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Barry Nalebuff & Ian Ayres

Why not

Innovation doesn’t require advanced technology. Practical solutions to everyday problems, American ingenuity-style, are often simple refinements of daily life. As Einstein said, "The whole of science is nothing more than a refinement of everyday thinking." Good ideas are all around if we take time to notice. The myth is innovation requires genius. While Edison and Einstein were unique, most innovation happens gradually, built on existing knowledge. Guidance helps creativity. We must question assumptions, think critically about deficiencies, imagine improvements. The spark comes when we connect a solution to a problem. With an open and curious mindset, we can find innovations in the familiar by refining everyday thinking.

Why not
Why not

book.chapter New thinking approaches

Most new ideas are not completely original themselves. Instead, commercial innovations typically combine existing problems and solutions. The key is knowing when and how to apply two fundamental innovative thinking methods. First, identify problems people experience and relate to them personally. Note the inconveniences and irritations others ignore. Rather than accept the status quo, decide to address the problem, beginning an iterative cycle. Once a problem emerges, observe current self-directed solutions. Though imperfect, these establish a practical foundation for refinement. Enhancing what people already do enabled numerous successful products and services. Still, this approach has limits. Consumers with scarce resources tolerate minor hindrances. Enhancements risk diverting attention from unfamiliar but superior solutions. Two techniques overcome these obstacles: Consider an ideal solution for a customer without budget constraints. Though impractical due to cost, this thinking encourages bold ideas possibly amenable to cheaper alternatives. For instance, Howard Hughes bought a TV station to view films on demand, while consumers now achieve similar utility more affordably with VCRs and DVD players. Identify systemic inefficiencies and share benefits equitably. For example, Blockbuster’s revenue sharing deals with film companies addressed limited new release availability. Sometimes subtle problems warrant reversing direction to apply existing solutions. Two methods facilitate this: Take a solution effective in one domain and apply it to overlooked but analogous problems. A grocery store might introduce expedited checkout for frequent shoppers like airlines offer travelers. Hollywood could enable parental control DVD edits like airlines’ family-friendly in-flight movies. Deliberately flip a product or service to serve niche countertrends. Though flawed, alternatives reveal complementary problems with ready solutions. Priceline’s name-your-own-price model flips sellers posting prices. Innovation commonly seeks great new ideas. However, many commercial advances exploit existing overlooked efficiencies. Mastering these four techniques fosters an innovation mindset to solve real-world problems. Some argue systematic experimentation drives scientific progress incrementally. However, these methods quickly apply known solutions not yet implemented. We do not claim exclusive innovation techniques solving all problems. Genius requires inspiration and perspiration as Edison noted. Still, these tools cultivate the great undiscovered ideas waiting to happen through attitude adjustment rather than expertise. Asking why a promising idea does not yet exist often hinders progress. Many ideas do not become businesses despite merits. The possibilities remain unexhausted, awaiting implementation by existing entities or intrepid entrepreneurs unconstrained by precedent of failure. Beyond technology, everyday refinements catalyze history’s great inventions. Complacency stifles progress. We must make it acceptable to suggest improvements and challenge suboptimal status quos. The world should be one large suggestion box. Solutions and problems exhibit symmetry. Who Wants to Be a Millionaire solves problems given solutions. Jeopardy supplies solutions seeking problems. Some problems are obvious, while others hide in plain sight. Applying known solutions to surface unaware deficiencies constitutes ignorance management. Identifying grievances helps pinpoint opportunities. Innovators sense and relate to other’s troubles rather than acclimate. Refusing to accept irritants as inevitable is crucial. Solutions emerge by envisioning how the well-resourced would address problems if money were no concern. Though impractical, this thinking sparks more grounded ideas. Made-up brainteasers fail to satisfy like real issues holding personal consequence. Solving life’s practical problems proves more fun, challenging and rewarding. Why not envision improving the DMV, health insurance, or cable company? A lifestyle constantly seeking better ways pays dividends for individuals and organizations alike by revealing one as an ideas person. There is great satisfaction in ideas that work.

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