Being Risky

Oliver from Eddielogic looks at the risks of innovation. He believes: "A company that searches for new ways, processes and types of organization is confronted frequently with the risk to land in a dead end. Another disadvantages of a “we are innovators”-approach is the need to review strategy more often"

There are five typical disadvantages:

• The business model doesn't create a competitive advantage.
• When innovation becomes the standard then the followers adopt the "standard solution" and the innovator loses its edge
• A follower can learn from an innovators mistakes and get to market quicker
• The innovator overestimates his innovation power
• A great product doesn't necessarily mean it will be adopted by the market, or maybe it doesn't fit the customers needs.