Innovation Strategies in Times of Scarcity

In recent years, businesses and consumers a-like have been grappling with increasing financial uncertainty as a result of rising energy costs, supply chain uncertainties and inflation.

Times like these reveal a paradox in traditional marketing, R&D and innovation mindsets.  Conventional strategies operate under an ‘abundance mindset’; they streamline our search for what customers desire and explore new methods to deliver it, presuming that as long as the product or solution is superior, customers will gravitate towards it.

But what if you already have what your customers need and want, but they can’t afford it?  Or you just can’t seem to reach them?  In these times of greater ‘scarcity’ – a better technology, more features or greater ‘added value’ won’t make a difference.  And reducing your costs more quickly than material and energy costs are rising to offer better value is often just standing still in the market, if it is possible at all.

In these scenarios where scarcity reshapes the business landscape and traditional models are disrupted, I’ve found it’s valuable to revisit a less well known innovation framework called the ‘4As’. This practical innovation tool, initially devised by Jagdish N. Sheth and Rajendra S. Sisodia and later brought into prominence by C.K. Prahalad in his influential book “The Fortune at the Bottom of the Pyramid”, approaches innovation from the consumer’s perspective—unlike the traditional ‘marketing mix’ or 4P’s which is angled more towards the marketers’ strategies.

Having applied the ‘4As’ to a range of different challenges throughout my career, across different industries and in both mature and emerging markets I’ve found it provides a unique perspective and grounding framework for taking a different approach. Whether it is helping to improve how consumers recycle; to drive use of otherwise compelling digital tools (such as our work with the Origin Digital Contour platform); developing new products for underserved customers – or how to grow disruptively in a new and challenging market, the tool provides structure for both understanding the barriers to growth and identifying valuable new approaches.

If you or your customers are faced with increasing ‘scarcity’ in the market I recommend trying to approach the challenge using the 4As. You can access a canvas we’ve developed to use it yourself for free here.  I’m always happy to discuss how I apply this to similar innovation challenges, and to share experience on how to use it in your context: just get in touch here.

For more in-depth support on using the ‘4As’ or other innovation approaches, our team are ready to help, ensuring your business can evolve and thrive, even when resources are tight.

Download the 4A’s Innovation tool here.