Question

Why do you think so many innovation projects fail to generate an economic return? Please explain and add real life examples.

PLEASE ANSWER IN 350 WORDS AND IN WORD FORMAT ONLY.

THANKS

Subject: Management of Technological Innovation

Answer 1

Innovation is nothing but coming up with a new idea or a product. Innovation leads to a solution that meets the new requirements in the market. Most of the people say that the innovation is very important for the success of the company. But most of them forget that there is both positive and negative innovation. Not all innovations are a success and not all of them will be accepted by the market. When someone comes up with a new product or a service the company thinks it can add value to their business and attract more customers. But they also need to know whether the innovation has all the qualities that the customers are looking for in a product or a service. Sometime the innovation might not be affordable to have for all the customers. Some of the features in the new product or service might have a negative impact on the health of the people in the longer run. These type of factors make the innovation projects fail. Most of the companies realize these factors when they complete the project and start selling to the customers and some realize it during the development stage when they test the feasibility in the market. Not just the market and the customers, innovation can have a negative impact on the company working on it as well. The people involved in the project might face the negative consequences and the project might fail in the initial stages. The company might have to invest in it more than what they can afford to and in some cases, they will not have the expertise to develop the product or a service that is a very good idea. We can take Windows 8 as an example. The company invested a lot in this operating system and they totally changed the way in which the operating system operated. It is very innovative but the customers and market made it a big failure and the company suffered huge loses. We can even consider Google Glass as failed innovation and this is because not everyone can afford to buy Google Glass. It is a very expensive innovation and it also had features that were quite controversial. So the project failed miserably and never saw a public release.