Seth Godin makes an interesting observation in his post today titled “Avoiding the Passion Pop Gulf.” The basic idea being that there are mainstream markets (the Pop arena) and niche markets (the Passion arena). Companies can succeed by targeting the sweet spot of either of these domains. Where they encounter problems is when they find themselves caught in that uncomfortable gray space between the two. In this region, the product lacks the critical mass of attributes to gain traction with either audience.
This concept has a lot of implication as we consider the tension between incremental and radical innovation.
Incremental innovation is targeted at our existing customers. While necessary, it is often viewed as safe and consequently boring. Yet, a company can do extremely well if they are really good at responding to the needs of these “pop” clients for whose market requirements drive the incremental innovation agenda.
Radical innovation usually first targets the leading edge niche clients that will define the future mainstream market. At this early stage, they are akin to the Passion arena that Seth identifies. They have special requirements that if met can create significant value. When the products for these markets can be made attractive to the mainstream customer, the value potential is even greater.
It is often here that companies get trapped. The allure of the value of the leading edge market draws companies toward radical innovation, but the comfort and value potential of the mainstream market pull companies away from the requirements of the leading edge companies. This can result in a watered down innovation—one that is too different for the mainstream client to adopt and yet is not distinct enough to get a solid following among the leading edge clientele.
The prescription to avoid this no man’s land… Be clear on the objectives of each innovation effort. Whether it is intended to be an incremental or radical innovation, keep true to the intent. Don’t try and mix the two. It is very difficult to take a radical innovation successfully to a mainstream audience until you have first successfully delivered it to your targeted early adopters.
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