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In the current business sector, companies must stay ahead of emerging trends and changes to achieve sustained success. Traditional business methods often fail to address emerging challenges, so companies require a fresh approach.
In business, innovation has become more than a simple buzzword; it comes in various forms and methodologies. One such approach is innovation by analogy. It involves drawing parallels from unrelated fields to solve pressing problems.
This article explores our perspective on the relevance of analogical thinking. We examine how ideas from diverse industries can be applied to create breakthrough solutions in different businesses and sectors.
What is analogy in thinking skills?
Analogy in thinking skills involves comparing different scenarios to gain insights or solve problems. In business, thinking in analogy involves applying known strategies from one area to solve challenges in another. For example, technology industry tactics might help innovate in manufacturing, applying tested solutions to new contexts.
The success of analogies in business hinges on selecting appropriate comparisons. Leaders must carefully assess similarities and differences between the analogy and the current issue. Superficial comparisons can lead to poor decisions, so a thorough analysis is crucial.
Businesses should employ a method called similarity mapping to evaluate analogies. This approach ensures the analogy fits the problem well, preventing common pitfalls. Proper analysis avoids confirmation bias, where decisions might favor preconceived notions.
Why is analogical thinking effective?
Innovation by analogy is a powerful tool that promotes the cross-fertilization of ideas. By recognizing commonalities among unrelated problems, businesses can
- Gain a speed-to-market advantage
- Reduce risks and costs associated with new product development
- Promote a culture of innovation
Analogous thinking abstracts product functionality targets to their basic chemical and physical phenomena. It identifies industries tackling similar challenges, benchmarks potential concepts, and iterates until top candidates are confirmed.
How does analogical thinking work?
The process of analogous innovation involves several key steps:
- Problem identification: Clearly define the problem and its context. This step is crucial as it ensures that the innovation process is focused and relevant. It also helps in communicating the issue to stakeholders who might contribute diverse perspectives or resources.
- Abstraction: Abstract the problem to its basic principles and identify underlying patterns. This helps in generalizing the problem, making it easier to find relevant analogies. Abstraction also aids in detaching from specific details that may cloud creative or strategic thinking.
- Finding analogies: Identify similar problems and solutions in unrelated industries. This can often lead to breakthrough ideas by cross-examining knowledge and methods. It’s important to stay open to unexpected areas, as sometimes the most valuable insights come from the least expected places.
- Adaptation: Adapt these solutions to the specific context of the original problem. This involves tweaking the borrowed ideas to fit the unique requirements and constraints of the new situation. It’s a delicate balance of retaining the core of the solution while making necessary adjustments.
- Assessment: Evaluate the feasibility and effectiveness of the adapted solution. Consider both short-term and long-term impacts to ensure that the solution is sustainable. This evaluation should involve rigorous testing and soliciting feedback from end users.
Key benefits of analogical thinking:
Analogical thinking provides businesses with innovative ways to address complex problems by drawing on successful strategies from different contexts. Here are five key benefits of utilizing analogical thinking in business.
Complex problem solving
Analogical thinking facilitates creative problem-solving by drawing parallels between unrelated industries or scenarios. This allows businesses to use existing knowledge and insights, leading to innovative solutions. By examining how similar issues were resolved in different contexts, companies can uncover new approaches to their challenges.
Better decision making
Analogical thinking enhances decision-making by providing leaders with insights from diverse contexts. Examining how solutions have worked in different scenarios helps in evaluating various strategies and outcomes. This process is crucial in complex or unfamiliar situations where traditional decision-making may fall short.
Develop innovative strategies
Thinking using analogy encourages looking beyond conventional boundaries to discover unique innovative strategies and operational tactics. This is particularly beneficial in sectors where differentiation and innovation are key to competitive advantage. By applying successful strategies from other industries, businesses can innovate effectively.
Promotes Learning
Analogical thinking promotes a continuous learning culture within organizations by encouraging the exploration of new ideas and concepts. This can lead to the adaptation of best practices from various industries to enhance overall business operations.
Potential drawbacks of analogical thinking:
Analogical thinking, while beneficial, can pose significant challenges when used in business strategies. These challenges arise from the potential misapplication of analogies, cognitive biases, and the hindrance of innovation.
Misleading analogies
Applying incorrect analogies can mislead strategic decisions. For instance, early internet companies used unsuitable analogies, leading to flawed strategies. This shows how analogies can misguide when not properly matched to the business context.
Superficial analogies may ignore crucial differences between compared situations. This oversight can cause businesses to adopt strategies that do not align with their unique challenges. Proper evaluation of analogies is essential to avoid these pitfalls.
Cognitive biases
Cognitive biases complicate the use of analogies in business. Confirmation bias leads managers to favor information supporting their existing views. This can result in disregarding critical differences that undermine the analogy’s relevance.
Anchoring bias influences decisions based on recent experiences. Managers might rely on familiar but irrelevant analogies. Recognizing these biases is crucial to mitigate their impact on strategic decisions.
Innovation constraints
Overreliance on analogical reasoning can stifle innovation. Businesses focusing too much on past models may miss novel solutions. This reliance limits their adaptability to changing market conditions.
Encouraging diverse thinking is vital to promote innovation. Businesses should balance analogical thinking with fresh and creative approaches. This helps ensure they remain adaptable and open to new opportunities.
Case studies in analogous innovation:
This section presents example case studies of how we apply analogical thinking to find potential solutions to the most pressing and costly challenges in the food & beverage consumer goods sectors. These challenges were provided after asking 3 industry experts the following question: If you had unlimited time and budget, what’s the biggest challenge you would want to solve?
