Innovation by subtraction

We tend to think that the best way to innovate is to add new features to our products or services. What can we add that increases the appeal of our offering? Michael O’Leary, the founder of Ryanair, looked at the business process of passenger flights and built a new model by subtracting all the frills that meant extra cost. He subtracted:

Travel agents – you book direct over the Internet so the middlemen and their costs are cut out.

Tickets – you show your passport and quote your reference number. Subtracting tickets saves costs.

Allocated seating – you choose a seat when you get on the plane – just like on a train or bus.

Free drinks and snacks – if you want a drink you have to buy it.

Customer care – Ryanair has one-tenth the number of customer care attendants per passenger mile compared to BA. If you have a complaint the answer is generally – ‘hard luck but what did you expect with such a cheap flight?’

Next time you face the challenge of how to refresh your product don’t just think about adding new features or services. Think about what you can cut out of the process or product. How can you make things simpler, less costly and more appealing to customers?