Innovation Market Dynamics
Getting from identifying an innovation opportunity to having a disruptive innovation concept validated by the market takes approximately six months. That raises the question: Why does it take three years on average to see significant market success and 5 to 10 years to reach its full potential? It isn’t the time to develop and build the solution. It is the time the market takes to fully accept a new and breakthrough solution. The ratio between highly successful companies and average players in the same market is about 20/80, meaning 20% of the top companies control 80% of the market volume. The top 20% are the only buyers, that are early adopters of innovative solutions. It takes years for the others to follow. And that ratio is no different whether it’s consumers or businesses.
Requesting an ROI from an innovation project within two or three years is killing a project with 100% certainty.
One of the wide spread issues in enterprise innovation management is the lack of market integration, meaning working with customers, business partner, and suppliers on an innovation project. The answer to the question: Who do you innovate for, should be indicative for the audience who you want to be part of the innovation effort. What goes without saying in the startup world, integration of customers. For them it is incomparable harder because at ground zero, they don’t have any. An enterprise on the other side is loaded with thousands or millions of customers. Organizational structures, fears, uncertainties, and more seem to be huge barriers.
However once executives formed the Meta Strategy and posted the Executive Innovation Mandate it can be assumed that access to customers is no longer an issue. Why is it so important anyway?
Your target audience who you want to innovate for is the one who has unsolved problems. Your best source for Innovation Opportunities. A few of them has dreams that go beyond todays issues, they are extremely helpful. Early adopter customers are eager to be on the forefront of things and more than happy to help. Those early adopters will also be your first advocates and maybe your first customers. Many reason to reach out to them.