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INNOBLOG

the insider's guide to innovation

Wednesday, July 20th, 2005

Backpacks and CDs at Starbucks

Scott D. Anthony

The Wall Street Journal had two particularly interesting stories yesterday. The first ("How Water Backpack Went to War", reprinted without registration at the Pittsburgh Post-Gazette) talked about how a small company has found success adapting a backpack it developed for hikers for military purposes. The "CamelBak" gives users ready access to a clean water supply without needing to reach for a bottle, obviously a critically important need for soldiers in arid environments or under threat of chemical or biological attack.

Interestingly, the company that makes the "hands-free hydration system" (appropriately named CamelBak Products LLC) has said that its military work has helped its consumer marketing as well. The military forces it to push the frontier along different dimensions than regular consumers, and the innovations the company develops helps it further improve that offering.

A story like this one talking about how an innovation designed for the consumer market has found its way to the military crops up every few weeks. Someone who combines systematic thinking about unsatisfied jobs to be done of on-the-ground soldiers with focused innovation efforts will have a blockbuster business on their hands.

The second article ("At Starbucks, a Blend of Coffee And Music Creates a Potent Mix") discussed how Starbucks has moved into the music business. If youve been to Starbucks recently you probably have noticed this. Most Starbucks have a couple of CDs by the register. Some CDs, such as Alanis Morissettes recent effort, are exclusively distributed in Starbucks.

Although the connection between coffee and music might seem to be a bit tenuous, Starbucks forays into music make a great deal of sense. It comes back to that age-old question: What business are you really in? Starbucks wants to define itself as the third place beyond the home and the office. What do you do at a third place? Drink coffee, surf the Web and listen to music. Although its not clear exactly how big a money maker the CD business will be for Starbucks, it will be interested to see what other services the company layers on as it seeks to maintain its heady growth trajectory.

Any other examples of products cascading from the masses to the military? Or thoughts on reasonable add-ons at Starbucks?