There is no innovation without failure

Business

By CAPosts 14 January, 2021 - 05:00am 33 views

(Expansion) - In the search to make innovation a totally predictable and controllable act, many companies have created areas specifically dedicated to managing innovation, however, this approach towards the creation of new products or services has shown not to be working . Although, in some cases, they have developed new products or have changed their business model, they have not managed to develop a culture towards knowledge management, capable of creating new paradigms, that dare to go beyond just improving something already created .

Innovation as the driver of growth in companies is based on making bold bets, supported by experimentation processes, where it is not known in advance if these initiatives are going to work. You must be willing to fail because otherwise you will not be prepared to learn and therefore you will not be able to grow and evolve. When talking about innovation in technological solutions, it is inevitable that we talk about the technology adoption cycle that, as its name indicates, refers to how these products are assimilated by the market. At the extremes there are two options: evolutionary or continuous adoption, which does not imply any change with what has been done so far in terms of use and compatibility. In general, its value proposition focuses on improving either functionality, convenience, price or user experience and is the most common bet for many companies in the field of technology, where innovation does not imply any change of habit. And at the other extreme we have discontinuous innovation, which demands for its adoption a change in the way in which the product is interacted with and how it is consumed, that is, it requires modifications in habits and in the ways of generating and deliver value. It is desirable that Mexican companies begin to manage discontinuous or disruptive innovation, which originates from a deep process in the identification of weaknesses in the categories of existing products or services, and then go through a process of creative destruction that fosters changes in aspects like; the good or service, the predominant business model in the industry, the production techniques and processes, and the marketing models. For this, companies must take into consideration three elements; avoid working permanently thinking only of the present, not getting hooked in the long term to the characteristics of a successful product or service and staying close to changes in the value of the identity of consumers with the brand and products. The innovation approach adopted by most companies ignores these elements, with which their innovation is only limited to improving the functionality of a product, with average results of growth in sales and market share. Disruptive innovation in its initial stage is attractive to a market represented by consumers who are enthusiastic about changes, they are people who like to be the first to try new products, understanding the early phase of these products and services they do not expect a perfect operation nor a neat design and therefore they make a bet on their consumption, since they are solutions with the potential to significantly improve the performance (benefits) of a product or services.

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The companies behind these types of innovations are those that commonly manage to capture a higher level of profitability, given the high value perceived by consumers and its relationship with the commercial value of the good or service. This type of market also prefers to pay a little more, if this gives them the confidence of having a good product / service, with a good level of after-sales follow-up in case a problem arises. Companies that are prepared to manage the failure behind innovation are less fragile and bolder than companies that aspire to perfection as the means to increasing returns. Many fear failure because they ignore that this is a source of growth. Sometimes a certain situation is stigmatized as 'failure' and is no longer seen as something circumstantial to become something permanent. Innovating demands from the leaders of organizations the willingness to assume and face the real possibility of mistakes and wrong decisions. In innovation, both companies and people must stop playing to not lose what they have already obtained and change their paradigm towards playing to win what they do not have. Editor's note: Juan Alberto González Piñón is the director of Spark UP and an academic at the Faculty of Business at the Universidad Panamericana. Follow him on LinkedIn . The opinions expressed in this column are solely those of the author. See more information about this and other topics in the Opinion channel

Source: MSN