It All Starts With A Problem

It All Starts With A Problem.

 

By Fredda McDonald

 

 

 

 

When we were students, most of us hated tests.  Many looked forward to graduating from the education system with the fervent hope that life would not present us with such a relentless stream of problems to solve.  But, au contraire. In business, problems are just as relentless.  The ability to look at them as fodder for innovation is the difference between companies who are plodders and those who are leaders.  And plodders will fall by the wayside in the new economy.

 

So a problem is actually a good place to start.

 

 

 

If an idea or an invention does not fundamentally solve a problem, then it’s just an idea. It is not really an innovation. Although a crisis is not always necessary to foster innovation, problem solving absolutely is.

 

The interconnectedness of business, through instant access to information around the globe has accelerated the ability of non-traditional players to disrupt traditional businesses. The advent of these new challengers is a glaring reminder that the most important currency we have to trade is our ideas.   But a framework for our ideas that includes identifying the problem to be solved is essential.

 

And the value of those ideas is directly related to their ultimate adoption, and that adoption is always linked to solving a problem. There are a plethora of new business concepts and innovations that never achieved commercial success, even though they pass the “coolness” test. For instance, a Segway is a cool product, but not widely used by consumers. Why?

 

When the Segway was first introduced, the buzz around the product reached a fever pitch.  Even Steve Jobs predicted it would be one of the most exciting inventions since the personal computer. However, over a decade later, these vehicles are still considered just a novelty. There may be a number of reasons why Segway did not achieve mass commercial success, but not solving a problem was certainly one of them.

 

To truly fit the definition of “meaningful innovation” a business idea must first address a need, improve a process, increase productivity, or make life easier.

 

Let’s take a look at some of the most successful innovations in recent years through the lens of what problem they solved.  First of all, we must talk Uber.  It’s impossible to write an article about innovation without at least a mention.  And in this context, they are an especially good example.  Anybody that ever waited in foul weather on a street corner to hail a cab understands the problem they solved.

 

How about Airbnb?  They created a revenue stream for people with spare bedrooms and created a new class of accommodations for non-traditional travelers.  A whole generation of students traveled the globe staying in youth hostels and couch surfing.  Airbnb just took that concept and enabled an easier way for travelers and their potential hosts to connect.  Problem solved, two ways!

 

Finally, how about those two Harvard MBA graduates now thinking of ways to spend their millions after solving the problem of the expensive prom dress?  Haven’t heard of them yet?  They created an online company to rent formal wear, which is traditionally worn only once and very expensive.  Just ask any parent of a teenaged girl.  It’s a problem.  Their company Rent The Runway solved for high fashion and financial relief in one fell swoop.

 

You may not be facing a crisis in your business today, but you can still drive innovation by actively looking for problems to solve. It does not matter if you are running a dress shop or driving a limo—the principle is the same.  Anything can be disrupted.

 

Everything can be innovated. 

 

 

 

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