An organization’s success depends on its ability to innovate. Innovation is necessary for any organization to survive in this fast paced environment, either to stay in the market, gain competitive advantage or ultimately make revenue. But in this process of solving a problem, organizations fail in their innovation approaches. Failure may not only be credited to innovation alone but may be with respect to products, projects or even in mergers and acquisitions.
According to process expert, Robert Cooper, out of every 7 new products, about 4 of them enter into development phase, 1.5 of them get launched, and only ONE succeeds. So that’s how tough the product success rate is. Which leads to the question, why do you think Innovation fails? What are the reasons and pitfalls? Read further below to know the reasons.
1.Not thinking Long Term:
Most businesses tend to focus more on short term goals & results than thinking from a long term perspective. Each organization sets its goals, results to achieve for next quarter and the strategy towards achieving those goals. In this process of achieving short term targets, most companies tend to spend big and allocate resources on sales and marketing. Thus most of the budget is used up leaving very less towards R&D and Innovation.
2.Lack of Innovation Mindset:
Other reason why Innovation fails is due to the employee mindset within the organization itself. Employees should have an innovative mindset to create something new thereby solving the innovation problem. The culture for this mindset has to be cultivated within the organization itself starting from the top and permeating in every level of organization. Companies need to boost creativity, brainstorm new ideas and nurture their employees to go one step beyond and think out of the box.
3.Fear of Failing:
Let’s say, you organization tried to come up with a very innovative product to solve your users problem. You have spent considerable amount of money and resources on research & development, sales or even marketing. But down the line it turns out that the product didn’t click or turned out to be failure. What impact does it have on your employees for future breakthroughs? Employees tend to be more afraid of failing at something that they decide not to even try anything new at all. A sense of low confidence can develop among the employees, a reluctance to try new things or get involved in new challenging projects.
4.Lack of Innovation structure and processes:
When you lack a structure and process in your innovation strategy it’s really hard to get tangible results out of it. Most organizations actually do not have a methodology framework or a structured process. A process and methodology is certainly required to achieve success when it comes to innovation. A proper framework is needed to evaluate the benefits and drawbacks. Assessment and analysis should be the top most priority for the companies and individual innovators.
5.Not understanding your Customers needs:
Innovation can also fail when organizations don’t know what their customer wants and needs are. A lot of new innovations fail because organizations are unaware of what user problem they are trying to solve, what do their customers want or come up with products which customers did not want in the first place. For disruptive breakthroughs, organizations need to understand what their customers are thinking and feeling, how they interact outside of their business with other companies and their consumer behavior.
6.Lack of Team Motivation:
You cannot innovate alone or it isn’t a one man’s job. Unless you have a team which is fully behind and supporting what you are trying to solve, Innovation cannot succeed. Innovation requires the harnessing and investment into individuals and teams. A number of initiatives fail due to the lack of rewards and recognition programs, transparency tools to generate & evaluate new ideas clearly, facilitated meetings and collaboration(internal and external) efforts. With motivated teams you get better innovation ideas, new insights and better outcomes. Your internal innovation teams needs to be energetic and fired up to build new innovative ideas and products.
7.Lack of Budget:
One of the most common reasons of Innovation failing is due to lack of budget or money invested in innovative approaches. If an innovation project isn’t being supported with the right money to gather teams, brainstorm ideas, build a prototype, quality testing etc then it will lose momentum towards completion. Budget is like a sign of commitment from the organization towards achieving or creating something extraordinary. Even though a lot can be done with a limited budget, organization must set right the balance and set aside a budget towards R&D and innovation projects.
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