Market New Innovation Approach Is Necessary For Innovation Process
Till mid-1980’s companies were fascinated with technology driven innovation, companies usually develop new technology and then attempt to find market. With failure rate of 90 percent and R&D under scrutiny many American companies realized how costly it was to continue using this hit and trial method. This approach was costing corporation ton of money. For example Motorola sold Iridium project for $ 25 million which costed them $ 5 billion. It was clear there is need for innovation in innovation process itself.
To make innovation process more efficient corporation started adopting customer driven approach. Now managers were trying to understand what their customers want by interviewing different groups, segmenting different needs and ultimately testing product concepts with lead-user. But after 25 years of customer driven approach failure rates are still 50 to 90 percent costing companies $100 billion each year. Expectancy rate of success might have increased but is just not enough. To tackle unique need of growing market new innovation approach is needed.
Before moving ahead there is one doubt that need to be cleared. Why customer driven approach failed? It was all about knowing what customer want and then delivering on their request. Actual problem was companies don’t know what types of information they need from customer and customer doesn’t know what they want or if they know they don’t know how to describe it. So whatever product or service company designs was…