Know Thy customer than innovate...

Following is a example that is given by Peter Drucker the famous management guru on innovation 

"In 1920 during the British era there is a one company in Britain which makes and export locks to India, company was the best seller in the market for years. As of now the locks available in the market are not so of good quality, any  person can also open them with a Little push there is no key requirement to open than as par say. Company was doing good, so owner of the firm decided that to redesign the lock make it better and safer. Hence the company did the same  and replace the old locks with the new one. But company starts loosing it sales". 

But hey!! why did this happen why the company start loosing its sales beside they are improving there products?

One of the common thing that can came in any body's mind is that improved product will certainly result in improved cost, yes this is one of the main reason that company lost its businesses. 

I have another idea, let see the problem with different prospective, let see the function of the product we are providing not the product itself and try to match it with the what function that user of product needed.

So what is the function that a user need from a lock in India during that time? 

To provide a mental assurance or say a magical symbol that house is safe and it needs some extra effort to break in the house with lock than a house without a lock. So presence of lock either working or non working itself act as thief repellent 

So what is the function that lock is providing to the user before and after improvement? 

Before improvement primary function of the lock that was available in the market during that time is to provide a cheap and easily operable solution to lock the house so easy that there is no need to carry key, as lock can open manual force also. But after improvement the lock certainly become costlier than the previous scenario also lock also lost it easy operates know it can't be open manually you certainly need a key to open it.

Hence there is a mismatch between function that a customer needed and what a product is provided which ultimately results in loss of sales and market share.....

Another example that is coming in my mind is of major company which makes washing machines and they are trying to improve there sales in the Punjab state of India. 

Innovation came from the side of a sales men which see the function of customer required and function that is product is providing instead of a product itself....

Let see again the function

What is the function that washing machine is providing ?

It is a device that is providing a simple churning solution where in general you put water (liquid resistance) , clothes and detergent and clothes get cleaned by simple churning...

What is the function that customer required? 

Customer (Lassi Maker) in that region required a solution that can make a popular local beverage known as lassi (Buttermilk) in which they need to churn curd, water and sugar. Which is by coincident is the function provided by the Washing machine and bingo they got the immediate sales 

But we can't rely on conincident so what we have to do?

May be observation is the key here say try to observe your own and others behaviour like what function that if provided will make you and other happy and if what function is not provided that makes you crazy like a hell...