Kodak's George Eastman realized his customers liked taking pictures, but hated developing film, writes Peter Merholz, so Eastman created a professional developing service. This approach to innovation is enormously successful, Merholz argues, because it makes use of a customer's willingness to "channel-hop," using different outlets to accomplish aspects of a single task. If a company can figure out which parts of a process customers like to do and which parts they hate, that knowledge can lead to a new service and create a long-term customer relationship.

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