The Importance of Differentiation in Product-Market Fit

Is creating a product that fits the market enough, or is there more to successful innovation?

Old architecture and new architecture divided diagonally by a line.

Reaching product-market fit will not magically solve all your problems. 💣

Many corporate innovators are focusing on making their products fit the market.

But “fitting” your product within a specific market often means you want to be compared to what others do:

- 🚫 You are building an AI-driven CRM software, which means you will be compared to other CRM systems;
- ⛔ You are creating a radically new 3d-printing nozzle which doesn’t leak filament, which means you are still competing with other 3d-printing nozzles;
- 🔴 You deliver a cleaning service with high-tech cleaning robots, but you will still cannibalize from the regular cleaning services market.

Just creating a product that fits a market won’t set you apart.
It will get you in a rat race of who creates the “best” product in a market.

Successful innovation for me is not about creating the best product, but instead it is about:

- 🟢 Creating a product that solves the issues of your customers differently;
- 🍏 Forming a business model that charges your customers differently;
- 🌿 Designing a category that is different compared to existing markets.

You will stand out and solve most of your issues if you nail all three points.

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Don't create unicorns,
Let's breed blue whales.
🐋