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The Simple Way to Innovate and Differentiate

Cheeseboard pizzaMany times business owners and marketers look for ways to create innovations and points of differentiation through elaborate technical add-ons or by attempting to create entirely new product or service categories.

From my experience, one of the best way to create an innovation or differentiation for your business is to take something people already understand they may want and need and make it even easier to want, need and understand. In fact, the true test of this theory is when you can create something so simply brilliant that people can and do explain it to their friends with ease.

I witnessed a stunning example of this on a recent trip.

Pizza is a pretty mature category. Delivery was a huge innovation in the industry years ago, but it seems like tinkering with the crust and baking variations is all that’s left to work on.

The Cheese Board Collective Pizza, in Berkeley, California has created a dead simple innovation and incredible point of differentiation and it’s made for a very healthy, buzz worthy business.

The concept is this. Instead of serving up a menu of pizza variations and cooking each to order the restaurant offers one unique pizza each day as it’s only menu item. I was there on a Friday night and the line for pizza ran out the door and down the street for some time. Patrons order any amount of the pizza they like at $20 per pizza and, as seating is very limited, often plop down outside and around the store and eat picnic style while listening to a jazz trio. The fixed menu, fixed price, make it in quantity approach allows them to serve thousands a day, but the pizza was also one of the best I’ve ever eaten. While it would difficult to capture the cult-like following this place seems to enjoy, it sure looks like a duplicatable concept waiting to happen!

A couple other important mentions that add to the differentiation – the pizzas are always vegetarian (narrowing their market a bit, but hey, it’s Berkeley.) They use higher end ingredients, such as organic crimini mushrooms and goat cheese, as their business model allows them to make great margins. The business model, as the name suggests, is a collective. All twelve employees own the business, are paid the same, manage the business, ring the registers, bake the pies, and wash the dishes. Profits are shared and reinvested in the business.

So, how could you strip what your business or industry does, something people already get, down to a simple innovation and create an innovation that anyone can understand, buy and talk about?

Image credit: keenduck

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  • http://emmanuelgonot.com Emmanuel Gonot

    It's amazing to see such successful innovations in action. I think the key here is in knowing exactly what the customers want. They were able to target those key innovations – simplified menu, high-end organic ingredients, and going collective – because they knew all of these would appeal to the Berkeley niche. It's either they're already part of that community or they know how to listen well to the people in that community. Seen in this context, I think that you can only successfully innovate and differentiate your offering from the rest of the competition by listening to and learning from your customers. Thanks for this post, John, and the delicious example of innovation and differentiation in business.

  • http://twitter.com/DefunktShirts Defunkt Shirts

    This is a brilliant idea…

  • http://www.ducttapemarketing.com/blog ducttape

    Emmanuel – I agree, knowing or even being one's customer is one of the surest ways to finding innovation, but you've also got to be looking – I see business ignoring the obvious right under their nose because they are so in tune with normal.

  • http://www.ducttapemarketing.com/blog ducttape

    Particularly when you see it in action

  • Elizabeth_H

    What an excellent idea! So simple, yet it's obviously working well for them. It definitely makes me think on how I can simplify my business models and how I can better differentiate my offerings.

  • markallenroberts

    great post!

    This is why I wrote my first book branding backwards, and why, though everyone said I was nuts, its free on my blog at http://www.nosmokeand mirrors.com .

    First know yourself, intentionally brand yourself or the market will brand you by default.

    next deeply understand your buyer needs, and your innovations will be solutions to their problems and instantly connect.

    thank you

    Mark Allen Roberts

  • http://www.IndyLeafPickUP.com/ Joe

    I'm trying a very low tech action (Leaf Removal) and seeing whether people will buy and schedule service online.

    This came from my nightmare of trying to find, qualify and get pricing on my own leaf removal. We'll soon see if it works with the public.
    http:www.IndyLeafPickUP.com

  • teamtherisetothetop

    This a great idea, I'd love to hear other ways how entrepreneurs were innovative. The most impressive idea I have heard is a company called Cupkates, mobile cupcakes fueled by twitter. Each day the cupcakes are loaded into a van they drive somewhere and then tweet their location, they sell out every day.

  • BJ

    it's = it is