Unleashing New Value with Tech and AI: Tactics for Product and Technology Innovators

Replika AI companion (Replika, n.d.)

Providing new functionality isn’t always the fastest path to success, but when done right, it can be your golden ticket. The secret? Deep consumer insights. Often people can’t express what they want or need, but observation and probing can help you uncover these insights. The opportunities and features that arise from these insights can be framed as new product features or entirely new value propositions. Here are two tactics, with AI examples, for offering new value.

Offer a New Value Proposition

New value propositions often emerge from the innovative combination of existing features, unlocking entirely new possibilities for users. An intriguing example is Replika, an AI-driven chatbot designed not just for conversation, but for emotional support. Remember the movie, Her? By combining natural language processing with sentiment analysis and personalized learning, Replika offers a unique value proposition: an AI companion that learns from and grows with the user, providing a form of virtual friendship or even therapy. If done right, AI companions can work wonders for individuals, however, AI companions also raise many ethical questions; without the right guardrails, or designed with bad intentions, they can have a devastating effect on their users. More about this in a new series of articles to be published in 2025 (follow me to stay updated).

This new value proposition demonstrates how a product can deliver unprecedented value by addressing needs that users didn’t even know they had. Similarly, consider the way MidJourney redefined the concept of art creation. By combining AI with user-driven prompts, it allows anyone—regardless of artistic skill—to create stunning, personalized digital art. This wasn't just about providing a new feature; it was about reimagining what art creation could be, offering a platform where creativity and AI work hand in hand to bring imagination to life.

Offer a New Feature

ChatGPT, once a groundbreaking value proposition, continues to enhance the user experience with carefully conceived new features. Consider, for instance, ChatGPT's "canvas" feature. Recognising that users were repeatedly copying and pasting text between ChatGPT and Microsoft Word to refine their writing, they developed the canvas feature, allowing users to edit text directly within ChatGPT or request targeted improvements for specific sections. In doing so, ChatGPT has effectively become a text editor itself.

It’s important to remember that new features might not always be immediately understood or appreciated, especially when the technology is still evolving. Think about the early days of AI-driven assistants. When voice recognition was in its infancy, many people found the technology cumbersome and unreliable. Fast forward to today, and AI assistants like Siri and Google Assistant are ubiquitous, with their voice-activated functionalities becoming a standard expectation in smartphones and smart devices.

Dos and Don’ts for Unleash New Value

💎 Focus on Benefits and Value: People might not initially understand the need for a new feature or product. Emphasize the benefits and value rather than the technical details.

🔄 Iterate and Test: Continuously test and refine your ideas and messaging.

👀 Observe User Behavior: Sometimes, the most valuable insights come from observing what people do rather than what they say.

⏳ Don’t Expect Instant Success: The road to innovation can be long and winding. Educating the market about a new product or feature often requires substantial effort.

🔍 Don’t Ignore the Details: The devil is indeed in the details. Small improvements and refinements can make a significant difference.

Unleashing new value through innovative features and value propositions is both an art and a science. By deeply understanding consumer needs, even those they might not be aware of, you can create products that not only stand out but also resonate deeply with your audience.

So, whether you’re a product manager, product owner, marketer, technology innovator, agile professional, or journalist, embrace these strategies to drive innovation. Focus on the benefits, iterate your ideas, observe real-world usage, and prepare for a journey that, while potentially challenging, can lead to groundbreaking success. Cheers to new value and endless possibilities!