OVERVIEW
Why Do Most Innovations Fail?
Companies are constantly seeking innovations to stay ahead. But without a clear understanding of customer needs and wants, developing new products, services, and business models can be risky business. For many firms, innovation is guided either by company-centric thinking that focuses on products to sell, or by asking customers what they want. Both approaches are incomplete.
Consumers often have quite different perspectives than companies. As Peter Drucker once wrote, “The customer rarely buys what the company thinks it is selling”
Most customers are incapable of envisioning what a new product, service, or business model should be. They are usually not engineers or customer experience specialists. They know what they would like to get done, not the best way to do it
It is no wonder, then, that new offerings frequently fail. More than half of newly launched products end up falling short of company projections. The real game changers are even rarer. Only about 1 in 300 new products significantly impacts purchase behavior, the product category, or a company’s growth trajectory
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