How to Implement 11 Product System Innovation Tactics?

product system innovation tactics

Product system innovation is an expansive strategy that allows businesses to create additional value for customers by designing products and services that work together as a cohesive system. Here’s how to implement 11 product system innovation tactics:

1. Complements

How to implement: Identify additional products or services that enhance the use of your main offering. Identify products or services that complement your main offerings and promote them to existing customers.

Example: A camera company could upsell lenses, tripods, and carrying cases that complement the primary camera purchase. A fabric manufacturer might also sell sewing kits, patterns, or fabric care products alongside their primary textile offerings.

2. Ecosystem Play

How to implement: Develop an open API platform that allows third-party developers to create applications that enhance your core product. Develop a platform where third-party developers can create and integrate applications that enhance your core product.

Example: A smart home device manufacturer could create an ecosystem where third-party providers can offer compatible security, lighting, or heating apps. Create a digital platform for a knitting yarn brand where developers can offer pattern designs, knitting software, or tutorial apps.

3. Extensions or Plug-Ins

How to implement: Create a base product that allows for additional features via extensions or plugins, either developed in-house or by external developers. Design your product to be open to enhancements through add-ons, either created in-house or by external developers.

Example: A web browser offering various plugins for enhanced privacy, easier shopping, or productivity tools. Develop a proprietary design software for fabric patterns that allows third parties to create and sell additional design modules.

4. Integrated Offering

How to implement: Merge multiple products or services to offer a seamless experience. Bundle together various products or services to offer a comprehensive solution.

Example: A smartphone with integrated services like cloud storage, music streaming, and payment systems. Offer a complete fashion design package that includes fabric, patterns, custom labels, and even limited manufacturing services.

5. Long Tail

How to implement: Offer a wide range of niche digital products, appealing to varied and specific interests. Offer a wide variety of niche products, typically online, to cater to diverse customer interests.

Example: An online music store selling tracks from mainstream, indie, and obscure artists alike. A textile e-commerce store could offer a vast selection of specialized fabrics, from organic cotton to rare silks, catering to niche markets.

6. Modular Systems

How to implement: Design products with interchangeable components that can be combined in various ways. Design products that can be used separately but also work together as part of a larger system.

Example: A line of modular office furniture that can be adapted as companies grow and their office space needs change. Create a line of modular upholstery fabrics that can be mixed and matched, allowing customers to customize the look of their furniture.

7. Product Bundling

How to implement: Group complementary products and sell them as a package at a discounted rate. Combine multiple products and sell them as a package deal.

Example: A gaming console bundled with popular games and extra controllers for a complete gaming setup. Bundle a high-end sewing machine with premium threads and fabrics as a starter kit for advanced hobbyists.

8. Productize Services

How to implement: Package services in a way that standardizes and simplifies the buying process. Create a standardized set of service offerings that can be sold like products with clear pricing and features.

Example: A digital marketing agency offering tiered service packages with clearly defined deliverables. Offer fabric maintenance or restoration services with set tiers, such as basic cleaning, stain treatment, and repair packages.

9. Product Line

How to implement: Develop a range of products that cater to different levels of customer needs and budgets. Develop a range of products that cater to different levels of customer needs or budgets.

Example: A car manufacturer offering various models that range from basic to luxury, allowing customers to choose according to their requirements and financial means. Introduce an entry-level, mid-range, and luxury line of bed linens, enabling customers to choose based on their preference and affordability.

10. Product/Service Platforms

How to implement: Build a base platform that connects and enhances the utility of other products or services. Create a foundation that allows other products or services to connect and interact, enhancing the overall value.

Example: An app store that serves as a platform for a wide range of mobile apps, from fitness tracking to language learning. Build an online textile marketplace that connects fabric producers, designers, and buyers, facilitating transactions and collaborations.

11. Product Smartification

How to implement: Add smart technology features to traditional products to increase their functionality. Incorporate technology into your product to increase its intelligence and connectivity.

Example: A refrigerator that monitors food inventory and suggests recipes based on what’s inside. Embed RFID chips into clothing labels that allow users to track the origin of the garment and receive information on sustainable use and recycling options.

Implementing Product System Innovation Tactics

  1. Customer Journey Mapping: Understand how customers use your product and where they might benefit from additional features or services.
  2. Market Research: Conduct research to identify potential gaps in the market that your product system could fill.
  3. Collaboration with Partners: Work with partners to develop complementary products or services.
  4. Prototyping: Develop prototypes for each component of the product system and test how they work together.
  5. Integration Testing: Ensure all parts of the product system integrate seamlessly and enhance the overall user experience.
  6. Feedback Loops: Use customer feedback to refine the product system continuously.
  7. Scalability Planning: Design the system to be scalable so that new components can be easily added.

By strategically integrating these tactics into your business model, you can develop a robust product system