The Innovation Imperative

Innovative firms

Able to Identify and seize market opportunities

Create positive attitude towards innovation

Routinize the innovation process

Practice team work and

Allow their people to experiment and even fail

Companies that fail to innovate:

Existing offerings vulnerable to changing customer needs and tastes

Shortened product life cycles

Increased domestic and foreign competition

New Product Sucess

Incremental Innovation

Disruptive Technologies

Unique, Superior product

New Product failure

90% of experimental drugs are unsuccessful

FailureAn inevitablePart of discovery

Reasons for failure :Misinterpreted market research

Overestimates of market size

High development costs

Poor design or ineffectual performance

Incorrect positioning, advertising, or price

Insufficient distribution support

Competitors who fight back hard

Inadequate ROI or Payback

Additional reasons for failure

Shortage of important ideas in certain areasFragmented MarketsSocial, economic and government constraintsCost of developmentCapital shortagesShorter required development timePoor launch timingShorter product life cyclesOrganizational support

Image credits(Flickr users)

Diana Pinto

DANG3Rphotos

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