Free Essay

Innovation Failure

In: Business and Management

Submitted By ShyamJithu
Words 388
Pages 2
Innovation Failure

Eastman Kodak. For nearly a century, no company commercialized the camera as successfully as Kodak, whose breakthroughs included the Brownie camera in 1900, Kodachrome color film, the handheld movie camera, and the easy-load Instamatic camera. But Kodak's storied run began to end with the advent of digital photography and all the printers, software, file sharing, and third-party apps that Kodak has mostly missed out on. Since the late 1980s, Kodak has tried to expand into pharmaceuticals, memory chips, healthcare imaging, document management, and many other fields, but the magic has never returned. Its stock price is now about 96 percent below the peak it hit in 1997.

Sony. Not long ago, the Walkman was as ubiquitous as the iPod is today, and Sony dominated the market for TVs, cameras, video recorders, and many other consumer electronics. But as Sony became a huge conglomerate with film and music divisions, it lost leadership in many of its core product lines. What tripped up Sony and some of its competitors was the move from hardware to software, which put the emphasis on the brains of the device rather than the circuitry. As a result, faster-moving competitors like LG, Samsung, Vizio, Apple, and the various makers of cell phones—which of course come with cameras these days—have outpaced this old-school innovator. Yahoo. When Web search and aggregation were still virgin territory, the pioneering Yahoo tried to charge for services like E-mail and file sharing, while upstart Google offered everything for free. Customers flocked to Google, which surged to a commanding lead in search that it still holds. Yahoo still grew into a huge Web portal, with strong sports, financial, and news coverage that generates billions in advertising revenue, but it also drifted into job-hunting services, video streaming, original entertainment, and other ventures it has since sold or folded. And Yahoo's snub of a $45 billion buyout offer from Microsoft in 2008 now looks like a huge gaffe, since Yahoo's market value has fallen to a scant $19 billion or so. CEO Carol Bartz arrived in 2009 with a mandate to clarify the company's focus and amp up profitability. One of her first moves: a partnership with old suitor Microsoft meant to increase revenue for both firms without the tension of a buyout.

Similar Documents

Premium Essay

Paper Review of "Architectural Innovation: the Reconfiguration of Existing Product Technologies and the Failure of Established Firms"

...The paper introduces the category of “architectural innovation” on the basis that seemingly minor changes to technology which may earlier be classified as an incremental innovation can have competitive consequences of a radical one. The key concept is the distinction between component knowledge and architectural knowledge. The paper argues that firms concentrate on refining components within a stable architecture established by a dominant design, and consequently, their “information-processing capabilities” are shaped by the existing architecture. While building upon component knowledge, their architectural knowledge is outmoded and made obsolete by architectural innovations. Their resulting inability to identify or understand new interactions between components has serious competitive consequences. The conceptual framework of the paper is clear and straightforward. The main argument is advanced in a logical manner, and supporting premises (such as the way organizations manage knowledge) are supported by prior literature. Within the boundaries of the paper’s assumptions, the argument is persuasive. Furthermore, the application to the photolithographic alignment (PA) equipment industry justifies the model. The trends in the industry suggest the conceptual framework is largely accurate. Nonetheless, the assumptions made limit the usefulness of the concept....

Words: 493 - Pages: 2

Free Essay

The Growth Mind-Set

...As mentioned throughout the book, experimental innovators are not rigid in pursuit of their first ideas and preserve through many failures and move on quickly. In approaching their challenging goals, they accept the fact that they will face many unpredictable obstacles, risks and even breakdowns which they have to cope with and overcome without considerable emotional impacts. These characteristics of experimental innovators are results of having a growth mind-set. People with this mind-set are always willing to grow hence more open to accept new challenges and risks. They do not seek validation of others after every performance, and do not believe that their failures reflect their capabilities and do not get disappointed by them. As a result, they do not stop trying new things until they gain major accomplishments. On the other hand, people with fixed mind-sets avoid taking new challenges because they are afraid of the possible failures. Any negative comment, failure, or bad performance tends to destroy their self-image; consequently, their main concern becomes seeking validation of others by trying to look smart and successful. They place so much emphasis on minimizing risks and errors that they keep doing things they are already good at instead of trying new things. As a result, they plateau early and achieve less than their full potential. We are programmed at an early age to think that failure is bad....

