How much innovation is necessary?

Putting Innovation on a Measurable Footing

In uncertain times and challenging economic environments, a critical question arises: How much innovation is truly necessary? Innovation is not an end in itself—it must create real business value. To do that, it must deliver meaningful value to customers. The Jobs-to-be-Done (JTBD) approach makes customer needs measurable and helps transform innovation into a strategically focused and predictable lever for growth.

Innovation Is Not an End in Itself

If you’ve been following the rise and fall of “innovation labs,” you might think innovation exists for its own sake—something that looks good and inspires. The value for the core business is often dismissed, with arguments that innovation must be allowed to fail and remain detached from day-to-day operations. “That’s just how innovation works,” we’re told.

Unfortunately, this mindset has led to bloated idea pipelines, low success rates, and projects disconnected from core strategy.

But the truth is: Innovation is not an end in itself. It is a key lever to secure competitive advantage, anticipate customer needs, generate long-term value, and ensure the company’s future. Core business teams pay the salaries; innovation teams should secure the pensions. As Peter Drucker famously put it: “Marketing and innovation produce results; all the rest are costs.” At least, that’s how it should be. In reality, things often look quite different.

This brings decision-makers to a key question: How much innovation is actually needed?

Innovation Requires a Clear Vision

Boards and C-level executives play a more important role in innovation today than ever before. Even if innovation labs disappear, product portfolios must still evolve. Innovation may change departments—but it remains central to long-term business success.

To rein in scattered innovation efforts, a clear vision is essential. And it is the leadership's duty to provide it. A strong vision narrows the field of possibilities and provides sharp strategic guidance. A vague or open-ended vision leads to fragmentation and wasted efforts.

This is no simple task. Where should one begin? Our belief: start with the customer. The Jobs-to-be-Done approach provides leaders with a fact-based understanding of customer needs. This enables the creation of a vision that becomes a stable North Star for innovation. Human needs are remarkably stable—even as technologies and products change rapidly. That’s why shifting into the unfiltered customer perspective is step one.

Think from the Customer’s Perspective: Jobs-to-be-Done

This shift is challenging. Many companies think within the constraints of their own products and markets. Take a cookware manufacturer: their R&D might focus on the next generation of pots and pans—but not on helping people cook more easily or clean up afterward. The internal view is rarely the customer view. Customers, however, aren’t bound by business models, internal constraints, or categories.

How do customers look for solutions? The best answer so far is Clayton Christensen’s Jobs-to-be-Done theory. The core idea: people and businesses “hire” products to get a job done—i.e., to achieve a goal. The better a product helps accomplish that goal, the more likely it is to be used and succeed in the market.

Crucially, the “job” often transcends product or industry boundaries. For example, one common job is “to unwind in the evening.” Solutions might include Netflix, a glass of wine, sports, or a bath. From the customer’s perspective, all of these are competing options—not just other streaming services.

This shift in thinking has profound consequences. Rather than asking what else we could build with our technology, companies must ask: How can we help customers get their job done better? JTBD breaks old habits and puts the focus squarely on what matters: real customer goals.

Measuring Customer Needs with the CFI Process

The JTBD lens opens a wide field of innovation opportunities. But that’s precisely what needs to be narrowed. That’s why Vendbridge developed the Customer-Focused Innovation (CFI) process. It quantifies unmet customer needs tied to specific jobs-to-be-done. This keeps innovation grounded in customer reality while making clear where the best opportunities lie. The result: innovation becomes sharply focused on 3–5 high-potential areas.

We simplify here how customer needs are measured. The results are remarkably stable—often usable for 5+ years. Some of our clients still work with results from a decade ago. Human needs evolve much more slowly than technologies.

A key output of CFI is the Customer Value Matrix:

The Customer Value Matrix

This map visualizes the outcome of a quantitative survey where customers rate the importance of a JTBD-formulated need—and how well current solutions meet it. For example, for the job “to unwind in the evening,” one need might be “to feel calm as quickly as possible,” or “to have the relaxation last as long as possible.” Typically, we uncover 50–100 such needs per job.

CFI emphasizes measurability: each need is formulated with a clear unit—often time—so it can be quantitatively assessed later. Can a new solution significantly reduce time or increase duration? That’s how we measure success.

These needs are uncovered through deep customer interviews, focus groups, existing internal data, and—where needed—augmented by our Jobs Metric AI for hard-to-reach target groups.

The Customer Value Matrix makes it crystal clear which needs remain unmet—pain points. These are where innovation must focus. Only innovations that solve an unmet, relevant customer need deserve continued investment. This allows innovation to be guided by customer reality and hard data—dramatically increasing the odds of success.

With CFI, innovation is placed on measurable footing.

Back to the Core Question: How Much Innovation Is Enough?

Here's our answer: Enough to address the unmet customer needs that are strategically relevant and solvable within reasonable cost and effort. Everything else should be deprioritized.

Recommendations for Decision Makers

1. Align Innovation with Customer Needs

Shift from a product- or technology-driven mindset to a JTBD perspective. Focused attention on unmet, measurable customer needs maximizes ROI.

2. Define a Clear, Customer-Focused Innovation Vision

Develop a consistent innovation vision that sets the strategic boundaries. Avoid open-ended mandates that lead to scattered, low-impact projects.

3. Create Measurable Decision-Making Frameworks

Use data-driven tools like the Customer Value Matrix to steer innovation toward real pain points and strategically relevant opportunities.

4. Focus Resources on Strategic Pain Points

Prioritize 3–5 innovation fields based on unmet customer needs and business strategy. Eliminate scattershot efforts and focus on what truly matters.

This article appeared first in: https://www.weka.ch/management/unternehmensfuehrung/newsletter-verwaltungsrat.html

Conclusion: The Path Forward

In conclusion, innovation is essential for growth, but it must be purposeful. By focusing on customer needs through the JTBD framework, we can ensure that our innovation efforts are not just creative but also effective. The right approach can turn untapped potential into measurable profit. So, how will you align your innovation strategy with customer needs? The time to act is now.