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Three keys to groundbreaking growth: a demand innovation strategy, nurturing practices, and a chief growth officer

Adrian Slywotzky (Adrian Slywotzky and Richard Wise are Boston‐based senior partners of Mercer Management Consulting (adrian.slywotzky@mercermc.com and richard.wise@mercermc.com). A comprehensive explanation of demand innovation, their novel growth strategy, is provided in their new book, How to Grow When Markets Don’t (Warner Business Books, 2003).)
Richard Wise (Adrian Slywotzky and Richard Wise are Boston‐based senior partners of Mercer Management Consulting (adrian.slywotzky@mercermc.com and richard.wise@mercermc.com). A comprehensive explanation of demand innovation, their novel growth strategy, is provided in their new book, How to Grow When Markets Don’t (Warner Business Books, 2003).)

Strategy & Leadership

ISSN: 1087-8572

Article publication date: 1 October 2003

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Abstract

In the years to come, traditional product‐centered strategies alone won’t create the kind of growth companies desire. An alternative platform for driving significant, sustained new growth is demand innovation (as opposed to product innovation). Demand innovation focuses on using one’s product position as a starting point from which to do new things for customers that solve their biggest problems and improve their overall performance. Embedded in the customer’s use of your product are all kinds of hassles and inefficiencies as they buy it, use it, store it, maintain it, finance it, and eventually dispose of it. This broader web of activity represents tremendous economic activity, often 10 to 20 times greater in total value than the product market itself. Understanding and participating in this customer “value chain” is the key to demand innovation. Making demand innovation profitable means improving both your customers’ economics and capturing value for your company. Here success is rooted in putting to use a set of powerful hidden assets that your company may already have. Five types of hidden assets are described with guidelines for how to master the new discipline of demand innovation. Five principles are offered to guide managers through the challenges that arise for developing new‐growth projects into major opportunities.

Keywords

Citation

Slywotzky, A. and Wise, R. (2003), "Three keys to groundbreaking growth: a demand innovation strategy, nurturing practices, and a chief growth officer", Strategy & Leadership, Vol. 31 No. 5, pp. 12-19. https://doi.org/10.1108/10878570310492014

Publisher

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MCB UP Ltd

Copyright © 2003, MCB UP Limited

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