Ultimately, there are only two reasons why product development fails.

 

While explaining the contents of my book "How to Create Concepts" to everyone, I realized something. It's that "ultimately, there are only two reasons why business or product development fails." Today, I'll focus solely on discussing that point.

The first reason is that "while trying to think correctly, people fail to discover new connections linking people with things or events."

"Let's launch a new cosmetics business targeting young people."

"Develop renovation products for seniors whose children have left home."

When given a theme for a business or product development, there is only one thing to consider: "What is the new connection linking 'people' and 'things/experiences'?"

For example, coffee stands have long thrived on the connection between "people seeking a quick mood change" and "inexpensive coffee." Starbucks discovered a new connection: "people lacking a place in the city" and the "third place" (a place to relax).

Developing businesses or products is nothing less than building new relationships with people.

And the reason new connections are often hard to find lies in our "thinking methods." When it comes to business, people suddenly tend to try to think seriously, correctly, and logically—but that's where the pitfall lies. For example, marketing textbooks introduce two approaches: "product-out" and "market-in." However, development driven solely by a company's intentions or technology, without considering the market, is bound to fail.

Similarly, thinking strictly and linearly based solely on market needs, without considering your company's strengths and weaknesses, will also prove difficult. What's needed is a way of thinking that repeatedly moves back and forth between "people" and "things/matters," exploring genuine feelings until you discover that "aha!" moment.

Advertising agencies traditionally have training called creative tests. Examples include questions like "How can we get people to use fountain pens more?" or "Come up with ideas to increase public bathhouse users." When I was a new employee, I didn't understand the purpose of these tests. But actually, tackling these "problems with no single right answer" helps you develop the skill to think authentically by moving back and forth between "people" and "things/ideas."

For instance, fountain pens might currently have a market built around the association of "successful middle-aged men" and "tools to project an air of importance." You shift perspectives repeatedly: "What if elementary school kids used them?" "What if we emphasized the function that you can't write properly unless you use it correctly?" "Who are the people who want to write beautifully?" This back-and-forth movement between "people" and "things/concepts" is the key.

However, without mastering this methodology, you'll inevitably fall into the trap of relying solely on "new technology" or "research findings" acquired through budget-heavy efforts, thinking you're thinking correctly. This is the first reason why product development often fails.

Another cause is the poor quality of the "assignments" given to the development team. In other words, "the direction indicated by the vision is ambiguous, so the development team cannot determine what they should and should not do."

Every company should possess fundamental values and a sense of purpose (i.e., a vision) that transcend mere profit-making.

Top management has a responsibility to show employees, "Let's contribute to society with these values." However (based on my gut feeling), for example, about 80% of food companies nationwide set something like "Delicious and Healthy" as their "corporate vision." While that's not necessarily wrong, if everyone from mega-corporations to tiny startups all fight in the same direction, the larger players are bound to win.

How many executives abandon their responsibility to set a vision, only to complain absurdly, "Even when I tell them they can do whatever they want, our development team just can't create anything..."

I believe the root causes of unsuccessful business and product development boil down to two issues: the "question" problem (the communication axis in the Cross Frame) stemming from an ambiguous vision, and the "solving method" problem (the management axis) where people only know the correct methodology. What do you think?

Phew.

Talking seriously like this isn't like me, and it made me thirsty. On nights like this, let's toast with beer and jiggly pork trotters!

Here you go, enjoy!