Intro
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Turning innovation or research into a profitable business model might not be the first goal. The first goal might be solving the problem. Moving away from Milton Friedman’s idea about companies’ sole purpose being money, to E. Freeman’s theory to focus on the stakeholder, because the stakeholder has a need and an expectation from your brand.
One of my favorite ad campaigns ran before Black Friday. Patagonia released a slogan, “You don’t need this jacket.” They think about the planet, the environment, and start to solve a problem that exists in the consumers’ world, but not necessarily in the product world. Releasing a statement to tell consumers to not buy their product resulted in the bottom line of profit. What it allowed them to do is focus on the things they needed instead of material items or to be different.
This goes back to the better piece. You’re going to experiment and innovate your product. Not everything will work. That’s part of accepting good instead of accepting defeat from trying to achieve perfection.
In the past, we used business models called the fashion life cycle. It was profitable and maintainable because businesses found the decline and the obsolescence and repeated the process. That isn’t feasible in today’s industry.
Today, we need to understand the consumer’s problem, solve the problem with both a strategic and business plan. To build a new business or even think of new ideas is about asking the right questions and gathering the right information, to connect to the right people and services. People don’t have to mean actual humans; it can be AI. It could be a part of our future we need to learn to adapt to.
We speak of technology that will help us to understand how to build new ideas to establish new businesses. You know, back in the day, we would say, I got a million-dollar idea or a billion-dollar idea, today, we have to say, I have a great idea and I’ve sourced it out, and I’ve done my homework. I know there is a consumer audience out there that this idea, this brand, this technology, this service, this product, whatever it might be, will work.
