As businesses continue to undergo massive changes due to technological advancements and increased competition, innovation has become an essential strategy to remain relevant and competitive. Discontinuous innovation has emerged as a viable solution for companies to create new opportunities and stay ahead of their competitors. However, with any innovation comes some level of risk, and discontinuous innovation is no exception. In this article, we will explore two potential risks that businesses face when they embark on a journey of discontinuous innovation.
The Uncertainty of Market Acceptance
Discontinuous innovation carries with it the possibility of market rejection. This is especially true when the innovation involves a completely new idea. In such cases, there might be no market precedents or customer knowledge to rely on, so the business has to rely on predictions and assumptions. Thus, the innovation has a higher chance of failing.
For example, BlackBerry, a device manufacturer that was once the leading player in smartphones, launched a tablet device in 2011, hoping to compete with the likes of Apple’s iPad. However, the device failed to gain traction in the market, and the company ceased production just two years later.
The Cost of Implementation
Another potential risk of discontinuous innovation is the cost of implementation. Such innovations often require significant investments in infrastructure, technology, or workforce training to be successful. This can strain a company’s resources, especially if the innovation doesn’t produce the expected level of return on investment.
For instance, Kodak, a photography company, invested heavily in digital cameras in the early 2000s but failed to integrate the innovation and change its corporate culture effectively. As a result, Kodak filed for bankruptcy in 2012.
The Importance of Timely Execution
Discontinuous innovation often requires timely execution, as it has the potential to transform the industry and generate massive market opportunities. However, while the initial idea might be groundbreaking, the value of the innovation decreases with time. Thus, businesses need to act fast to capitalize on the opportunities.
For example, the Finnish company, Nokia, invented a touchscreen technology in the early 2000s, but it took them seven years to release products using the technology. By then, tech giant Apple had released its iPhone, dominating the market. Nokia’s late entry into the market ultimately led to its downfall.
The Need for a Holistic Approach
To mitigate the potential risks of discontinuous innovation, businesses need to adopt a holistic approach. This approach should consider all aspects of innovation, from idea generation to implementation and impact assessment. Holistic innovation enables companies to stay ahead of their competitors and make informed decisions about the risk of a new innovation.
Discontinuous innovation offers businesses the opportunity to create new markets, dominate existing markets, and maximize profitability. However, it’s essential to recognize the risks associated with this type of innovation and take a holistic approach to mitigate those risks. Market acceptance, cost of implementation, timely execution, and a comprehensive approach are critical factors to consider when aiming for success in the competitive world of business. When businesses can successfully manage these risks, they can achieve unparalleled growth and success.
Nick, Founder & CEO of Wiener Squad Media
Nick is the visionary founder and CEO of Wiener Squad Media, based in Orlando, FL, where he passionately supports Republican, Libertarian, and other conservative entrepreneurs in building and growing their businesses through effective website design and digital marketing strategies. With a strong background in marketing, Nick previously ran a successful marketing agency for 15 years that achieved seven-figure revenue before an unfortunate acquisition led to its closure. This experience fueled his resolve to create Wiener Squad Media, driven by a mission to provide outstanding digital marketing services tailored specifically for conservative-owned small businesses.
Holding a Master of Science in Marketing from Hawaii Pacific University (2003), Nick is currently furthering his education with an MBA to enhance his problem-solving skills and ensure that past challenges don’t repeat themselves. He firmly believes in the marathon approach to business growth, prioritizing sustainable practices over quick fixes like investor capital. Committed to employee welfare, Nick maintains a starting wage of $25 per hour for his staff and caps his own salary at $80,000 plus bonuses.
At Wiener Squad Media, our values are based on the Five Pillars of Giving – protecting the First and Second Amendments, Sanctity of Life, supporting our military, veteran, and first responder heroes, and making sure no shelter dog is left behind by finding each one a forever home. At Wiener Squad Media, we are not just about success but also about making a positive impact on society while achieving it.
Outside of work, Nick is an avid political activist who engages in discussions supporting conservative values. He volunteers at local animal shelters, participates in pet adoption events to help find all unwanted dogs a forever home. Committed to nurturing the next generation of entrepreneurs, Nick dedicates time to coaching and mentoring other aspiring conservative business owners, sharing his wealth of knowledge and experience in the industry.
