The Innovation Diaries

If you are impressed by the Threadless business model and liked Staples Invention Quest but felt it was lacking something, you had best take a seat …

Last night my friend told me about Muji’s new innovation strategy in Japan. Their new CEO wants 30-50% of all new products to come from the public and hey have a super smart bit of software that makes this really doable. Members of the public submit ideas to their website - pure text - drawings - videos - whatever. (Their incentive for doing so is royalties if the idea happens). People vote on the best idea. So far exactly like Threadless. Here’s where it gets good…

When you vote you get asked a few Greenhousing questions - what could be better? How much would you pay? The idea grows within the website. When it is considered done, they send out a tender request to a roster of manufacturers from mum and pop enterprises to the massive Japanese conglomerates. They submit their bids and the best one is selected.

The item then goes on pre-sale on the Muji website.

When the break even point has been hit (say 1000 units at $20) the order gets released to the manufacturer and the stuff gets made. Any items sold over the break even point is pure profit - and there is no risk whatsoever. Genius!