KEY POINTS:
The second instalment in a nzherald.co.nz summer business series about the reading habits of a selection of our prominent businesspeople.
There are many interesting business books, but only few that will actually change the way you do business, says business incubator head Stephen Hampson.
For Hampson, What Customers Want is one of those books.
At the Canterbury Innovation Incubator they train companies in techniques from the book and use it to develop a common approach to tackling product innovation.
The major challenge for many of the companies the incubator works with is trying to figure out what it is their customers want - which is where the book comes in.
"It's more at the end of understanding what it is that customers actually want, without saying to them 'so what is it that you want?'," said Hampson.
"Because what they say they want is one thing, but what they actually require is often something else."
Hampson said a common mistake companies make is asking customers how they can improve a product rather than trying to understand what customers are trying to achieve with the products they use.
He said this may lead to some small incremental improvements but not a break-through product.
"So it's all about interpreting customer conversation that you can use to drive your product development and produce innovative products," said Hampson.
"So if someone says 'we need a lighter product' we'll go 'well, what is it that they really mean?'."
Hampson said this book is a must for anyone involved in inovation, but particularly managing directors and chief executives who are in control of research and development spending.
Hampson will be taking a break from innovation over Christmas and turning his attention to taming his garden.
* Stephen Hampson is chief executive of the Canterbury Innovation Incubator. Since graduating from the University of Canterbury in 1995 with a PhD in mechanical engineering he has specialised in product development and marketing.
Recommends: What Customers Want: Using Outcome-Driven Innovation to Create Breakthrough Products and Services by Anthony Ulwick.
