IDEAS- Issue # 3

Monthly newsletter dedicated to organisational innovation, creativity and change.

It Pays to Watch Them

You may not spend too much time in the kitchen. You may not be a great cook. You may not even cook, but would you agree that:

1. When cooking in non-stick pans, people prefer to use plastic (or wooden) spatulas and not metallic ones. That keeps the non-stick coating intact.

But there is a problem they face...

2. Quite often, plastic spatulas melt and change shape due to the heat experienced in the pan.

These two simple observations led Rubbermaid, a 6.7 billion dollar giant in plastic products, to create a new line of product. The company had sent a team to a restaurant to observe how customers (chefs) went about cooking. And the team saw exactly what is mentioned above: Whenever a chef cooked something in a non-stick pan, he picked up a plastic spatula. But, after repeated use, the spatula warped and lost its shape.

Rubbermaid promptly seized the opportunity. The company created a new heat resistant spatula made of pliable synthetic rubber. If you go to Rubbermaid's Web site, you would find this product proudly displayed with a remark that it can withstand temperatures up to 500 F (260 C) without melting. How did it come about? By watching a customer!

Something similar happened with Michael Dell, Chairman of Dell, when he visited British Petroleum in London. He saw BP had allocated a full floor in the office for configuring PCs. He noticed a large group of BP employees taking PCs out of the boxes, installing special features, such as job specific software and network interface cards (NICs), and removing the features that they didn't use. Amazed, he realised BP was spending inordinate amounts of money to reconfigure the machines, not to mention the high-cost real estate space that they were using to do so.

Seeing the expression of shock on Dell's face, BP's IT guy asked Michael Dell if he could custom-configure the PCs for BP. Dell, like Rubbermaid, was quick to seize the opportunity and immediately said, "Yes." He knew what was both expensive and time-consuming for BP, was relatively easy for Dell to execute. And so, Dell started a new value-added product line: custom-configured PCs. How did it come about? By watching a customer!

The fact is innovative companies deliberately fall into a vicious cycle: Of observing customers; getting ideas for new/improved products; then creating new products and selling them to customers; and watching the customers again for more ideas.

>>IDEA: The idea is simple: Regardless of whether you are a products or services company, you can get ideas for innovation simply by observing your customers.

You won't believe that this is such an old, beaten concept that 3M, one of the world's most innovative companies, discovered it when we weren't even born.

In 1925 Dick Drew, 3M's research engineer, visited an auto plant to test the company's then-flagship product: sand papers. As Drew entered the auto shop, he saw a group of workers standing by the side of a newly-painted car and venting frustration over a botched paint job. Instead of going about his intended business, Drew decided to understand a bit more about the paint problem.

In those days, to produce a two-colour car, auto workers had to first paint a part of the car and then mask it with a butcher paper before applying the second colour on the remaining part. The butcher paper was held in place with a heavy adhesive tape.

The problem was simple but unsolved: When the tape was peeled off, it also peeled away some of the paint from the newly-painted car body, creating a need for re-painting.

Drew was quick to realise what now appears to be obvious: the need for a tape with less powerful adhesive--one that would peel off easily without removing the paint with it.

Drew returned to his laboratory with a determination to create a new tape for his customer. After two years of experimentation with different papers and adhesives, Drew came up with a successful new product: masking tape.

Since then, Drew's innovation has been a source of revenues for 3M--for over seven decades! It gave birth to 3M's adhesive tape business, which produces hundreds of specialised products for medical, electrical, home and industrial applications.

You may not need more examples to get convinced that it pays to watch customers, still, let me leave you with one last, small one: Have a look at tooth brushes for kids and adults. You would find tooth brushes for kids have a slightly fatter handle. Do you know why? This product enhancement is a result of someone observing that kids and adults hold tooth brush differently: Kids hold it in their fists whereas adults hold it with fingers.

Who uses your products or services? Regularly spend time with them and observe how they operate. That's where lies a proven source of innovative ideas--and also an opportunity to gain competitive advantage over your competitors.

Says Michael Dell, "I spend 40 percent of my time with customers." Obviously, he knows IT PAYS TO WATCH THEM.

Atul Mathur

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Coming up in the next issue... Setting Goals is the Way to Trigger Innovation

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***Copyright 2005 Atul Mathur***

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