Technology: Enabler or Driver of Innovation

We are used to thinking that technology and innovation are the same things, and many times we wonder how the technologies available today will change the world and improve our lives. We wonder how to use artificial intelligence to create futuristic solutions, or how to create a new cryptocurrency in the blockchain.

I think the real question is what technology can help us improve the way we work, the way we process, the way we organize our days or our work, or the goods or services we have to offer. Well, I see technology as a driver of innovation, not its engine. Innovation produces a reduction in the time it takes us to carry out a process or an improvement in the end product, but not all solutions are derived from technology, although technology can help and support our goal of creating new products and services or improving processes. In the same spirit, it is wrong to say that innovation and technology are the same things. Many changes occur without the benefit of technology. Just think of how a roundabout regulates traffic in the city, or how Ikea has revolutionized the home furniture industry, or Starbucks has changed the concept of bars and the experience of its customers, or how Just in Time production has disrupted the supply chain.

With the use of technology, we can create many things, but they do not always satisfy a real need or solve a problem. It is only through innovation, however, that we can create something relevant. Technology answers the question “what”, while innovation answers the question “why”. All creative processes that generate new ideas start from the analysis of the problem and the needs of the customer. If we don’t ask ourselves the why of things, we risk creating something that is technologically potentially fascinating, but that doesn’t solve any real need or problem. A classic example is Google Glass: technically brilliant but have they generated innovation among customers and changed their lives?

Let’s not even confuse innovation with inspiration. Quoting Thomas Edison: “Genius is one per cent inspiration and ninety-nine per cent of perspiration. Inspiration is only 1%; the rest is hard work. We can compare creativity to a muscle: we all have it, but it can be more or less developed, depending on how much we use it. However, to generate innovation, you need curiosity, an open mind and a desire to know, conceive and experiment new solutions. When we stop asking questions and accept the status quo, we stop looking for ways to improve the world.

For our innovative idea to work, we have to balance three main requirements: desirability, viability and feasibility, what we call “Innovation Sweet Spot”. Desirability measures how much the idea meets a need of ours or the customer. It is this phase that we answer the question “Why?”. Other items we ask ourselves are: does this solution satisfy a need? Do I, or my customers, have a problem that can be solved with this product? If the answers are no, we will develop an app that no one will use. The needs don’t need to be already evident; you can satisfy latent needs that the consumer has not yet realized he has. An example? The iPod, which has changed the way we listen to music.

When measuring the road network, the questions to ask are: does this solution align with the company’s objective? Is it convenient for customers? Will it have a competitive price with the main competitors or the closest alternatives on the market? A classic example is Dyson, who developed one of the first electric cars, using the best materials on the market and the best technology, creating a fantastic design and reaching about 1000 km of range. After employing around 600 people on the project and having already spent around $500 million, Dyson realized that the production cost of a single car would be just under $200 000. Definitely out of the market considering the mid-range segment the car was aimed at.

Finally, feasibility is the ability of the company to realize the innovative idea, given its resources, capabilities and processes. This is where technology comes into play. Are we able to use or conceive new technological solutions to accelerate time to market? Do we have sufficient internal capabilities to guarantee production?

All three requirements must be met to ensure that our innovative solution reaches the market and is accepted. Some successful examples: Uber, which has changed the way we move around the city. Netflix, which rented cassettes and DVDs and turned into an app for watching movies and streaming series. Amazon, which revolutionized the retail world by creating a new marketplace.

Therefore, an innovative solution, to function and last over time, must, first of all, respond to the needs of the market, must then be consistent with our brand and customer values, and finally must be within our capabilities. Using the latest trendsetting technology on the market is undoubtedly tempting, but it does not necessarily solve our problems if they have not been analyzed carefully before.

by Elena Molinaro

 Strategy and Innovation Consultant