Discovery Skill 3: Observing
Discovery-driven executives produce uncommon business ideas by scrutinizing common phenomena, particularly the behavior of potential customers. In observing others, they act like anthropologists and social scientists.
Intuit founder Scott Cook hit on the idea for Quicken financial software after two key observations. First he watched his wife’s frustration as she struggled to keep track of their finances. “Often the surprises that lead to new business ideas come from watching other people work and live their normal lives,” Cook explained. “You see something and ask, ‘Why do they do that? That doesn’t make sense.’” Then a buddy got him a sneak peek at the Apple Lisa before it launched. Immediately after leaving Apple headquarters, Cook drove to the nearest restaurant to write down everything he had noticed about the Lisa. His observations prompted insights such as building the graphical user interface to look just like its real-world counterpart (a checkbook, for example), making it easy for people to use it. So Cook set about solving his wife’s problem and grabbed 50% of the market for financial software in the first year.
Innovators carefully, intentionally, and consistently look out for small behavioral details—in the activities of customers, suppliers, and other companies—in order to gain insights about new ways of doing things. Ratan Tata got the inspiration that led to the world’s cheapest car by observing the plight of a family of four packed onto a single motorized scooter. After years of product development, Tata Group launched in 2009 the $2,500 Nano using a modular production method that may disrupt the entire automobile distribution system in India. Observers try all sorts of techniques to see the world in a different light. Akio Toyoda regularly practices Toyota’s philosophy of genchi genbutsu—“going to the spot and seeing for yourself.” Frequent direct observation is baked into the Toyota culture.