Product Growth with Iterative Innovation

I have discussed extensively the kind of innovation that can grow a business and enable it to expand from conception to global adoption. This innovation, which I call Pioneer, has the potential to disrupt an entire industry. Netflix and Spotify are great examples of this. 

Another form of innovation called "Iterate" can help a product to continuously grow by making ongoing improvements. These improvements, also known as Product Enhancements (PEs), require a more iterative approach to innovation. 

Snapchat is a great example of this. If we look at their plans for 2023, we can list out some of the innovative features they plan to launch:

• “After Dark” Story mode

• “Communities” Story mode

• “Live Location” on Snap Map

• A new “Activity Centre”

• Bitmoji with apparel inspired by Marvel characters 

These new enhancements are not groundbreaking individually, but they are designed to ensure the continued growth of the product. This is evident from the figure below. 

Improving your product by making enhancements is similar to creating new products. The first step is to recognize the potential for improvement and identify the target market. It's crucial to understand the issues your customers encounter, which can be achieved by analyzing both quantitative and qualitative data. For instance, analyzing your product analytics can uncover opportunities for improvement. Your users can also express their limitations or problems through social media channels, either directly or indirectly. Furthermore, feedback from your user groups or Customer Advisory Board (CAB) can provide valuable insights for further enhancing your product.

In my opinion, the importance of iterative innovation often goes unnoticed. Nevertheless, it is this kind of innovation that can enable a product to expand and maintain steady growth. In a subsequent piece, I will discuss another form of innovation, known as Transform, which can help your business thrive even after the lifespan of your product.

Continuous product growth with Iterative product innovation