In my last post I discussed Experienced Based Innovation models. In this post I'll discuss some of the upsides I've seen with experienced based innovation.

As I mentioned before, in many products there are generally 4 places where innovation intersects with customers:

  • As you are are getting ready to release a product. Typically in the Alpha and Beta stages. This is exceedingly common.
  • In the middle of the product development phase, such as trying out prototypes under NDA.
  • Building a product jointly and/or for the customer, usually under a contract.
  • Working during ideation and strategy phases of the product.

For me, the top 3 upsides of Experience Based Innovation include:

  1. Funding: When new innovation is placed under contract, access to funding is one of the major upsides of this innovation model. It is very rare to have a large budget with a huge innovation surplus. If you have a strong enough relationship with a customer or partner, you can often work together to assist in funding. This funding can come in numerous forms - something as simple as a Statement-of-Work or more complex investments such as Joint-Ventures or Capital investment.

  1. Better Products: Products built closely with customers and/or partners will often be more market-ready when they reach the 2nd, 3rd and 4th customers. This is especially true with complex products - the increased access to real-world users will advance product agendas in the areas such as usability, quality and serviceability. When you have multiple customers and partners involved, these forces advance product agendas even further and help reduce the likelihood of creating bespoke features.

  1. References and Case Studies: When you are sitting in front of prospects trying to sell new customers, it is very powerful to speak about the work you have done or are doing with a partner. Working jointly with customers on new products, if successful, can create powerful references - invaluable to sales teams. Joint ventures (and to a lesser extent partnerships) can often give unknown companies the benefit of a brand extension. If the work is particularly compelling, it can be used for marketing with activities such as conference keynotes, public case studies and industry awards.