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Why Great Innovation Starts With People, Not Technology

Successful companies grow 32% faster when they focus on human needs before technical solutions

Deep Dive: Focus On The People

"Innovation is not about technology, it's about solving problems. And you can't solve problems unless you understand people." - Satya Nadella, CEO of Microsoft

Technology isn't innovation. This seems obvious, but it's a mistake I've watched teams make for over 20 years.

They confuse the tool with the solution. They fall in love with the technology instead of the problem they're trying to solve. It's like thinking that owning a hammer makes you a carpenter.

I started programming at 12. I thought I loved coding, but what I really loved was exploration—the thrill of creating useful things. That distinction matters because it changed how I approach building products. Technology became the means, not the end.

Building things might be why I started programming, but making things that matter is why I embraced creativity, design, ethnography, and psychology. Without understanding how to create solutions that people actually want, we risk building technology that's disconnected, unfriendly, and ultimately unused.

The best innovators understand this instinctively.

Understanding the Problem Before Building the Solution

In 1999, a team of designers at IDEO was given the challenge of redesigning the everyday shopping cart. They didn't start by brainstorming high-tech features or fancy materials. Instead, they went out into the world.

They observed shoppers. They interviewed store employees. They watched what actually happened in grocery stores—the struggles, the workarounds, the moments of frustration that nobody talked about.

The result worked not because they used cutting-edge technology, but because they understood what people needed.

This project shaped how I approach product development. Before writing a single line of code or sketching an interface, I want to understand the human problem we're solving. Not the problem we think exists. The actual problem that shows up when you watch how people work.

At Hello Alice, we serve 1.5 million small business owners. When we built our AI-powered guidance system, we could have started with "what's the coolest AI we can deploy?" Instead, we started with "what do small business owners actually struggle with when trying to grow?"

The answer wasn't about AI at all. It was about feeling isolated, making decisions without guidance, and not knowing what questions to ask. The AI became a tool to solve those human problems, not a technology showcase.

Why Most "Innovative" Projects Fail

Every year someone asks me what I believe will be the next big tech trend. Will it be generative AI? Quantum computing? Blockchain 2.0?

These questions miss the point. It's like asking which paintbrush will create the next masterpiece.

Remember blockchain? In the 2010s, startups rushed to put everything on blockchain. Supply chain management. Voting systems. Medical records. Social media. Most failed spectacularly.

They were so excited about the technology that they forgot to solve real problems. The successful companies weren't the ones with the fanciest tech. They were the ones that made something people wanted.

The pattern is consistent: fall in love with technology, ignore human needs, watch your project fail.

What Technology Actually Is (And Why We Forgot)

Technology is older than science. Older than engineering too. At its core, it's just humans finding reliable ways to solve problems.

The formal definition doesn't mention code or processors or platforms:

Technology is the branch of knowledge that deals with the creation and use of technical means and their interrelation with life, society, and the environment.

Notice what's at the center: life, society, environment. Humans.

We've lost track of this. Every day brings announcements of new AI models or quantum computing breakthroughs. We celebrate each advance like it's revolutionary, but we've forgotten to ask why we're making these things in the first place.

The numbers tell the story: companies that focus on human needs—not just technology—grow 32% faster and deliver 56% better returns to investors. But we're too busy chasing the next shiny solution to notice.

It's as if we've confused the scaffolding for the building itself.

Starting With Why

The most important question in innovation isn't "how" or "what." It's "why."

When someone asks me to build something, I always want to know the purpose. Not the feature list or the technical requirements. The actual human problem we're solving.

Without understanding why, you risk building sophisticated junk.

This isn't just theory. Look at products that actually succeeded:

PayPal made sending money easier when it was needlessly hard. They didn't invent new payment technology. They asked "why is this so complicated?" and fixed the human problem.

Apple's iPod didn't invent the MP3 player. They asked "why do these all skip and hold only 20 songs?" and built something that worked the way people actually listen to music.

Airbnb saw that hotels were leaving a huge market unserved. They asked "why can't regular people rent out their spare room?" and created a platform that worked for both sides.

The pattern: start with the human problem, then find the simplest technology that solves it.

