True innovation requires building features customers don't yet know to ask for. Bloomberg's success came from providing functionality users hadn't imagined was possible with computers, rather than just reacting to their explicit requests.
Your happiest, biggest customers are satisfied because your product already works for them. The most valuable insights for innovation and growth come from understanding your non-customers—the people not buying from you. Their unmet needs represent your largest untapped opportunities.
Instead of inventing new features, Prepared identified its most lucrative expansion opportunity by seeing users' painful workarounds. They noticed 911 dispatchers manually copy-pasting foreign language texts into Google Translate—a clear signal of a high-value problem they could solve directly.
Unlike typical software companies that build addictive products or simply fulfill requests, Palantir's approach is to anticipate and build what its partners *ought* to want in the future. This radical, value-driven strategy builds deep trust and creates an indispensable long-term position with the client.
While customer feedback is vital for identifying problems (e.g., 40% of 911 calls are non-urgent), customers rarely envision the best solution (e.g., an AI voice agent). A founder's role is to absorb the problem, then push for the technologically superior solution, even if it initially faces resistance.
Palantir's product strategy is "more artistic than science." Instead of reacting to current market demands, the company builds solutions that tap into deep, misunderstood societal trends, much like an artist captures the future zeitgeist. This approach means creating products years before their relevance becomes obvious.
Users often develop multi-product workarounds for issues they don't even recognize as solvable problems. Identifying these subconscious behaviors reveals significant innovation opportunities that users themselves cannot articulate.
This reframes the fundamental goal of a startup away from a supply-side focus (building) to a demand-side focus (discovery). The market's unmet need is the force that pulls a company and its product into existence, not the other way around.
Identify how users are already "hacking" your product for unintended purposes (e.g., using Facebook Groups for commerce), then build dedicated features to serve that existing intent. You can't make people do new things, but you can help them do what they already want to do more easily.
Truly innovative ideas begin with a tangible, personal problem, not a new technology. By focusing on solving a real-world annoyance (like not hearing a doorbell), you anchor your invention in genuine user need. Technology should be a tool to solve the problem, not the starting point.
Nubar Afeyan argues that companies should pursue two innovation tracks. Continuous innovation should build from the present forward. Breakthroughs, however, require envisioning a future state without a clear path and working backward to identify the necessary enabling steps.