Factors that impact the success of an INNOVATION Flashcards
The following factors impact the success of innovation and can either help to encourage success, or hinder it.
1.Timing
2.Cost
3.Marketing strategy
4.Technology
How do we measure success in innovation
1) It works: the innovation has got to the stage where it is fully developed, it works and it can be taken to the next stage of commercialisation and market launch.
2) Commercialisation: an innovation has been developed into a product or service and packaged with marketing strategies and launched into the market.
3) Integration into a product or service: the innovation has been incorporated into existing products or services, e.g. Improved quality, added features, better performance.
4) Income: sales and revenue can be attributed to the innovation.
Not important you can skip it
Timing
The timing of developing, or releasing an innovation to the Market, has a significant impact on how successful that innovation will be.
Timing :**Macroeconomic Trends **
Innovation is more likely to succeed during times of prosperity than times of economic slowing or downturn. Consumers are more likely to try a new product or service if they have more discretionary income and consumer confidence is good.
In stronger economic times ,**a company is more likely to take on the rsik of dedicating time on creating something new **
Timing :Product Lifecycle
The stage in the product life cycle will also have an impact on the success of an innovation. When a product is in the growth or saturation stage there is already brand awareness and market presence. Consumers know about the product, have bought it and there are established distribution and marketing strategies.
Timing :technology and user readiness
available technologies and the readiness of consumers to utilise the innovation also has a quality improvement on te success of the innovation
if consumers are not yet ready to adopt a new technology, or do not see its value to their life, the innovation will similarly fail.
How to get the timing right
Do market research
Build on existing successes
Exploit market share currently held by a business
Use maturity phase profits to fund new innovation
Forecast macroeconomic trends and indicators
use this in your questions response
overall message of timing
the success of an innovation can depend as much on the timing of its development and release to the market, as it is dependent on the quality innovation itself. Without proper timing, a business can experience failure in the market.
