the first ball on So let’s be better. The Latin for better is ‘melior’. the dumbbell and start all over again, this time with real, honest-to-goodness truth behind you. Innovation is dead. Every time you repeat this, you enlarge the observatory of knowledge you’ve been building. Long live amelioration. This is exactly what the most quoted example of successful innovation – Apple – does continually. It may take Apple just 16 months to put a new product into production, but it’s been planned for years. Apple’s not adapting to competitive changes in the market, but taking If you’re not better, there is control of its own future, leaving competitors nowhere to hide. But if you rocking in the jet-wash of its impudence. It’s leading. And each step is better than the last, truly are better, people will get because they know where they’re going. to hear about it. The more you Great products, and services, are those that are spend on getting the product or desirable and relevant. Not just new. They have service better, the less you’ll have an underlying ethos, which is usually about to spend on shouting about it, being better in some way. The Dumbbell lets us get to the better, by making sure we always because somebody else will do it know what is really needed and desired. for you – your consumer. And 21st century marketing is about being better. We are back to the Middle Ages in communication terms: if the blacksmith in the village is crap we all know immediately. To find out more please contact design@seymourpowell.com Confidential. © Seymour Powell Limited, 2010. All rights reserved.
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