How To Innovate June 24, 2009, 12:33PM EST

How to Kick Off an Innovation Project

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OfficeMax first introduced its TUL private label brand of pens, markers and desktop items in 2006. The idea was to emphasize style and design in the workplace

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This analogous research, along with the deeper understanding of their customer that Gravity Tank presented to a cross-section of executives during a two-day off-site, gave Office Max the confidence that a female-focused strategy would succeed. Last year, the company introduced a line of products based on one of the first insights to come from the research: Women wanted products with more personality. This April, the company launched the InPlace System by Peter Walsh, a new line of organizational products that includes a super sticky Post-It, developed for OfficeMax by 3M (MMM), as well as plastic file folders more durable than paper ones.

It's early to judge how successful the campaign has been. But Vero is upbeat. "We have so much good research," he says. "And when you have good research, it's hard to go too wrong."

What can executives learn from OfficeMax's research-based approach to innovation?

• Focus on Unspoken Needs

Needs represent market opportunities, but consumers are unlikely to come out and say, for instance, "I want a better way to label file folders." Researchers read between the lines to uncover real needs.

• Study customers in their environment

You'll learn far more observing people's everyday behaviors than you ever would by asking them questions in a focus group.

• Watch for Contradictions

When someone says one thing and does another, that's often the sign of an opportunity.

• Identify Your Target Customer

In-depth ethnographic studies usually involve no more than a dozen subjects, so make sure they are the right ones. Depending on the project, it might be important to include subjects from different regions or countries, or to get a mix of urban and rural participants. A food company, for instance, needs to understand regional differences in eating habits, while a pet food maker might want to study the differing needs of city dwellers and out-of-towners.

• Use Multiple Tools to Record Material

In addition to written notes, the researchers used video, which allowed them to capture rich detail. Audio is useful when researchers want to be less obtrusive. An advantage of still photographs is that they are easy to sort later as researchers review materials looking for common problems and other valuable insights.

Jessie Scanlon is the senior writer for Innovation & Design at BusinessWeek, where she covers the intersection of design and business.