Identifying Market Gaps and Unmet Customer Needs: A Framework for Ideating Innovative Business Concepts

Abstract

Organizational innovation and long-term performance, especially in the current turbulent environment, rely on the discovery of latent customer needs and market opportunities. It is based on the notion that there is a systematic way of identifying opportunities for growth and differentiation through analyzing trends, customers’ feedback or conducting market research. Companies may be able to enhance their ability to identify new trends and customer needs in global markets in a timely and efficient manner by leveraging advanced data management tools and AI-technology. To provide an example, involvement of external players through co-creation enhances the levels of understanding and accelerates the creation of new value. The framework's applicability is shown by two case studies: One is focused on pharmaceutical innovation that employs Outcome-Driven Innovation and Jobs-to-be-Done theory, and the other, social innovation that employs Product Service System, Design Thinking, and Applied Business Analytics. These studies illustrate the efficacy of the framework with respect to challenging social issues and customer-oriented innovation. for the same reason as the methodical approach of the framework, business ideas are more relevant and are likely to succeed in the market as they stem from actual client needs. Analysing further, extending the relevance to different generations, and adapting more to the changed markets are the future strategies to be followed. Ultimately, with this framework, firms obtain the tools they require to place innovation in practice, to induce sustainable growth, and to retain competitive advantage in dynamic global environments.