WHEN YOUR INNOVATION IS NOT ENOUGH

Every company innovates! Whether it is a  Fortune 500 company, a mid or small cap company, a start-up, or a solo entrepreneur. I am convinced of this after working with and studying hundreds of companies. But not all innovation is alike. There are times when your innovation is not enough.

I have seen start-up management teams buzzing with ideas that they try on a daily basis. I have also seen large successful corporations spending millions of dollars on innovation. It almost seems like second nature for businesses to innovate.  This constant innovation is a result of firms hiring intelligent, creative, and driven people. These managers continually seek innovation opportunities.

When your innovation is not enough

One of my executive MBA students co-founded an innovative start-up with experienced marketing and advertising executives. The idea was to enable development and delivery of advertisement over the internet at low costs. They built an impressive platform. It allowed you to create a professional copy and deliver the same over the web. And they did it at a fraction of the cost an advertising agency would incur. Furthermore, their platform also allowed you to get analytics on an advertisement. It seemed to be a promising start-up idea to me. But that plan didn’t succeed in the market.

This story is not an exception but a norm in the start-up world. Many are called, but only a few are chosen. Most start-up ideas fail although they are often innovative. Even large companies face the same issue.  Innovating is not the same as succeeding with innovation. There are times when your innovation is not enough.

Mixed Record of Innovation

Take a look at some well-known companies and their innovation efforts.

Kodak’s Investment Results

Kodak was a pioneer in film roll and aggressively went after digital camera market. It spent over 50% of its R&D budget on innovation in digital space. Over a period of 10 years from 1983 to 1993, it spent over $5bn on this innovation. As a result, it created over 50 digital products for the market. But Kodak entered bankruptcy after struggling with innovation for over two decades.

Apple’s Innovation

Apple was not the inventor of MP3 players. But, it created a successful product called iPod that made the company famous again. It was not the first company to build a smartphone. But it brought the entire browser to the smartphone in a way that was never done before. These innovations were hugely successful in the market. These products made Apple one of the most successful companies in the device world.

Segway: The revolution that failed

Dean Kamen is a successful inventor with many successes under his belt.  He built a new to the world product called Segway. It was a personal transportation device that would help you travel short distances. When you stood on this instrument, you made it an extension of your body.  If you tilted forward, it moved forward. If you leaned your body a little back, it slowed down and stopped. You could travel on this scooter kind of device at reasonable speeds to nearby destinations.

Many major personalities in the investment and technology world loved it. They hailed it as the next big thing when they saw it the first time. Segway flopped in the market making no impact on the world of personal transportation that it was supposed to revolutionize.

Google’s Search Innovation

Google founders created a new way to index the word wide web. The search algorithm was so good that it became the dominant search engine. ‘To Google’ became a verb.  They didn’t stop innovating after reaching a dominant position. Instead, they continued to innovate. When the search went mobile, they needed to innovate in a new domain of mobile search. Their mobile search innovations were even more successful. As a result, Google became more dominant in the mobile search world.

BlackBerry’s Innovation

Blackberry was one of the first smartphone makers in the world. Its security capabilities and a tiny keyboard made it a favorite among the corporate clients.

When the iPhone and Android devices hit the market, Blackberry was surprised by these innovations. However, it continued to innovate and brought new features such as touch screen to the market. But in spite of these innovations, Blackberry lost ground and most of its market share.

Key Takeaway

All these companies innovated every day, with a lot of energy and drive. But some succeeded whereas others didn’t. What this tells us is that innovation is needed to survive, but innovation is not always enough. Just because you are innovating does not mean that your business is safe.

What is the difference between the companies that succeed with innovation and those that do not?