Innovation isn’t something that happens in a vacuum, right?
Sometimes the best ideas come from looking at the world around you. Whether it’s seeing how people are living their lives, spotting new tech, or checking out what your competitors are up to, there’s a whole universe of inspiration out there, just waiting to be explored.
We’ve already talked about how to find fresh ideas within your own company, so now let’s look beyond those walls. In this article, we’re exploring the most powerful external innovation sources that can help your business think outside the box, grow faster, and stay ahead of the game.
External sources of ideas are all about finding those brilliant thoughts outside your company walls. It’s looking at the wider world – trends, technologies, even what your competitors are up to – and using those insights to spark your very own creativity.
Ready to see what’s possible from within? Let’s jump in!
Learn more: Scaling Innovation Processes Through Internal and External Stakeholder Communication
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Customers
First, let’s talk about your existing customers.
They’re much more than just people who buy what you sell. In fact, they’re a powerhouse of valuable and relevant insights! Think about it: who knows better about what they want and need than the people who are actually using your products or services in the real world?
Paying attention to feedback, surveys, and online communities can reveal those hidden pain points you might not even know existed. This way, you’ll have a direct line to the people who matter most, telling you exactly what they love, what they hate, and what they wish you offered.
Companies like LEGO have mastered this external innovation strategy. They actively seek out customer ideas through their LEGO Ideas platform, turning fan creations into actual products. And those super-fast Amazon deliveries? That came from understanding customer frustration with slow shipping times.
Also, keep something very important in mind: it’s not just about asking customers what they want. Sometimes, it’s about observing what they do and figuring out their underlying goals.
That’s how Netflix started recommending shows based on your viewing history. It wasn’t just an algorithm; it was a direct response to customer frustration with endless browsing (we’ve all been there).
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Competitors
Okay, let’s switch gears and talk about your competitors. Now, before you roll your eyes and say, “Ugh, not them again,” hear us out. Keeping an eye on your rivals isn’t about copying their every move; rather, it’s about gathering valuable intel that can fuel your own innovation.
So think of this like a friendly game of chess. You need to understand their strategies, anticipate their next move, and figure out where they might be leaving gaps in the market.
Alas, competitor analysis isn’t just about seeing what products they’re launching – it’s about digging deeper:
- What are their customers saying? Are there unmet needs you could address?
- What technologies are they investing in? Could those open up new possibilities for your business?
- Where are they falling short? That’s your chance to swoop in and offer something better!
Remember, though, use their moves as inspiration to create something unique, something that sets you apart. For this example, consider companies like Apple and Samsung.
As competitors, they’re constantly pushing each other to innovate, but they also maintain distinct brand identities and product offerings. – That’s the sweet spot for tapping into external innovation sources, all while maintaining your uniqueness.
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Suppliers
You might think of your company suppliers as those who simply provide the essentials you need to run your business. But what if they could be so much more?
Your suppliers are not just your vendors – they’re highly-valuable external innovation sources. In fact, they have a front-row seat to the latest technologies, materials, and processes in their own industries. They know how their customers operate, the potential challenges they face, and where to innovate.
Your suppliers might stumble upon a cutting-edge material that could revolutionize your product – or discover a more efficient manufacturing technique that could save you money.
Let’s take the food and beverage industry as an example. Have you ever noticed those new, plant-based meat alternatives popping up on supermarket shelves? Many of those innovations weren’t dreamt up solely by the food companies themselves. They often partnered with their ingredient suppliers to develop and perfect those plant-based proteins that mimic the taste and texture of meat.
These suppliers, with their deep knowledge of food science and ingredient sourcing, brought their expertise to the table (pun intended!). They helped these food companies navigate the challenges of creating delicious and sustainable alternatives, opening up a whole new market segment.
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Software and Consulting Companies
Let’s face it, keeping up with the rapid pace of innovation can feel like trying to catch a bullet train. Software and consulting companies offer a whole toolkit to supercharge your innovation efforts. From trendspotting and market analysis to strategic planning and execution, they’ve got your back.
Software solutions like innosabi, in particular, can be a turning point for any given company. They can help you gather and analyze mountains of data, turning raw information into actionable gold.
Plus, software gives you the tools, consulting provides the roadmap – and together, they create the perfect environment for sustainable innovation.
But here’s the kicker: the earlier you team up with these external innovation experts, the better. They can help you build that technological leadership from the ground up, so you’re not just keeping up with the competition, you’re setting the pace.
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Research Institutions and Universities
These are external innovation drivers powerhouses, where brilliant minds are constantly pushing the boundaries of knowledge and technology.
Collaborating with these institutions gives you access to groundbreaking research, emerging technologies (not to mention a pool of talented individuals ready to tackle real-world challenges).
These strategic partnerships create a symbiotic relationship where both sides benefit. Companies gain access to fresh perspectives and innovative solutions, while universities get to see their research translated into real-world impact.
Take Google’s self-driving car project, Waymo. It wouldn’t be where it is today without close collaboration with universities like Carnegie Mellon and Stanford. These partnerships provided access to top-tier robotics researchers and cutting-edge AI algorithms, accelerating the development of autonomous vehicle technology.
