If you are going to build your next innovation strategy, you cannot do without stretching your mind, by looking across six paths. This will challenge your assumptions.
The first path is that of your product/service substitutes.
Ask yourself: “What customer need is my product/service covering? What alternatives from different industries are able to deliver the same value and satisfy the same customer need? Why sometimes customers prefer substitutes to our offering?”
Banks for example, have underestimated the dangerous nature of external players, such as Google, Paypal, Apple and so on. They believed to compete only within the banking industry, not considering the broader universe of on-line and mobile services.