Words: 974 - Pages: 4

Premium Essay

Manhattan

...In combination, these three studies show there is a very real role for the board in the stewardship of innovation. This role changes with circumstances and the sector, and, like most aspects of governance, is best achieved by working as a team with the executive of the organisation. ” In combination, these three studies show there is a very real role for the board in the stewardship of innovation.” 3...

Words: 4205 - Pages: 17

Free Essay

The Wide Lens

...THE WIDE LENS - What successful innovators see that other miss Introduction The discussion topic is the difference between great innovations that succeed and great innovations that fail. In particular, it is worth noting that company’s success depends not just on the ability to execute its own promises but also on whether visible or hidden partners deliver on their promises too. In other words, company’s success depends not just on its own efforts but also on the ability, willingness, and likelihood that the partners that make up its innovation ecosystem succeed as well. Thus, a new perspective must be adopted, a wide lens, with which to assess a company strategy using a new set of tools and frameworks that will expose a company hidden sources of dependence. The Innovation Behind Spot and Avoidable Failure Although great execution is a necessary condition for success, it is not enough. Indeed, while the execution focus draws attention to important aspects of a company strategy (developing customer insight, building core competencies, and beating the competition), it creates a blind spot that hides key dependencies that are equally important in determining success and failure....

Words: 3328 - Pages: 14

Free Essay

Bank of America

...Introduction / Definitions Description of the case study “Bank of America (A)” * The case study describes how Bank of America is creating a system for product and service innovation in its retail banking business. Emphasis is placed on the role of experimentation in some two-dozen real-life "laboratories" that serve as fully operating banking branches and as sites for testing new ideas and concepts. Focuses on: 1) 2) 3) how learning from experimentation can be maximized; incentive and reward systems that motivate employees to experiment in "life" environments; the challenges of managing innovation in an industry that eschews risks, failure, and change. *Reference: http://harvardbusinessonline.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=603022 Harvard Case Study: Bank of America 1. Introduction / Definitions Process: which activities are to be taken, in which order* Organization: who (person, team or department) is involved (who is responsible for what)?* Management: how to get things done (how to keep the process running effectively)?* Culture: which habits and traits support the process and the people involved (which values are necessary to be successful)?* *Reference: www.wpelz.de/d_index.html, Guide for the case study "Bank of America" 2 Harvard Case Study: Bank of America 1. Introduction / Definitions Innovation: Innovation is...

Words: 1164 - Pages: 5

Free Essay

Case Analysis of Bank of America: Mobile Banking

...Introduction / Definitions Description of the case study “Bank of America (A)” * The case study describes how Bank of America is creating a system for product and service innovation in its retail banking business. Emphasis is placed on the role of experimentation in some two-dozen real-life "laboratories" that serve as fully operating banking branches and as sites for testing new ideas and concepts. Focuses on: 1) how learning from experimentation can be maximized; 2) incentive and reward systems that motivate employees to experiment in "life" environments; 3) the challenges of managing innovation in an industry that eschews risks, failure, and change. *Reference: http://harvardbusinessonline.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=603022 Harvard Case Study: Bank of America 1. Introduction / Definitions Process: which activities are to be taken, in which order* Organization: who (person, team or department) is involved (who is responsible for what)?* Management: how to get things done (how to keep the process running effectively)?* Culture: which habits and traits support the process and the people involved (which values are necessary to be successful)?* *Reference: www.wpelz.de/d_index.html, Guide for the case study "Bank of America" 2 Harvard Case...

