Investing in Complementary Innovation

I came across an interesting article by Nicholas Carr on BoozAllenHamilton's Strategy+Business website. In it, he argues that while sticking to your core competencies is often good advice, there exist important exceptions to that rule. His fundamental premise is that products (and services) don't exist in a vacuum; they exist as part of an "ecosystem" of complementary offerings. Printers and ink and paper and computers and digital cameras, for one example. Automobiles and financing, for another. Carr points out that innovating in these "complements" makes sense for several reasons. They can increase demand for your core offering. They help you develop new skills, and perhaps open new markets. You may gain a key competitive advantage. He poses "Five Good Questions" about "uncovering and evaluating innovation opportunities in complements":

1. What complements are currently constraining demand in our core markets?
2. What new product might boost demand for our core offerings?
3. Would our customers buy more if they had better information?
4. Would we learn valuable lessons by innovating in complements?
5. Do we have competitors whose fortunes are tightly tied to the price of complements?

All in all, a very intriguing look at ways to innovate in any company.