I’ve written a number of posts on innovation and yet I still get client requests to further help them innovate successfully!
One of the favourite articles here on C3Centricity about the topic is “Improving Ideation, Insight & Innovation: How to Prevent Further Costly Failures.”
Despite all the great ideas and tips it includes, I believe there is still more I can share. That’s why I am adding to last week’s post on marketing in general, with a post specifically about improving your innovation. In particular, I wanted to help those of you who may be unable to complete all the “best-practice” actions I recommend, through a lack of resources, be it time, money or people.
Not every organisation has access to large market research or marketing departments and extensive budgets. In fact, in many companies these roles are being handled by one and the same person with very few resources; is that your case? If so then you will definitely find this post of interest. But even if you’re one of the luckier ones with a good size team and plentiful budget, I’m sure you will still find value from the ideas shared.
Let’s start by taking a look at some of the reasons why new products fail. And then we’ll identify some creative ways to completely eliminate them from your next launch. Sounds good? Then read on.
Why your innovations fail
Did you know that the proportion of product launches which fail every year is generally “guesstimated” to be somewhere between 74% and 95%?
Why CEOs accept such abysmal levels and accept their organisations’ continued use of the same old innovation process is beyond me!
In this article in HBR, Saul Kaplan, author of “The Business Model Innovation Factory” shared five important reasons that explain why companies fail at business model innovation:
- CEOs don’t really want a new business model.
- Product is king. Nothing else matters.
- Cannibalization is off the table.
- ROI hurdles are too aggressive for fledgeling models.
- Rogues and renegades get no respect.
I find these five reasons spot-on. They are all based on fear of getting outside the organisation’s comfort zone. If you can identify yourself with even one of these, it might explain why your innovations are not as successful as you would like them to be.
Successful innovation involves change, and human beings don’t like being out of their comfort zone. It may involve challenging accepted ideas and ways of working too. No wonder so many innovations fail.
And with such odds, I think it is incredibly courageous to start a whole company based around just one new product idea, but that seems to be the norm for startups in many areas today.
Taking the organisational reasons mentioned above, I’d like to detail ten more ideas I have found in my work with clients as to why innovations fail:
#1 The process itself: Innovation is by definition a creative process, but many organisations use a well-worn, restrictive and uncreative process to develop … Read the rest