Words: 1164 - Pages: 5

Free Essay

Management

...Is it good to foster a culture that reinforces failure? (Chapter 8) The fact that failure is something that most businesses have a difficult time accepting, does not mean it is not a blessing in disguise. In this reading selection, the reader can understand more thoroughly the importance of accepting failure in a product’s life cycle and its silver lining for companies. It takes a very skilled leader-manager to recognize the benefits of failure. Whether a failure costs a company almost everything it has, or it is done inexpensively, it is one of the most vital components of a company’s growth. To be innovative in a world where products become obsolete in almost the same moment they are invented, failure needs to be looked at through the perspective of, “How can we benefit from this not working?” Many companies take even more risk by presenting the fact that failure with new products is likely when presenting to potential investors. It is extremely important to do so because many will not take that concept into consideration when analyzing a new product, it may even be overlooked altogether. Some may take the viewpoint that speaking of failure before a new project is initiated would be detrimental to the product, and furthermore, the company’s success. However, failure needs to be recognized as part of the risk-taking, innovation process. It allows a company to understand its customers and their needs on a much greater scale....

Words: 1901 - Pages: 8

Premium Essay

Apple Computer Successes & Failures

...I’ve taken events from an article I found called, “30 pivotal moments in Apple’s history” (Linzmayer, 2006) and segmented what they feel to be the 30 most pivotal moments in Apples history into what I feel to be successes or failures. So lets start with failures. I will start their failures in 1983 with when they named John Sculley as their CEO....

Words: 1177 - Pages: 5

Premium Essay

Innovation, New Product Development and Why Do New Products Fail?

...Innovation: Product innovation is the creation and subsequent introduction of a good or service that is either new, or improved on previous goods or services. Product innovation is defined as: the development of new products, changes in design of established products, or use of new materials or components in the manufacture of established products[1] Thus product innovation can be divided into two categories of innovation: development of new products, and improvement of existing products. Systemmatic Innovation of Products includes: * Technology  strategy * Design thinking skills * Customer needs analysis * Systematic creativity methods * Market and pricing strategy * Design for environmental sustainability * Design of services * Capturing value from innovation * Development process design * Product and service leadership * R&D organization and teams * Managing complex technical projects * The future of design process and culture The development and market introduction of a new, redesigned or substantially improved good or service. might include a new product's invention; technical specification and quality improvements made to a product; or the inclusion of newcomponents, materials or desirable functions into an existing product. Meaning of New Product Development: Product development is a broad field of endeavor dealing with the design, creation, and marketing of new products....

Words: 3413 - Pages: 14

Premium Essay

Eco/365

...Is it possible that a government’s solution to a market failure would worsen the failure? Explain your answer. Externality is defined as an effect of a decision on a third party not taken into account by the decision maker. There are two types of externalities being positive and negative. Second hand smoke would be a negative externality. The smoker does not take into account the smoke emitted from their cigarette. Education would be considered a positive externality. When an individual is educated, their employer benefits from your expertise on the matter that was studied. It also helps to employ teachers with jobs in order to educate us. Innovation is also a positive externality. The effects of innovation helps businesses become more efficient, in respects to technological innovation. Innovation affects market outcome. With Apple's determination of constant innovation, consumers are chomping at the bit for the next generation "iProduct." Each product surpasses the previous with updated features. The government has no role in addressing the sale of "iProducts," and their externalities. But if there were a market failure for these products, the government could intervene on their behalf. The government could implement a tax incentive program for consumers or businesses to purchase Apple products based on the green movement. For example, at my job, we have to physically write patient care reports....

Words: 661 - Pages: 3

Premium Essay

Pepsico

...Sustainable Innovation as a Corporate Strategy M. Rashid Khan and Mohammed Al-Ansari Intellectual Assets Management, Saudi Aramco, Dhahran 31311, Saudi Arabia. 1. Introduction Something amazing happened in the corporate world. The idea to innovate has captured our imagination. As an example, in 1996, Lucent Technologies’ award winning “Creativity Center” was industries state-of-the art that provided leadership, passion, outstanding marketing, training and communication. Similarly, Enron was the industry “darling” for its innovation program; Enron’s major intranet program “eThink” was recognized with awards for excellence in communication. Yet four years later Enron went bankrupt, the programs of many companies were in ruins joining the ranks of Polaroid, DuPont, Reynolds, Ford and many others. What happened? We watched many companies failed while other organizations remained successful. What made the difference in the innovation process? While many companies failed, others were successful adding value fostering innovation and creativity. Many companies such as 3M, IBM, Disney, Microsoft, and Sony continued to innovate. This paper attempts to explain the reasons behind the failures and successes. 2. What is Innovation? Innovation is discovering new ways of creating value. Innovation serves as the lifeblood of many organizations whose survival and growth depend on developing new technology, products and services....

