What Makes Innovations Fail
Since companies only have a limited amount of resources to spend on innovations, they want to be successful while using the least amount of resources possible. Companies must not only look at what will make the innovation successful but what might make the innovation fail. Of course, this is easier said than done. No one can predict the future or what consumers will do perfectly, as a result more than 90% of new products fail according to "Why Most Innovations are Great Big Failures". There are some things, however, that companies can do to attempt to predict whether an innovation will fail. Looking at innovation failures and investigating what traits made them fail.
The most common trait that causes innovation to fail according to the article "Why Innovation Fails" is companies focusing solely on "bringing their new product ideas to life". This may not sound like a bad thing, however when all the company worries about is the new aspect or innovation of the product they forget about consumer needs and then create a product that no ones wants. Innovators also need to explore the consumer needs and empathize with the consumer. Seeing the customer's perspective, by putting them self in the customers shoes, helps to mitigate some of the common mistakes that cause innovation flops.
Companies must also look at how they are going to implement their innovation into the real world. In the article, "Why Most Innovations are Great Big Failures", Google Wallet is used as an example of a good idea that was executed well leading to its failure. Google Wallet is an innovation that would simplify paying by putting your money and credit cards into your mobile device. Google did not take into account all the external factors, businesses needed new technology to accept this form of payment, their were new security issues created, other phone companies didn't support the service as it was seen as competition. Even though the innovation itself was a great idea it wasn't executed properly or effectively leading to its failure.
Future Research Question: How competition affects innovation?
Companies must also look at how they are going to implement their innovation into the real world. In the article, "Why Most Innovations are Great Big Failures", Google Wallet is used as an example of a good idea that was executed well leading to its failure. Google Wallet is an innovation that would simplify paying by putting your money and credit cards into your mobile device. Google did not take into account all the external factors, businesses needed new technology to accept this form of payment, their were new security issues created, other phone companies didn't support the service as it was seen as competition. Even though the innovation itself was a great idea it wasn't executed properly or effectively leading to its failure.
Future Research Question: How competition affects innovation?
No comments:
Post a Comment