Innovation Starts with a Problem

An excellent example is the Tylenol tragedy in Chicago several years ago, when several people suddenly died after consuming Tylenol for pain relief. Someone had deliberately injected a lethal poison into Tylenol capsules in some stores. Johnson & Johnson, the manufacturer, quickly removed all Tylenol products from store shelves, reassured the public, confined the danger to the local area, and discovered the root of the problem. 

The company proceeded to turn this into an opportunity to pioneer new innovative tamper-proof packaging that the rest of the industry has since adopted. The company demonstrated it was not only expert about the products it manufactures but also highly skilled in creative problem solving. The public was left with a very favorable image of Johnson & Johnson. 

Research has identified three characteristics of all effective organizations. One is called flexibility: The ability to react quickly to unexpected events, including crises, and turn them into innovative opportunities. The second is called efficiency: They are dedicated to the continual improvement of their processes, products, and procedures to develop higher quality, quantity, and lower cost. The third characteristic is adaptability: A kind of innovation that proactively seeks and capitalizes on change, anticipating new problems and possibilities, and uncovering problems that their customers have or don’t even know they have.

MinSight: Problems are the starting point for innovation. Ordinary companies are content to wait for a great idea, a bolt from the blue, or copying others. However, great companies establish the habit of searching for valuable problems as a beginning to the innovation process.