Innovation is about Peak Experiences

We say something is “innovative” when it adds value compared to what came before.  In other words, change needs to result in value added for the innovation to be worth the work of producing it.

So what is “value added”.? Economists  argue that we get more value when we get more of something, though the added value from each added  increment diminishes.  More is better. And it turns out that this si BS.

More might be better. For example, if I am hungry, one bit of  dinner is not as good as 2 bites, and that goes on until I am not able to eat anymore. Even then, more food is still better if I can trade it for other stuff that I may not have. Like trading some dinner that I don’t want fo my sister for washing the dishes.

But more is only better if it produces a reaction. If I do not notice or do not care, more is not better in that context. And psychologists have uncovered that a lot depends when we receive the benefit.  More peak experience at the end of an event will be better than more peak experience in the middle. or the beginning.

This tells us something about the value of change. We will value it more highly if it offers an amplified peak experience at the end. For example, Amazon’s store where you walk out without having to pay.

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