FAILED INNOVATION!!

1. Anumeha Singh FAILED INNOVATION!!

2. Content • Measurement of failure/ success • 4 main factor domains • Hyped up innovations • Innovations which failed earlier but were accepted later

3. How does one measure business innovation as a success or a failure?

4. 4 main factor domains (nature of failure under each of the domain is different for different cases) Technical failure Marketing failure Social reasons Institutional Failure

5. Technical failure • Presence of Technical Glitch • Technological limitation or support system default : Electric vehicle, Iridium phone • Not well tested before moving into market • Too advance technology to be accepted • Design Defect - innovation by APPLE(Newton)- Electronic Pricing machine

6. Marketing • Inadequate market analysis • Poor understanding of competitors strength • Inadequate assessment of market potential • Failure to perform adequate market research • Bad timing of introduction(Launch) • Higher cost than estimated • Inadequate marketing effort and efficiency • Inadequate sales resource • Inaccurate product pricing

7. Institutional failure • Lack of infrastructure • Inadequate capacity in firms for transition • Lock-in into existing trajectory or regime • Inadequate institutional framework: • Weak networks and flow of knowledge

8. Failed Innovations • Segway • New coke • Iridium Satellite Phone • Amphibious Car • Color Photo Copy Machine • Electronic Pricing machine • Water fuelled cars

9. Segway • A brilliant and novel technological device (rated as breakthrough on the novelty scale). • Its failing was the closed nature of its development. • No prototypes were tested in the marketplace. • Very little market research was done. • Segway was launched into a marketplace that simply didn't need it, or didn't need it at that price.

10. Water fuelled cars • Innovated by a Japanese company Genepax. • First concept released in Philippines 30 years ago, not much of its design is so far made public. • Unrealistic claims by the manufacturer. • The conversion to hydrogen from water is very inefficient and impractical. • Safety issues.

11. Electronic Pricing machine • First of its kind implemented in Singapore for congestion management. • Technology loopholes were present. • Causes traffic bottlenecks along smaller roads. • Payment uneasy.

12. Colored Photo Copy Machine • Invented by 3M in 1972. Taken over by Xerox. • Very high expectations. • Inadequate market research • Too advanced for its time. • Expensive as well as impractical.

13. New Coke (aka Coke II ) • Major marketing failure. • Step taken to outsell Pepsi sales. • Completely replaced the flagship brand ‘Coke Classic’. • Well researched for customer feedback, still failed. • ‘Coke Classic’ relaunched within 3 months of the introduction of ‘New Coke’ due to complete failure.

14. Iridium Satellite Phone • Unrealistic planning, insufficient management control, bungled marketing and a technological disaster. • Stiff price. Iridium handsets were priced as pounds 1,900 and calls were as much as pounds 5 per minute. • Mounting technical problems and an unrealistic launch timetable led inevitably to poor execution when it came to marketing.

15. Innovations which failed earlier but were eventually accepted • Internal Refueling of Aircraft • Napster (business model)

16. THE Million dollar Homepage http://www.milliondollarhomepage.com/ http://www.museumofhoaxes.com/hoax/weblog/permalink/buy_land_on_the_moon/

17. “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.”—Charles Darwin