Words: 2180 - Pages: 9

Premium Essay

Devry

...One secret weapon most companies have discovered as a top priority today is innovation. In the world we reside in today, it’s a must that innovation is an important key to an organization’s overall business strategy. One company in particular, Apple, took the world by storm and used innovation and vision to turn the company failures into an overload of success. In this paper we will discuss some of Apple’s biggest successes and failures, how much of Apple’s success can be linked directly back to its culture, and the actions of Apple and how they apply to our TCO’s. To give some background of the company history, Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976, to develop and sell personal computers. Jobs and Wozniak shared Job’s vision to build computers that average people could use and enjoy. Because of amid unsuccessful product launches, a power struggle ensued within the company and led to the resignation of Steve jobs in 1985. It was one year later that Steve's return to Apple was set into motion. So what were some of Apple's biggest successes and failures during the return of Steve Jobs? One of the first inventions, The Apple II, became the most popular successful personal computer of its time (Gallo, 2013). The introduction of the Apple II computer launched what was to be a wave of new computers aimed at the home and small-business markets....

Words: 1081 - Pages: 5

Free Essay

How Failure Breeds Success

...How Failure Breeds Success Even heard of Choglit? How about OK Soda or Surge? Long after ‘New Coke’ became nearly synonymous with innovation failure, these products joined Coca-Cola Co.’s graveyard of beverage busts. Given that history, failure hardly seems like a subject CEO E, Neville Isdell would want to trot out in front of investors. But Isdell did just that, deliberately airing the topic at Coke’s annual meeting in April. “You will see some failures,” he told the crowd. “As we take more risks, this is something we must accept as part of the regeneration process.” Warning Coke investors that the company might experience some flops is a little like warning Atlantans they might experience afternoon thunderstorms in July. But Isdell thinks it’s vital. He wants Coke to take bigger risks, and to do the, he knows he needs to convince employees and shareholders that he will tolerate the failures that will inevitably result. That’s the only way to change Coke’s traditionally risk averse culture. And given the importance of this goal, there’s no podium too big for sending the signal. While few CEOs are as candid about the potential for failure as Isdell, many are wrestling with the same problem, trying to get their organizations to cozy up to the risk-taking that innovation requires. A warning: it’s not going to be an easy shift. After years of cost-cutting initiatives and growing job insecurity, most employees don’t exactly feel like putting themselves on the line....

Words: 1108 - Pages: 5

Free Essay

Oi 361

...Numerous times creative thinkers can come across failure...

Words: 354 - Pages: 2

Premium Essay

Market for R&D Failures

...Mike Rondesko, KaChun Fung, Daniel Lozano, Jose Romero Professor Pe’er Final Essay 18 December 2012 Market for Trading R&D failures Advancing ones knowledge based on past failures is vital towards furthering intellectual development. Without understanding as to why something doesn’t work, it would be very unlikely that an efficient goal can be reached. This same concept applies to research and development projects in the modern day industry. Using the knowledge of recent failures is what drives progress and technological advancements. However, discovering failures is insensitive to time, resources, and capital in an ever changing world of product innovation. If knowledge of research and development failures were known to firms prior towards their attempt, product growth would be quicker, less risky and more profitable. A market that traded intellectual failures would be beneficial towards the firm and its stakeholders while improving market efficiency. Since understanding failures is so important towards the progression and advancement of a product, there should be a market in which firms can trade R&D failures. However, this market does not exist. Yet, if we can argue that there are advantages for firms to possess more intellectual knowledge, than this market can have hypothetical value. One of the main reasons why there is currently no market for R&D trading is because it can be advantageous towards a firm’s competition even at a cost....

Words: 3313 - Pages: 14