Reruns of “Seinfeld” on Netflix are a glimpse into a 30-year-old time capsule that allows one to dig up innovative ideas that, for some reason, have never been implemented. One of the hidden potential startups is Elaine’s brilliant suggestion, when Jerry, George and she impatiently wait in line at a Chinese restaurant:
“You know, it’s not fair that people are seated first come – first serve. It should be based on who’s hungriest”
Credit: Seinfeld on Twitter
Silly idea? Or wonderful? It probably depends on whether you are hungry when you first hear it. One thing is sure, though – it is too seldom that one rethinks the nature of the connection between the various components of a system, product, or service, and thus, many an opportunity for real innovation is forever lost.
Imagine an external training program offered by your company to a limited number of employees. Since it is too expensive to send everyone who wishes to go, the company selects based on professional knowledge or experience.
At first thought this sounds like a logical and proper consideration, which ensures that the level of trainees is uniform, and participants can process new material based on their knowledge and experience.
But one can look at this situation from another angle. Those selected for training will probably be employees who already master the field, while employees with no background (but with high potential) will have a slim chance of joining. Paradoxically, this means that the cumulative value that the company’s employees have gained from this external training is lower than that of a similar training with participants with no previous knowledge.
The decision to use prior knowledge as a selection criterion for the training is an example of Relational Fixedness, one of the barriers that can interfere with innovation processes.
Relational Fixedness is the tendency to perceive connections and dependencies between variables of a system in one certain way, without being able to imagine different relations.
All types of fixedness are cognitive mechanisms that enable quick understanding of objects and situations, allowing us to take immediate action. Such mechanisms are beneficial and even crucial at both the personal and organizational levels. At the same time, they can be a significant barrier to innovation, as they make it difficult for us to identify new opportunities.
There are other ways to connect the dots
What does it mean to consider different relations between the variables of a system’s components? Let’s look at one of the important variables in any business: the price of the product.
Seemingly, there should be no connection between the price of a consumer product, such as a pair of glasses, and the characteristics of other parameters of the business, such as the location of the store or the day of the year. In practice, many business models display different pricing for the same product depending on these exact characteristics, as evidenced in holiday discounts or outlet stores. These models are examples of breaking Relational Fixedness.
And what do you think about this campaign by a major optical retailer in Israel? The number of percentage points discounted from a customer’s price is exactly the age of that customer. If the customer is 62 years old, he or she will receive a 62% discount.
But how do you produce such unconventional ideas, and how do you make sure they are more than a gimmick? We believe that the way to do this is through systematic thinking and the use of thinking tools that force the would-be innovator to perceive the components that are already available, but through a different lens.
The thinking tool that can lead to the generation of, for example, an age-dependent discount is called in SIT “Attribute Dependency”. The process of using this tool consists of listing the components of the product or system, specifying their characteristics, and then modifying the existing relations (or dependencies) between those characteristics (or creating new ones if none exist).
In the next section we will explain and demonstrate how this can be applied in the context of digital and data-based products.
Relational Fixedness in a data-driven world
What about the digital data-laden world we live in today – is Relational Fixedness prevalent there, as in the world of tangible products? Definitely!
Fixedness is not a feature of computers or databases, but a characteristic of human thinking, including those humans who make the design, marketing, and operational decisions in cutting-edge technology companies.
The information available thanks to digital tools can point to surprising new opportunities, which can easily be missed because they seem “illogical” or because fixedness prevents one from noticing them in the first place.
Despite the fixedness, the abundance of data that can be monitored, processed, and presented to customers has in recent years led to a wealth of new and fascinating models, and to the creation of connections that did not exist in the past between variables of product components.
Here are three reasons why companies choose to break Relational Fixedness in their digital products and offerings, and a few examples for each reason:
I. Make the most of the value embodied in the technology.
II. Improve conversion rates and sales
III. Design considerations and improving the user experience
It can be clearly seen that data-driven companies know how to make good use of valuable information to create new connections between variables of the application or product components. In fact, we have become accustomed to smarter and more personalized applications, making the most of every characteristic of users’ behavior, their surroundings and even the application mode itself.
How can such new proposals be systematically generated? And how can one change or unlink existing dependencies, in a way that is not intended to meet a particular need, but to open new horizons for surprising opportunities?
Applying the “Attribute Dependency” thinking tool can be just the answer. In addition to conventional thinking, which emerges from analyzing needs, this tool makes it possible to systematically explore additional possibilities. Here are the operating instructions for a simple version of the tool:
1. Prepare a list of variables:
2. Randomly select a pair of variables: one internal and one external.
3. Identify whether there is a relationship between the selected variables. If it exists – consider the possibility of changing or canceling it; If it does not exist – consider options for creating a relationship or dependency between the two.
4. Identify new opportunities that can emerge from the newly created relationship.
Here are some ideas created by using the tool, as a demonstration:
Applying Attribute Dependency is not trivial the first few times, because the process is counter-intuitive. In fact, when it comes to data driven digital products, the process may be even less intuitive than when seeking to innovate with a physical product, because of the wealth of “logical” options that can be realized before considering “weird” offers.
Gaining experience in activating this tool improves results dramatically. Since we have already chosen the less intuitive way – we have a good chance of reaching a surprising result that competitors will miss.
Now, back to Elaine’s idea of how to change the queue at the Chinese restaurant – maybe it’s worth adding a “how hungry are you?” question to the digital form used for booking seats in restaurants?
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