Developing an Innovative Solution to a Problem

In today's marketplace, the practice of innovation isn't just about creating new products. It's about discovering completely new markets that meet previously unknown and therefore untapped customer needs. And in the age of Internet commerce, the act of innovation becomes an even greater challenge, awash in a sea of new ideas. Therefore the drive toward selecting and executing the right ideas and bringing them to market before your competitors takes on an urgency that has been previously unknown, yet is sure to increase in the rapidity of its scale in the years ahead.

As a result, the driving forces behind innovation - previously technology and control of quality and cost - have shifted away from issues of efficiency and are now solely focused on the creativity and growth of the organization toward a future state of competitiveness.

A perfect example can be seen in the process of mobile payment via smartphone. Mobile payment has provided the ultimate in convenience to shoppers by preventing them from having to carry around credit cards and other means of payment. Though it has yet to become the norm for many businesses, mobile payment's proliferation among startups is evidence of the desire to reach consumers through expediency and ease of use.

Regardless of the size and scope of your organization, customer-centered companies looking to innovate for the modern consumer might consider the following approach:

Make sure you're trying to solve the right problem and don't try to provide a fix for something that isn't a priority in the eyes of your consumer. Do this by asking the right questions and observing, either in focus groups or by evaluating competitive companies, products and their customers. Asking simple questions like 'what does XYZ company do better than us?' or 'what's missing from our product or service that would make it better?' can go a long way towards defining your direction at this stage.

After you've evaluated all the options and values gleaned from steps one through four, you have to choose the most customer-centric solution to move forward with, developing a base of support within your organization and preparing for any internal or external contingencies.