Wednesday, August 17, 2005

InnoVenture's top-of-mind-position: Growth and Wealth Creation

Geoffrey A. Moore in Crossing the Chasm states that in marketing "there is one fundamental key to success: create a space inside the customer's head called 'best buy for this type of situation' and to attain sole, undisputed occupancy of that space."

Clayton Christensen in The Innovator's Solution observes, "companies that target their products at the circumstances in which customers find themselves, rather than the customers themselves, are those that can launch predictably successful products. Put another way, the crucial unit of analysis is the circumstance and not the customer." He goes on, "A jobs-to-be-done lens can help innovators come to market with an initial product that is much closer to what customers will discover that they value. The way to get as close as possible to this target is to develop hypotheses by carefully observing what people seem to be trying to achieve for themselves," but are finding difficult, expensive, or inconvenient to do.

Hmmmm. So apply that to InnoVenture. Our target market is "innovators and entrepreneurs." What are they trying to achieve for themselves, that they are finding difficult, expensive or inconvenient to do.

Some innovators inside big organizations are trying to commercialize discontinuous innovations. Why would Michelin put any focus on the Tweel, when it is easier in the short term to sell more radial tires?

Entrepreneurs leading high-impact companies are also trying to gain traction commercializing discontinuous innovations. Certainly it would be much easier to have a real job with a stable salary and benefits. Why do entrepreneurs do it?

Innovators and entrepreneurs are driven to create growth and wealth. Michelin can make money on radial tires today, but the company can not meet its growth objectives with mature products. Entrepreneurs can't get rich working for someone else.

Innovators and entrepreneurs find their quest for growth and wealth creation really, really hard, so they begin to look for relationships, expertise, and resources that can help them. That is a job they that they will look to InnoVenture to do for them.

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