Ignoring the Reflection... Innovation Through a 2-Way Mirror

Jun 19, 2014 | Anthony Mills

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In the grand pursuit of business innovation, one of the commonly used approaches is a deconstruction / reconstruction model.   In this model, we deconstruct some element of our business (for example, the value basis of a product or service offering) and then attempt to reconstruct a new incarnation of it using a mix of alternative pathways.   Sometimes a conceptual model, such as The Innovation Radar for example, is used as a tool to aid in this process.¹   The question is always one of, "what are the new and different ways in which we can deliver more value?"   (Implicit in this question is the assumption that doing this will result in increased sales growth.)

The above exercise is, in fact, a fundamental practice of good innovation.   But... there is one luring temptation here that tends to stump many would-be innovators.   That temptation is to stop at the question "what can we do differently" and move forward from there.   This is, unfortunately, an inside-out way of looking at the problem.   It is myopic.   It is like looking in a mirror and seeing only the reflection of ourselves looking back at us.

What we must realize is that this mirror we are looking at is actually a two-way mirror and that standing directly on the opposite side of this mirror is our would-be markets (and customers).   So, while asking "what can we do differently" and looking at our own reflection has its place and is useful, we cannot stop there.   Instead, we must reach the point where we look through the mirror and beyond its surface... we must ignore our own reflection so that we can see what is on the other side, namely, the market.   When we realize this and begin to examine the matter in this light, we get much more valuable insight.   The question then becomes one not of "what can we do differently", but rather one of "what does the market want or need to be different about the value they receive and/or the experience they have in receiving this value?"   This is the outside-in perspective and it yields much more useful insight than does the inside-out perspective.

In the end, we need both perspectives... looking from the inside out so that we know what is possible, and looking from the outside in so that we know what matters.   Knowing what matters is infinitely more valuable than knowing what is possible, yet both must be understood and must come together in order for an organization to successfully innovate.   It is useful in this work to have an innovation model like the Flight Board Innovation Method™ which explicitly calls for both inside-out and outside-in perspectives.   This way, those innovating are sure to have the combined benefit of both perspectives and can connect the dots in ways that have the maximum chance of commercial success.

¹ Mohanbir Sawhney, Robert C. Wolcott and Inigo Arroniz, "The 12 Different Ways for Companies to Innovate", MIT Sloan Management Review, Spring 2006.

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