August 14, 2024
Innovation is both engaging and risky. Thousands of innovative ideas fail to become successful products and generate revenue. So, what sets the few thriving innovations apart from those that fail? The answer lies in a strategic approach.
“Our new product creates more value for our customers than anything else on the market, and we should get paid accordingly” [1] Innovating based on the features we think are great, rather than the features customers truly need, will always lead to failure. But should we stop innovating because of the risk? Absolutely not. Instead, we craft a safer path that increases our chances of success.
To understand common pitfalls and how to avoid them, let’s examine two case studies from major companies: Amazon and Google. These stories reveal crucial insights into why some innovations fail and how strategic frameworks can prevent them.
In 2009, Google introduced Google Wave, a platform intended to revolutionize online communication by combining email, instant messaging, and social networking into one seamless experience. The timing seemed perfect, with digital communication tools trending. Unfortunately, Google Wave didn’t live up to user expectations.
Google Wave faced turbulence, mainly due to its overly complex user interface. Users struggled to understand its functionality, and it lacked critical features like notifications—akin to an alarm without sound or vibration.
Lesson Learned
Google developed an idea with great market potential, but a premature launch and incomplete development drove users back to what they knew worked—established, functional platforms.
Amazon decided to dive into the competitive smartphone market with a bold vision. Their product, the Fire Phone, featured 3D technology that allowed users to scan and buy any product directly from Amazon. On paper, it was a technical marvel. However, reality turned out differently.
The Fire Phone was priced higher than its competitors. Despite its groundbreaking 3D feature, it didn’t provide enough value to justify the cost. Customers found other premium smartphones more reliable, user-friendly, and equipped with robust app ecosystems—something the Fire Phone unfortunately failed to deliver.
Lesson Learned
Amazon came up with an impressive product on the tech side, but their Achilles' heel was poor market direction, which left customers no choice but to pick other options.
While both Amazon’s Fire Phone and Google’s Wave were brimming with innovation, their stories highlight two critical facts: innovation must focus on customer needs and technological excellence. Guided by these stories and countless others, we created a framework to guide our innovation efforts, one that adjusts to our budget, minimizes failure risks, and encourages continuous growth.
Recognizing innovation as one of our cornerstones, we needed an approach that was as secure as possible. Here’s what we came up with:
Adaptable
We tailor our approach depending on whether we aim to directly address customer needs or leverage cutting-edge technology, always staying flexible to adjust our path as we progress.
Customer-Centric
Deeply understanding our customers is paramount. We’ve built our approach around their needs, preferences, and behaviors, ensuring that everything we do—from business strategies to product development to marketing—delivers what they truly value.
Iterative
We believe in continuous improvement as the cornerstone of quality. We developed an iterative framework that helps us prototype, test, gather feedback, and fine-tune through permanent cycles.
Scalable
Products and services must be designed to scale and evolve. Our approach ensures our solutions adjust to growing demands and market shifts, recognizing when it’s time to pivot.
Risk-Aware
Innovation always carries risks. It’s essential to be aware of them and understand when they’re no longer feasible. We’ve set clear boundaries to guide us in making the tough call to stop.
The kommit’s Innovation Framework combines strategic lessons from case studies with our core principles to transform innovative ideas into tangible outcomes. Our framework is built around four key processes:
Predicting product success always involves inherent uncertainty. However, applying this framework has significantly helped us embrace innovation on a firm footing. We hope this framework can support other companies’ innovation efforts. We know any process has room for improvement, so please let us know if you have any thoughts or ideas on how we can improve.
Written by: kommit
When companies are in a rush to deploy new technologies, they must first consider what capacities and capabilities they have.
September 17, 2024 Read more Laying the Groundwork: Preparing for IT ProjectsWhen companies are in a rush to deploy new technologies, they must first consider what capacities and capabilities they have.
September 17, 2024 Read more Laying the Groundwork: Preparing for IT ProjectsIf we don't take automation seriously, our competitors will. This article explains how we do it at kommit, preventing us from wasting resources.
May 30, 2024 Read more Automation is a Competitive Advantage, Not a Nice to HaveIf we don't take automation seriously, our competitors will. This article explains how we do it at kommit, preventing us from wasting resources.
May 30, 2024 Read more Automation is a Competitive Advantage, Not a Nice to Have© 2009 -2024 kommit, All Rights Reserved
Home Services Innovation About Us Blog Contact© 2009 -2024 kommit, All Rights Reserved
Home Services Innovation About Us Blog Contact