Preventing microbial food spoilage
Microbial spoilage is a significant global sustainability challenge, particularly in the context of fish losses. Over 30% of annual fish production is compromised due to spoilage issues in the food supply chain. A promising solution to this problem comes from the healthcare industry.
BioInteractions’ TridAnt coating was originally developed to resist infections and curb biofilm formation on medical devices. It has been identified as a potential game-changer for food packaging. This non-leaching coating targets a broad spectrum of bacteria, boosting food packaging efficiency and potentially reducing spoilage. While cost remains a consideration, the benefits of extending shelf life and reducing food waste are substantial.
Microbial spoilage in seafood is troublesome because fresh seafood is highly perishable. Its high water content makes it susceptible to microbial growth, leading to spoilage. Conventional seafood coatings, such as those based on polyethylene, offer benefits like transparency, flexibility, and water resistance. However, they lack inherent antimicrobial properties. The TridAnt coating can make a significant impact wherever other products fail.
Researchers are committed to developing antimicrobial coatings to extend seafood shelf life. These coatings work either in combination with modified atmosphere packaging (MAP) or as an independent method. The adoption of TridAnt coating technology in seafood packaging can potentially revolutionize the industry by reducing food waste and increasing product shelf life.
Preventing dairy fouling
Fouling during dairy product manufacturing is a major issue. It accounts for up to 80% of production costs due to the need for rigorous cleaning-in-place procedures.
Drawing inspiration from the marine industry, AkzoNobel’s B-Free Explore coating was originally designed to prevent marine growth on boats. This coating also helps in addressing dairy fouling, offering a potential solution for the industry.
The AkzoNobel’s silicone polymer coating is suitable for surfaces like aluminum and steel. It can reduce the environmental burden associated with periodic cleaning procedures. Further research is needed to confirm its effectiveness in repelling calcium and phosphate ions in dairy equipment.
Protein denaturation and salt precipitation during thermal processes in dairy production lines can lead to fouling deposits on equipment surfaces. These deposits harm heat transfer mechanisms, create thermal resistance, and necessitate regular shutdowns for cleaning.
The deposits also form sites prone to bacterial biofilms if not adequately removed. Antifouling coatings like B-Free Explore offer a solution by preventing the adhesion of food residues, and help in
- Increasing production yield
- Reducing cleaning costs
- Improving equipment productivity
- Reducing cross-contamination
- Minimizing food waste
Finding non-PFAS materials
The ski and snowboard industries face rising health concerns due to the use of PFAS-containing fluorinated waxes and solvents. These chemicals, known as “forever chemicals,” pose significant health and environmental risks.
A potential solution lies within the aircraft industry, where a super-omniphobic coating technology developed by Tsinghua University shows excellent liquid repellency and minimal ice adhesion forces. The technology, if adapted for use on ski and snowboard equipment, could provide a safer alternative to PFAS-based materials.
Skiers and snowboarders rely on wax to reduce friction between their equipment and the snow. This helps to enhance their performance and experience. However, the widespread use of PFAS-containing waxes is a cause for concern due to the persistence of these chemicals in the environment and their potential health impacts.
The super-omniphobic coating technology developed for aircraft surfaces, with its liquid repellency and ice adhesion reduction properties, presents a promising alternative. If successfully adapted for use in ski and snowboard equipment, this technology could replace PFAS-based waxes. It offers a safer and environmentally friendly option for winter sports enthusiasts.
Real-world applications and successful analogy examples:
Here, we examine real-world applications and success stories of analogical thinking in various industries. These analogy examples highlight how innovative solutions have emerged by drawing parallels from different fields.
The Maclaren baby buggy and aeronautics
One of the most iconic examples of innovation by analogy is the development of the Maclaren B-01 baby buggy. This revolutionary product drew inspiration from aviation design. It utilized lightweight aluminum rods, sturdy triangular structures for reinforcement, and twin landing gear wheels.
These design elements, typically found in aircraft, were adapted to create a baby stroller that was both light and strong. Introduced in 1967, the Maclaren B-01 became the world’s first and most popular stroller. It has maintained its status as a benchmark product to this day.
BMW’s iDrive and the video game industry
In the automotive industry, BMW’s iDrive system is a prime example of analogous innovation. The iDrive system, launched in 2001, drew inspiration from video game joysticks to create an intuitive control interface for car functions.
With over 200 buttons and switches in a luxury car dashboard, BMW needed a more streamlined and user-friendly solution. By mimicking the joystick control used in video games, BMW created a system that allowed drivers to effortlessly execute functions. This business innovation brought a totally intuitive user experience that is still used in BMW cars today.
Salesforce and different industries
Salesforce’s journey to becoming one of the most widely used CRM platforms involved drawing inspiration from diverse sectors. By looking at service (on-demand delivery), airport check-in kiosks (event self-service points), and the music industry (street teams for launches and campaigns), Salesforce developed a cloud-based, self-maintaining CRM as a service. This approach revolutionized the CRM market, providing a cost-effective and efficient solution that has maintained the #1 position in CRM market share for the past nine years.
What comes next?
The future of innovation by analogy holds immense potential. As industries continue to evolve, the ability to think outside the box and draw inspiration from unexpected sources will be a key driver of success. Developments in digitalization, material science, climate change, and globalization are changing the dynamics of various industries. This makes it imperative for companies to adapt their processes and embrace new technologies.
PreScouter’s structured methodology uses teams of advanced-degree analysts and Subject Matter Experts with cross-disciplinary backgrounds to objectively evaluate product innovation challenges. By engaging a network of experts, PreScouter provides clients with customized global research, helping them gain a competitive advantage and stay ahead of emerging trends.
If you have any questions or would like to know if we can help your business with its innovation challenges, please contact us here or email us at solutions@prescouter.com
