Innovating from the outside in

Many businesses tend to create products based on what they can do and then try to convince consumers that they need it. However, the more effective approach is to start with what the customers want and need, and then build your capabilities and products to fulfill their desires. This involves creating strong listening programs, understanding the future and market opportunities, and assimilating information to create a new product or service reality. Benefits include satisfying the entirety of needs, creating greater sales and profit, and greater market dominance. To achieve these benefits, innovation teams need to start thinking from the outside in.