I've seen the opposite approach destroy countless startups. They had clever technology and polished interfaces. But they never asked the fundamental question: why would anyone use this?

Engineers often dismiss tools like the "Five Whys" and empathy mapping as soft skills. But they're actually the hard part of innovation. Building features is easy. Understanding which features matter is hard.

The discipline of constantly asking "why" is what separates real innovation from mere novelty.

When Innovation Looks Invisible

The hardest part of innovation isn't technical. It's psychological. It requires constantly fighting our tendency to fall in love with technology instead of problems.

IDEO's Clean Team project in Ghana is a perfect example. They were tasked with improving sanitation in areas without modern plumbing. They could have built high-tech toilets with sensors and app connectivity.

Instead, they created a simple service system that worked within local constraints. Low-tech collection. Straightforward maintenance. A business model that made sense for the community.

It worked because they focused on the human problem, not the technological opportunity.

Or consider Florida Hospital's patient experience redesign. They discovered their biggest problems weren't solved by better medical technology. The real issues were anxiety and confusion during stays.

Better signage. Clearer communication. Simpler processes. Low-tech solutions to human problems.

These examples share something: the technology eventually becomes invisible. When you're really solving human problems, people don't notice the sophistication of your solution. They just notice that their lives got better.

The best innovations look obvious in retrospect. Not because they were easy to create, but because they fit so naturally into how people actually live and work.

What This Means for How You Build

At Hello Alice, this philosophy shapes everything we build. When we developed our Business Health Score (a system that now analyzes 1.5 million businesses across multiple dimensions), we didn't start with AI capabilities.

We started by drawing parallels to personal health, then to personal financial health. There was a through line: the things people need to do from a behavioral standpoint and the things they need to do from a financial standpoint.

We talked to small business owners. We ran webinars and workshops. Some of our best insights came from talking to 10 or 15 people up front about what they struggled with. Over 100,000 people have now taken the assessment, but those early conversations were where we learned what mattered.

The Business Health Score uses sophisticated technology. There's a lot of processing happening on the back end. But that's not what we want users to experience. Our goal is to make it easier over time, to the point where the technology disappears completely.

That's the goal: technology so well-matched to human needs that people don't realize when they're using it. It just feels like clarity about where their business stands and what to do next.

3 Ways To Build Better

Start every project with a problem statement that has zero technology in it. Before discussing solutions, tools, or platforms, write down the human problem you're solving. If you can't describe it without mentioning your technology, you don't understand the problem yet. For example: "Small business owners make critical decisions in isolation" is a problem. "We need an AI chatbot" is not a problem.

Spend time with the people who will use what you build. Not surveys. Not focus groups. Actual time watching them work, understanding their context, seeing where they struggle. The insights from observation beat survey responses because you'll discover the gap between what people say they need and what they actually struggle with.

Make "why" the first question in every planning meeting. When someone proposes a feature, ask why it matters. When they answer, ask why again. Keep asking until you get to the human problem. This feels annoying at first, but it prevents months of work on solutions nobody needs. The discipline of asking why is what separates strategic product development from feature factories.

2 Questions That Matter

"If this technology didn't exist, what would we build instead?" This question reveals whether you're solving a problem or showcasing technology. If you can't imagine a low-tech solution, you probably don't understand the problem. The best innovations often start with the simplest possible solution, then add technology only where it creates genuine value. If your answer is "we couldn't solve this without this specific technology," dig deeper into the actual problem.

"Would our users describe this as 'innovative' or would they just say 'this makes sense'?" The best innovations feel obvious to users because they map so naturally to human needs. If people marvel at your technology instead of appreciating the solution, you've probably optimized the wrong thing. Innovation should feel invisible to users—they should notice their life got easier, not that your technology is sophisticated. When users say "why wasn't it always like this?" you've succeeded.

1 Big Idea

Technology becomes transformative only when it disappears into the background of human experience. The innovations that matter most aren't the ones with the most sophisticated technology. They're the ones that understand human problems so deeply that the solution feels inevitable. This requires a fundamental shift in how we approach building products: starting with psychology and ending with technology, not the other way around. The companies that win don't have the best technology. They have the clearest understanding of human needs and the discipline to let that understanding guide every technical decision. True innovation makes technology invisible by making human problems solvable.