Most new products are combinations of existing information. Technologies, application principles, products or even complete business models can be combined. Basically, a new idea is more of a discovery than an invention.
This is precisely the principle on which Cross Industry Innovation is based. It is a very common approach, so I would like to take a closer look at it in this article.
When does Cross Industry Innovation help me?
First of all, this approach is certainly a kind of buzzword and there is little concrete meaning to it. So let’s start from the beginning. First of all, it is important to know that this type of innovation is at least a radical innovation, because a combination with something completely different usually produces something completely new and unprecedented. Conversely, this means that if I only want to make small incremental improvements to my service or product (i.e. incremental innovation), then the cross-industry approach is out of the question.
In addition to the willingness to really want to create new things, cross-industry innovation also requires a strategic willingness to engage with other sectors. Industries that you may not have had any contact with before. You have to be fundamentally prepared to be deeply inspired by them, even if this means that you have to turn your own product completely upside down. Furthermore, one must be aware that a successful cross-industry approach usually means cooperation with other companies. After all, processes and mechanisms that have been successfully placed on the market cannot simply be copied.
Examples of successful cross-industry innovations
Many big names have already produced successful innovations using the cross-industry approach. I have listed a few examples here:
- Automotive and gaming industry: BMW’s iDrive is based on the idea of the joystick from the computer industry
- Beverages and medicine: the Coca Cola Freestyle beverage dispenser uses medical technology dosing technology
- Coffee and laboratory industry: the Aeroccino milk frother from Nespresso uses the magnetic drive principle of laboratory mixers
- Shoes and racing: the Nike Shox cushioning is technologically derived from Formula 1 shock absorbers
- Textile processing and computer technology: the sewing foot from textile machine manufacturer Bernina uses the optical sensor of a computer mouse
- Cosmetics and car washes: Beiersdorf uses a substance found in car washes in its Nivea “Black & White” deodorant
Now that we have looked at the prerequisites and application examples, the crucial question is: How can cross-industry innovation be implemented? With the Model Concept – Combine – Create.
Concept (Why)
In the first step, we take the problem to a higher level of abstraction. Questions such as:
- What exactly is the problem?
- What other questions does this raise?
Let’s take the example of BMW iDrive: What is the problem? The use of a screen in the car significantly increases the driver’s options. However, a complex button combination (as was previously the case) distracts the driver from the traffic. What alternative control options are there?
Combine (What If)
In the second step, we look for similar problems and possible solutions in other sectors. Example: In what other situation is a manual control used that does not require special attention, but which controls complex processes – Answer: The gaming industry. Here, the joystick is used to operate computer games.
Create (How)
In the third step, as much information as possible is sought about the combination concept and the findings are applied to the company’s own products. Example:
- How exactly do joystick controls work?
- Are there different methods?
- What materials are used?
Provided there is a strategic willingness to engage with and be inspired by completely new industries, the application of these three steps can deliver exciting new ideas. Important at this point: the implementation of the individual steps can take a long time if the discussion is in-depth. You have to keep reminding yourself of this, especially when a first glance at other sectors does not immediately produce a promising idea.
Similar approach: analogy method
The analogy method follows a very similar approach. Essentially, this method is also about using the right questions, solutions and approaches from other areas for your own problem. However, in contrast to cross-industry innovation, the analogy method pursues this approach at a different level. Where the cross-industry approach produces at least radical innovations, the analogy method can help with incremental intent. In contrast to other industries, this method uses parallels to structurally similar things in everyday life, making the method much more low-threshold and therefore also suitable for inexperienced teams.
Conclusion: Cross-industry innovation can be a good approach
The successful examples of the big names clearly show that the cross-industry innovation approach is an extremely promising one. It is therefore very well known and widely used, and rightly so. Nevertheless, this approach does not necessarily have to be the best way forward in a radical innovation project; design thinking, for example, can also be suitable. Choosing the right approach depends on many factors – objective, available resources, strategic readiness, economic starting position, to name but a few.
