And Google - how do you make better search engine by "listening your customers"? No, you don't, you need an idea of pagerank foe example. Without that worthless idea you are toast, no matter how much you listen...
Oh and that thermonuclear reactor that we all dream about and what will resolve all energy problems on earth. No idea how to build it. Listen customers? Good luck with that.
* Customers want better search results -> Create an algorithm that finds better results.
* Customers want clean, abundant energy -> Find out about the thermonuclear reactor.
You're looking at it from the wrong side.
If customers didn't want better search results but instead wanted portals, Google would have died, and Yahoo and Altavista would be about as big as Google right now. How do you know they want better search results? By listening to their needs.
Your product-idea might be the best thing since slice bread, but it's worthless if no one wants it.
PS: I'm not saying Google or Ford used this process, of course. But they are extraordinary companies. Also, if enough companies try, at least some should come close to satisfying the customer's needs just by chance and some intuition. You don't hear about the companies that had a great idea, implemented it, and then dropped dead for lack of customers.
This is what I don't get about the regurgitation of that "quote". It's obvious that what people are asking for is something faster; "horse" is just a point of reference.
People could have asked for a smaller horse, or a horse that eats less hay, or a horse that doesn't shit so much, and if you're not a blindered literalistic you'll easily read between the lines.
The "users are clueless" meme is perplexing. If they're so clueless, what does that say about the products they choose?
I'm not arguing about that, that I agree actually. But your brilliant execution is equally worthless if you do not have an idea HOW you should execute. Creating an algoritm that finds better results is not something you just sit and do.
But. - As you may not know. Customers did not what mobile phones. At all. And they absolutely did not want SMS. By listening their needs, we still be using landlines these days. - Customers did passionately, desperately want videophones, since 70's I remember. :-)
So in effect people didn't know they wanted SMS but when they got it they loved it. People claimed they wanted Videophones but when they understood the drawbacks they balked.
Section 3.1 - http://infolab.stanford.edu/~backrub/google.html