The 5 Secrets of Hidden Innovation - Secret #3

Secret number 3 is "The Hidden Market".

There are two different aspects to this secret:

1. The forgotten market.
2. A change in the current market.

The best example of the first point is the story of Walmart. Before it was a global presence, Walmart began expanding by building stores in semi-rural areas for customers who were miles away from a shopping mall and normally relied on local small shops. The cost of their stores was low because the land was cheap. Customers flocked to their stores because there were few, if any, alternatives. As a result, the power of an underserved market made Walmart into the world's biggest retailer.

The second point can be illustrated by the well known example of IBM's inability to recognise the changes to the PC market, deciding to stick to their mainframe technology. Market changes for this point can result from new technology, cultural change (see secret 2), new legislation or any other number of factors.

So, to innovate using the hidden market, ask the following:

* What clients aren't we helping? Why? Is there a different approach we could take for them?
* Where will the market in accounting or tax etc. be in the next 5 years?
* How are things changing? Is there a demand for a type of service not seen a few years before? If so, what ideas can we develop in this area?
* What are our unspoken ideas about our market? Are we missing something?

If you think the world of accounting is stable and doesn't change much, remember this quote from Peter Drucker in his book 'Innovation and Entrepreneurship', "Actually, market and industry structures are quite brittle. One small scratch and they disintegrate, often fast."