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Your Innovation Funnel Is a Differentiation Blender
By Jasmine Gruia-Gray
Why Products Enter Distinct and Exit Identical
Pomona was the Roman goddess of fruit trees and orchards, revered for her extraordinary skill at pruning. While amateur gardeners hacked at branches indiscriminately, Pomona understood which tree limbs to cut and which to preserve. She would remove branches that appeared healthy, saving ones that seemed weak or awkwardly positioned. She knew the vigorous-looking branches were often consuming resources without producing fruit, while the odd, uncomfortable branches were positioned to catch sunlight others could not reach.
The difference between Pomona's orchards and common ones was not the act of pruning. Everyone pruned. The difference was knowing which cuts strengthened the harvest and which merely made the tree look tidy.
Your differentiation is decided upstream, during feasibility and development phase gates, not downstream during launch. Some stage gate committees can prune products the way amateur gardeners prune trees. They retire risk by cutting what looks risky rather than solving creatively. By the time your product reaches launch, the branches positioned to reach high-value customer pain points have been pruned away in favor of a tidy, symmetrical feature set that produces a commodity harvest.
Risk Retirement Through Standardization, Not Creativity
Stage gate committees face legitimate risks: manufacturing complexity, regulatory uncertainty, market adoption barriers, margin pressure. Their job is to retire these risks before launch. The problem is not that they manage risk. The problem is how they retire it.
Committees retire risk by standardizing to proven approaches. Novel chemistry creates regulatory risk? Revert to standard formulations. Custom manufacturing creates production risk? Switch to conventional processes. Unfamiliar positioning creates sales risk? Simplify to comfortable messaging. Each functional group optimizes for risk reduction within their domain. None are evaluated on whether the cumulative effect destroys competitive differentiation.
Differentiation lives in the gap between what customers need and what competitors provide. That gap exists because serving it involves complexity, novelty, or departure from standard practice. Pomona would solve for the harvest by finding creative ways to support awkward branches. Committees solve for risk reduction by cutting awkward branches. The incentive structure guarantees differentiation gets pruned.
Consider Geoffrey Moore's Crossing the Chasm framework. Early adopters tolerate complexity for innovation. Mainstream customers want reliability. Stage gates optimize for mainstream acceptance before you have established the beachhead market that proves your differentiation works. They prune the branches that matter most to early adopters, the customers who generate the proof you need for mainstream adoption.
The Three Branches You Cannot Afford to Prune
Protecting everything is protecting nothing. Your critical job during feasibility and early development is prioritizing which customer pain points matter most to which personas. Like Pomona examining her orchards before pruning season, you must identify which branches will produce valuable fruit before committees begin making cuts. Three categories of differentiation, once pruned during phase gates, leave you with a commodity harvest at launch.
Branch One: Alignment with Severe Customer Pain Points.
Differentiation that addresses the customer problems causing the most frustration, wasted time, or failed outcomes. Does this feature solve a pain point severe enough that customers have actively sought workarounds, complained to vendors, or abandoned projects? If customers are not urgently seeking solutions to this problem, the feature does not produce essential fruit regardless of technical sophistication.
Branch Two: Economic Differentiation That Changes Unit Economics.
Differentiation that materially impacts customer cost per result, time to result, or labor requirements. Does this feature change customer ROI calculations by 20% or more? If it saves substantial time, labor, or consumable cost, this branch produces valuable fruit.
Branch Three: Workflow Integration That Reduces Adoption Friction.
Differentiation that eliminates barriers between your product and customer adoption. Does this feature eliminate a reason customers might delay or decline purchase? If removing it creates new adoption barriers, this branch produces critical fruit.
Protecting Branches Before the Cuts Start
Identifying which branches to protect is insufficient. If you enter the funnel without explicit protection mechanisms, committees make pruning decisions based on functional comfort. You need a framework that operates before amateur cuts destroy your harvest.
Step One: Quantify Customer Value Before Feasibility Gate.
For each differentiating feature, establish customer economic impact in specific terms. Not "faster" but "reduces prep time from 4 hours to 90 minutes, saving $180 in loaded labor per plate." Not "better sensitivity" but "detects 50 pg/mL versus competitor limit of 200 pg/mL, enabling early-stage disease biomarker studies." This quantification serves two purposes: it separates meaningful differentiation from nice-to-have features, and it gives you negotiating leverage during gate reviews.
Step Two: Establish Differentiation Gatekeepers with Veto Authority.
Stage gate committees include functional representatives with veto authority: regulatory can veto if compliance is uncertain, manufacturing can veto if production is not feasible. Product management typically has no equivalent veto for differentiation. Create explicit veto authority for designated requirements. For protected branches, elimination requires Product Management approval with documented market impact analysis. Without veto authority, you negotiate differentiation from a subordinate position. With it, you force committees to quantify their objections as rigorously as you quantified your market opportunity.
Step Three: Elevate Differentiation to Requirements, Not Features.
Stage gates distinguish between requirements (non-negotiable, define viability) and features (negotiable, can be descoped). If your differentiation lives in the features list, it will be pruned during scope negotiations. Elevate protected differentiation to requirements status by tying it directly to go/no-go market criteria. This transforms negotiable features into market requirements that define product viability.
Prune for Harvest, Not Comfort
Pomona knew which branches to cut because she understood which ones would bear fruit. Stage gate committees retire risk by pruning branches that look difficult to support. The difference is creativity. Pomona found ways to support awkwardly positioned branches. Committees eliminate them.
You will face legitimate pressure to retire risk before launch. That pressure should drive creative solutions that preserve differentiation while addressing legitimate concerns. Challenge committees to solve for both risk reduction AND differentiation protection. Quantify customer value by persona. Elevate differentiation to requirements. Claim veto authority over pruning decisions that destroy strategic positioning.
Most companies recognize the value of differentiation only after it has been pruned during development phase gates. By launch, the strategic positioning is already decided. Protect your differentiation upstream, where it can still be saved.
Q: How do I convince committees that differentiation justifies additional complexity or risk? ▼
Build your case with three elements: customer economic impact (specific numbers on money or time saved), competitive gap analysis (what competitors offer and why your approach matters), and market size validation (revenue at risk if you launch without this differentiation). Present descoping as strategic abandonment: "We can simplify to standard approaches, which saves $120K in process development. The cost is abandoning a $40M market segment where we would have no competition for 18-24 months."
Q: How do I propose creative solutions that retire risk without pruning differentiation? ▼
Come to gate reviews with alternatives, not objections. If manufacturing raises production risk concerns about novel capability, propose phased implementation: launch with manual processes to prove market demand, then invest in automation once revenue validates the approach. If Sales objects to positioning complexity, propose targeting a narrow beachhead segment first to build proof before broader launch. Frame these as "how we retire risk while preserving differentiation" rather than "why your concerns are wrong." Committees respond better to PMs who solve problems than PMs who defend features.
Q: How do I know if differentiation is worth fighting for? ▼
Apply the customer substitution test. If you remove this differentiation, will target customers substitute a competitor product, delay purchase until a better solution emerges, or continue using their current workflow? If they substitute or delay, the differentiation matters strategically. If they purchase your product anyway with minor complaints, it does not matter enough to defend. Fight for differentiation that changes purchase decisions. Concede features that do not.