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the innovative LEDGER
An e-Newsletter from The Innovative Edge™ Inc.

  Vol. 7, No. 1 - January 2007
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The Sole of a New Machine
By Jeff Govendo

What you’re looking at is a vacuum cleaner – two, really – one for each foot. It’s the new Dustmate, by that venerable Swedish manufacturer of high end vacuums Electrolux. You vacuum while you walk around (I know… with the Roomba robotic you don’t even have to walk, but this one is practically guaranteed to go where you want it to).

The Dustmate is one of a new generation of products to come out of Electrolux’s Consumer Innovation Program, an initiative undertaken by the company over the past 3 years in its quest to offer consumers appliances they really love. It joins a new lineup of product offerings and prototypes that includes a waterless clothes washer, a countertop “couples’” dishwasher, a soft-sided refrigerator that folds up, and digital placemats with changeable designs.

These don’t sound like the kinds of things Electrolux – known mostly for its highly competent, pricey and, well…stodgy vacuum cleaners sold door-to-door – would be putting out. But in 2003, faced with falling market share and a rising flood of cheaply produced appliances in Asia, CEO Hans Straberg decided they needed to overhaul the company in order to survive.

He tapped one of his division chiefs, Johan Hjertonsson, to lead an effort to completely re-make the company and its products. In the past, this would have been seen as an engineering problem, left largely to the engineers to fix. Straberg and Hjertonsson realized, however, that there were few household products better engineered than Electrolux’s. The real problem was that the company didn’t know what consumers wanted or needed.

So Hjertonsson’s new approach contained two key elements missing from those of previous years. First, development teams became truly cross-functional rather than engineer-dominated. They now consist of designers, engineers, marketers, salespeople and – you guessed it – consumers.

Now, it’s gotten to the point where talking about the value of cross-functionality evokes a big yawn. Everyone “knows” how great it is to have diverse perspectives on a team, different areas of expertise, and so on. Why, then, do I still hear so often about such teams operating in name only? That when it comes to how ideas are considered and decisions made, these cross-functional teams are still apt to revert to their one-dimensional roots?

Perhaps it’s because diversity can get a bit messy, with all those contradictory views, non-linear thought paths and difficulties coming to consensus. Yet, they seem to be saving Electrolux’s skin.

The second element is the absolutely pivotal role the customer plays in determining new products. Yet by Hjertonsson’s own admission, “We never ask the consumer what they want. We do anthropology. We study the consumer.” Central to this is the home visit, where members of the team actually go and observe homemakers going about their daily routines, looking for areas in which a new kind of solution would make their day easier, more productive, or even more exciting. It is not, however, about asking the homemaker whether they would like this or that new feature on their appliance (think of the look they’d have gotten if they asked, “Would you like to wear your vacuum cleaner on your feet?”). Rather, it’s about making inferences from what they observe and thinking expansively about solutions that don’t currently exist in any form. True breakthrough innovation begins in such imaginative space, but few consumers would be able to articulate it directly.

Electrolux’s re-organization has given new life to a company that was destined to go the way of many other consumer brands we grew up with that no longer exist.

So the next time your Electrolux salesperson comes to the door, look for some really cool stuff. And don’t worry about him tracking in dirt from outside.

He can easily walk it off.

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Names We Like

We're always on the lookout for creative product or business names!.

  • Straight to Voicemail Tee (relaxed, travel shirt) - presumably there are no pockets for your Blackberry!
  • Elsewares (unusual, one-of-a-kind gifts) - the answer to the question, "Where did you get that?" might seem a little vague.
  • Petsmart (pet supplies retailer) - depending on which syllable you place the "s", can have 2 different meanings. Of course, this means nothing to your dog!
  • Presents of Mind ("cerebral" gifts) - now the recipient can really mean it when he says, "Oh, how thoughtful!"


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    Innovation Quotation

    "Learning is not compulsory. Neither is survival."
    - W. Edwards Deming




Copyright © 2007
The Innovative Edge, Inc.