Is your innovation pipeline empty or overflowing right now? Are you struggling to come up with the next big thing for you and your company.
I would like to introduce you to one of my favorite tools that I learned about during my MBA studies that I still use today. It is called the Ansoff Matrix. It will help you come up with ideas of what to do next for your company. It is a 2×2 matrix showing where existing and new products intersects with existing and new markets.
Market Penetration (Existing Products in Existing Markets)
This is basically figuring out how to sell more of what you make to people who already buy your product or service. You can do things like increase brand awareness, strengthen relationships, improve service delivery, and/or look at competitive pricing
Product Development (New Products in Existing Markets)
What you want to do here is figure out what is something new that you can make and sell to existing customers. For example, if you offer recruiting services then look at creating courses on how to interview that you can sell to your clients. You want to create things that are complementary to your main offering.
Market Development (Existing Products in New Markets)
This strategy involved taking what works and trying to replicate that success in a new market. It could be a new geography or demographic. See if a new customer gets value from the things are you already doing for others.
Diversification (New Products in New Markets)
This is always a fun one to experience. Here you are getting into a different market with a new product that you may have little experience or traction with. You could acquire a company or product from someone else that works with your company. You could buy a stake in a new emerging technology or a new process for producing goods and services. This is a way for you to get into a business different from yours.
I’ve used this framework for my executive search business and doing adjunct work for universities. You can use it for anything. If you would like help figuring this out follow me and let me know.