Parallel Path Innovation Model

A business model where a company simultaneously sells other companies' products while developing their own product capabilities, as demonstrated by Nick Mowbray's experience.

Core Strategy Components

• Distribute other companies' products to build distribution networks

  • Hustle to get products into retailers across countries
  • Use existing products to open up distribution channels
  • Build relationships with retailers and distributors globally

• Parallel Development Path

  • Build internal product development capabilities while selling others' products
  • Gradually develop engineering and design teams
  • Learn from selling others' products to improve own offerings
  • Create manufacturing expertise through hands-on experience

Key Learning Points

• Early Product Quality

  • Initial products often had quality issues
  • Focused on shipping products despite imperfections
  • Used early failures to learn and improve manufacturing processes

• Evolution of Capabilities

  • Started with basic distribution
  • Gradually built engineering teams in China
  • Developed design capabilities over time
  • Eventually achieved advanced manufacturing automation

Modern Application

• Current Manufacturing Capabilities

  • Produces 57M water blasters annually
  • Fully automated production with no human intervention
  • Uses vision and machine learning for flexible manufacturing
  • Can adapt production lines automatically for different products

• Innovation Results

  • Evolved from basic manufacturing to advanced automation
  • Developed capability to produce customized products at scale
  • Built expertise across multiple product categories
  • Created competitive advantage through manufacturing innovation

The parallel path model allowed for immediate revenue through distribution while building long-term manufacturing and innovation capabilities.