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Crowdsourcing
Ever wished you could tap into a global network of brilliant minds to brainstorm your next big idea? Well, with crowdsourcing, you kinda can!
Think of crowdsourcing like a giant online suggestion box, except it’s filled with bright external ideas for innovation, fresh perspectives, and potential solutions you might never have thought of on your own. Suddenly, you’re not just limited to your internal team; you’ve got a whole world of creative problem-solvers right at your fingertips.
And crowdsourcing creates a feeling like we’re all in this together. People love to feel like they’re participating in something bigger, and when you invite them to contribute, you’re tapping into that powerful sense of engagement.
Look at how Lay’s, the potato chip giant, launched its “Do Us a Flavor” campaign. They invited customers to submit their wildest chip flavor ideas, with the winning concept becoming a limited-edition product.
As a result, this not only generated both a ton of buzz and engagement, but it also led to some truly innovative flavors like Wasabi Ginger and Kettle Cooked Bacon Mac & Cheese.
Learn more: Scaling Innovation Processes Through Internal and External Stakeholder Communication
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Social Media and Online Communities:
No, social media isn’t just for cat videos and memes – they’re bustling hubs of trends, and insights. In fact online communities are the world’s biggest virtual watercooler, where people gather to chat, share ideas, and, of course, vent their frustrations.
And this is your business’s hotspot for trendy insights and opportunities. Tune into online conversations and get a real-time pulse on what your customers are thinking, feeling, and talking about. This is your direct access into their brains, revealing even their wildest dreams.
But don’t think about it only as eavesdropping. In fact, this is a two-way street. Through actively engaging with your audience, you can build relationships and even co-create products with your most passionate fans.
Look at how Glossier, the beauty brand, built its entire empire on social media. They actively engage with their community, listening to feedback, incorporating user-generated content, and even co-creating products based on popular requests. This way, their social media presence has become a core driver of their innovation strategy.
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Startups
Startups are the disruptors, the rule-breakers, the ones currently pushing boundaries and challenging the status quo. They’re the window into the future of your industry – a contemporary source of bold experimentation.
Keep a close eye on the startup scene to get a sneak peek at tomorrow’s trends and technologies. But don’t be fooled, just as with social media, observation is just the beginning. In other words, you can also join forces.
Collaborating with startups, whether through partnerships, investments, or even acquisitions, can inject your company with a much-needed dose of entrepreneurial energy and out-of-the-box thinking.
Consider OpenAI’s groundbreaking GPT-3 language model. While not a direct acquisition, Microsoft’s exclusive licensing deal for this technology has supercharged its sources of external innovation efforts across various products.
From enhancing the natural language capabilities of its search engine, Bing, to integrating GPT-3 into its suite of productivity tools, Microsoft is leveraging this partnership to deliver AI-powered solutions that transform how people work and interact with technology
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Government and Regulatory Agencies:
Lastly, let’s not forget about the government and those regulatory agencies. Sure, they might seem like a bit of a buzzkill sometimes, but they actually play a pretty big role in shaping the innovation landscape.
Staying abreast of upcoming regulations and potential funding opportunities can make or break a business. That’s because governments often play an active role in fostering innovation, offering grants, tax breaks, and even partnering with businesses on research and development
Just look at the rise of electric vehicles. Government incentives and emissions regulations have played a huge role in accelerating their adoption, pushing automakers to innovate and develop cleaner, greener technologies. It’s a win-win for businesses…and the planet!
Wrapping it Up
In conclusion, the world is brimming with external innovation sources waiting to be tapped into. From customers and competitors to suppliers and startups, each offers unique insights and opportunities to fuel business growth and stay ahead of the curve.
Through active engagement with these external sources, companies can unlock a wealth of creative ideas, accelerate their innovation efforts, and achieve sustainable success.
FAQs
What are external innovation sources?
External factors of innovation are ideas and opportunities for innovation that come from outside a company, such as customers, competitors, and research institutions.
Why are customers considered an external innovation source?
Customers provide valuable insights through feedback, surveys, and online communities, revealing unmet needs and potential improvements for products or services.
How can suppliers contribute to innovation?
Suppliers often have access to new technologies and processes that can enhance product development and manufacturing efficiency.
Why is competitor analysis important for innovation?
Analyzing competitors helps identify market gaps, emerging trends, and technologies that can inspire unique innovations for your business.
What role do research institutions play in external innovation?
Research institutions provide access to cutting-edge research and technologies, enabling companies to collaborate on groundbreaking innovations.
How can social media fuel innovation?
Social media provides real-time insights into customer desires, frustrations, and trends, making it a valuable source for idea generation and product development.
Like what you read? Don’t miss these other valuable resources to inspire your next big innovation.
Innovation Examples in the Workplace: 17 Strategies to Spark Creativity and Growth
Mastering Innovation Challenges: A Roadmap for Success
How to Improve Innovative Thinking so That You Can Unlock Creativity in Your Workplace