Innovation, it’s a term that is often thrown around in the corporate landscape like confetti at a New Year’s Eve party. From boardrooms to business magazines, everyone sings the praises of innovation, urging companies to invest heavily in it. But let’s take a moment to ponder the unthinkable – why not to invest in innovation?
Before you dismiss this as absurd, remember, this is not an outright dismissal of innovation. Instead, it’s an alternate perspective to highlight the sheer importance and value of innovation in today’s competitive business environment.
Let’s dig into the reasons you might consider if you were to decide not to invest in innovation.
Innovation Is Risky
Indeed, innovation is fraught with risks. When you innovate, you venture into the unknown, where there are no guarantees of success. It’s like stepping off the edge of a map onto uncharted territory. You might discover a new continent or, on the flip side, you could end up lost at sea.
If you don’t invest in innovation, you won’t have to face these risks. You can stick to the tried and tested methods, the familiar and the predictable. But remember, while the risks are high, the rewards of successful innovation are even higher. It can propel your company to new heights, give you a competitive edge, and open up new revenue streams.
It’s quite likely that you haven’t given much thought to the profound impact that the Internet, smartphone or cars have had on our lives. But, remember, way before everything like that, someone invented fire which was incredibly risky but enormously rewarding.
Innovation Requires Resource Allocation
Investing in innovation means allocating resources — time, manpower, and, most importantly, money. These resources could be used elsewhere in the business, perhaps in areas that are guaranteed to bring in immediate returns.
However, by not investing in innovation, you may be saving resources in the short term, but what about the long term? Innovation, though resource-intensive, is an investment in the future of your business. It is what ensures your business stays relevant and continues to grow in a rapidly changing world.
Innovation Can Lead to Failure
There’s no sugarcoating it; not all innovative ideas are successful. In fact, most of them fail. And failure can be disheartening. It can dampen spirits and create a sense of apprehension.
But, failure is not the end. It’s a stepping stone towards success. It provides valuable lessons and insights that can help refine your innovation process. Without the risk of failure, there would be no opportunities for learning and growth.
New Coke: In 1985, Coca-Cola decided to change its century-old secret recipe to compete better with Pepsi. The outcome was disastrous, with a public outcry for the return of the old flavor. The company had to revert to the original recipe just 79 days later.
Google Glass: Launched with much fanfare in 2013, Google Glass was touted as the next big thing in wearable technology. However, privacy concerns, high price, and lack of practical use cases led to its downfall. The product was discontinued in 2015.
Microsoft Zune: Microsoft’s attempt to compete with Apple’s iPod, Zune was launched in 2006. It failed to gain a significant market share and was discontinued in 2011.
Amazon Fire Phone: Released in 2014, Amazon’s Fire Phone aimed to compete with Android and Apple smartphones. However, it didn’t offer anything substantially different or better than its competitors. Amazon discontinued the Fire Phone just a year after its launch.
Innovation May Cause Discomfort
Change can be uncomfortable, and innovation brings change. It shakes up routines, disrupts established norms, and requires people to step out of their comfort zones. This can cause unease and resistance among employees.
Yet, this discomfort is a sign of growth. It is a sign that your company is evolving, adapting, and moving forward. Stagnation, on the other hand, can lead to complacency, which can be detrimental to your business in the long run.
Biggest risk is not taking risk at all.
The question “Why not to invest in innovation?” is not intended to discourage you from embracing innovation. Quite the contrary. By highlighting the reasons not to invest in innovation, we hope to underscore the value and importance of innovation consultancy in business.
Innovation, though fraught with risks and challenges, is a vital component of long-term business success. It requires courage, resilience, and a willingness to embrace the unknown. And that’s where innovation management consultancy like Lusidea come in. We help you navigate the complexities and uncertainties of innovation, turning potential risks into rewarding opportunities.
So, if you’re ready to step off the edge of the map and embark on an exciting journey of innovation, Lusidea is here to guide you every step of the way. Because the future belongs to those who dare to innovate.