Unlocking Game-changing Innovation: Recombining Old Ideas in Novel Ways

Whether it's navigating a shifting market, pioneering a new product category or tackling consumer perception issues, the ability to creatively recombine past successes is a strategic advantage. Tomorrow's innovations don't always require reinventing the wheel - it's often enough to assemble the best elements of past successes in new, impactful ways.

The concept of “precedents thinking” is based on cross-industry, cross-technology and cross-disciplinary borrowing of ideas that can lead to breakthroughs - all while reducing the uncertainty and expense associated with radical innovation.

This approach encourages entrepreneurs to systematically look for existing precedents, i.e. proven solutions or concepts whose core idea has already been successfully applied, and to creatively combine and adapt them to new contexts. Instead of inventing from scratch, this approach leverages known ideas and recombines them in innovative ways.

The concept is most famously illustrated by such groundbreaking breakthroughs as Henry Ford's assembly line and Reed Hasting's Netflix model, both of which are the result of creative combinations of existing ideas.

Prime examples of precedents thinking adopted by some of history’s greatest entrepreneurs

Consider some of history’s most successful entrepreneurs who creatively recombined existing proven concepts in novel ways. Let’s break it down further:

Henry Ford did not invent the automobile, but he revolutionized car manufacturing in the late 19th century by adopting (1) the concept of the moving assembly line from the meat-packing industry to car production. He adopted (2) “japanning”, a fast-drying black enamel that hardened faster than any other paint color available at the time, to speed up Model T production. This process contributed to Ford's famous policy of offering the Model T in “any color, as long as it's black”. He also used (3) the employee profit-sharing scheme introduced by William Procter of Proctor & Gamble in 1887 to reward fast workers and help them afford their own cars. Finally, he drew inspiration from the network of independent dealers set up by Isaac Singer in the 19th century, thus avoiding the expense of employing a vast sales force. By combining these precedents, Ford transformed his struggling company into a market leader. As he later remarked, “I invented nothing new. I simply assembled the discoveries of others.”

Reed Hastings did not invent streaming technology, but he creatively merged elements of subscription services and digital content delivery to build Netflix into an entertainment powerhouse. He recognized (1) the power of subscription models and applied them to DVD rentals in the late 1990s, offering unlimited rentals for a fixed monthly fee rather than the individual rate used by Blockbuster, (2) the potential of the Internet as a novel way to deliver content. Netflix capitalized on technological advances in broadband and video compression to offer movies and TV shows without physical media, (3) it integrated a sophisticated recommendation engine to personalize content suggestions to keep users engaged and loyal, (4) finally, it drew inspiration from cable networks like HBO to start producing original shows (e.g. House of Cards). This transformed Netflix from a distributor into a content giant, further consolidating its competitive edge.

Precedents thinking: a practical, proven framework  

Precedents thinking follows a three-step process:

1. Frame the challenge. Clearly define the business problem or opportunity, breaking it into its key elements.

2. Search for precedents. Identify past innovations, whether from within or outside your industry, that relate to those key elements.

3. Combine and adapt. Integrate the most relevant aspects of those precedents in new ways to generate fresh ideas and solutions.

Albert Einstein referred to this method as “combinatory play.” By deliberately combining existing elements in new configurations, businesses can systematically generate breakthroughs.

Examples of precedents thinking used to tackle consumer perception issues

Consider the cannabis industry, where stigma remains a significant challenge despite legalization in many regions. Rather than attempting to force a radical shift in public perception, some companies are creatively combining precedents from luxury branding, wellness marketing, and direct-to-consumer models to reposition cannabis products. By borrowing from the playbooks of high-end wellness brands, they are reshaping the narrative around cannabis, framing it as a premium lifestyle product rather than a stigmatized substance.

This approach mirrors what Starbucks did for coffee - elevating an everyday product into an experience-driven, premium offering. Similarly, alcohol brands have long used storytelling and premium packaging to shift perceptions. By leveraging these established precedents, cannabis brands are addressing stigma with lower risk and cost compared to attempting an entirely novel strategy.

Another compelling example is the plant-based food industry. Companies like Beyond Meat and Impossible Foods have successfully tackled the stigma around plant-based diets by leveraging precedents from the meat industry - focusing on taste, texture, and branding rather than positioning their products as strictly health or environmentally driven. By marketing plant-based burgers as delicious, indulgent, and nearly indistinguishable from traditional meat, they have reshaped perceptions and expanded the market beyond traditional vegetarians and vegans.

Final thoughts

There's fierce competition to be the first with a great idea. The secret to success is to combine old ideas in new ways to solve creatively framed problems.

Entrepreneurs prepared to revisit, reshape and reapply established ideas will create added value in unexpected ways.

The “precedents thinking” concept provides them with a reproducible and reliable approach towards this end.