Note: This week I’m pleased to have a guest co-author, Mr. Jay Flaherty from the Quad Cities.
Feel their pain. It can be the mother of invention.
Build a better mouse trap and the world will beat a path to your door. A tired-out, hackneyed cliché or a timeless truth? Just when you think every service or product has been invented along comes a better idea or innovation. Take for example Steve Jobs with the iPhone, or Mark Zuckerberg‘s creation of Facebook, and Larry Page’s and Sergey Brin’s Google. Even though these are extraordinary examples, each of us in business and our personal lives can solve a problem in a new way, fill an unmet need, or bring a new concept into our organizations and to our customers.
A few weeks ago the Chicago Tribune sponsored an innovation workshop that I was able to attend on the UIC campus in Chicago. The eminent panel included Linda Darragh, Director of Entrepreneurship programs at the University of Chicago’s Booth School of Business; J.B. Pritzker, co-founder of The Pritzker Group; Amy Francetic, Executive Director of the Clean Energy Trust; and Tom Kuczmarski, co-founder of the Chicago Innovation Awards. They shared their insights about innovation, entrepreneurship, and new ventures. The panel was very optimistic about the future of innovation in Illinois and in Chicago in particular. Most of us have heard that new opportunity is commonly based on problems or unmet needs. But no one we have ever heard puts it better than J.B. Pritzker, the noted Chicago venture capitalist and philanthropist. Mr. Pritzker said it all comes down to “solving someone’s pain. And the deeper the pain the more opportunity.” Wow—that is a unique way of putting it! In this context, the “pain” J.B. refers to is very broad—unmet needs, poor customer service, needing something that doesn’t exist yet. You might recall that President Clinton convinced millions of voters that not only did he feel their pain, but he could do something about it! For Mr. Pritzker, as a venture capitalist, his words are more than mere musings. He is talking about real money, real risks, many losses, and hopefully a few big hits.
While most of us will not create the next Facebook or seek venture capital funding, the idea of finding a solution to a problem, a frustration, an unmet need, or a pain provides immense opportunities. Let’s illustrate this with a two real world examples from our personal experiences. I’ll turn it over to Jay at this point.
After working in the Marketing Department for IBM in Milwaukee for a number of years, I decided I wanted to return to the Quad Cities where I had grown up. Having been involved in technology for a number of years, when the opportunity to open up an Entre Computer franchise in Davenport, Iowa came up I pledged my reputation and fortune to it. While the Quad Cities is home to many major companies including Alcoa, Deere & Company, the Rock Island Arsenal and others, it was not easy to sell to large companies since they in general had direct sales agreements with large suppliers.
We were doing well with the retail customers and had put together a major training agreement with the Eastern Iowa Community College District (EICCD). That is where I first met Don. He was an Assistant Director of Community Education at the time. We solved each other’s mutual problem and were able to build a better mouse trap. EICCD had lots of potential clients, skilled instructors, and a sterling reputation. We had lots of computer resources, a training facility, first rate technical and sales staff, but we lacked enough clients to fill our training facilities. Consequently, as partners we provided the training facility, the computers, and software, and EICCD provided marketing, instructors, and curriculum. It was so successful that EICCD was hailed by the American Association of Community and Junior Colleges (AACJC) in the mid-1980s as the number one community college business/industry computer training program in the United States!
Training was important, but our survival and growth also depended on selling to the major companies. I faithfully made ongoing sales calls to Deere and Company and other large area employers. With Deere we had very little success since they were able to purchase directly from IBM, Apple, Digital, and others. But all that changed one day when I was visiting the office of a middle manager at Deere. Even though we had not done much business the very fact that we were persistent meant that I was there to feel this manager’s “pain.” And did he ever have a problem! It seems that he had ordered 15 computer monitors directly from one of those well- known large computer companies. Unfortunately he had ordered the wrong ones! He was so frustrated because he had spent hour after hour and phone call after phone call trying to get the company to exchange them. He was having little success. Chances are this mistake on his part would be an embarrassment to him internally if he could not find a solution. This was not in any way our problem or pain. However, I told him even though I had not sold him the monitors that I would buy them back and deliver the proper ones to him within a day. This was possible because we also handled the particular brand. This was not a short-term profitable move for us. But this distressed manager simply could not believe we were willing to do this.
Based on that one experience, word spread and Deere became a major client not only for computers but also for services when we migrated into that arena a few years later. We not only felt his pain but took it away, and that became the basis for a twenty year relationship with this Fortune 50 company
Regardless of the terminology, when you see the frustration or pain of an employee, customer, or even your boss, do more than just advise them to take two aspirin. Human pain relievers that solve real problems will always be in high demand. This pain can provide innovation opportunities galore.
Dr. Don Daake, is Professor of Business at Olivet and Director of the Donald H. Weber Leadership. He teaches management, marketing, entrepreneurship and advanced applied statistics. ddaake@olivet.edu
Mr. Jay Flaherty, is a long term entrepreneur based in the Quad Cities. He worked for many years in IBM’s Marketing Department in Milwaukee, owned a successful Entre Computer Franchise in Davenport, and has started and been involved in numerous other startup ventures.