Talking Points
- Reasons for Business Failure
- Effect on companies due to lack of innovation
- Seven Steps to make innovation Sandbox
In today’s world many big company are failing overnight and new company are overtaking them. The biggest reason for this is “Innovation” those company who didn’t pivot their strategy according to technology they will not sustain themselves. Companies think that their growth is going on. then why they have to take extra pressure on innovation that can use their resources, money and most important time and after that if it fails then what happen. Firstly, entrepreneur have to understand innovation always move your company to ideal position so they have always ready to take appropriate action according to technology. During innovation people have mostly two mentalities:
Natural inventors like: these type of people never fear about innovation goes wrong or right their main aim to use innovation in companies.
Ambitious investors like: These type of people only think about how they will use innovation and use this to get promotion and see towards senior management.
Company have to always think like “natural inventors” and have to select some people who have these type of personality.
Look at the example of when company stops believing in innovation:
Sad decline of Hewlett-Packard provides a cautionary tales. In 1990 company worth was $9 billion. Then after decade of invention, in 1991, HP launched “Deskjet 500C”, the world’s first affordable color printer.IN 1993 launched “OmniBook”one of first “super portable” laptops. Next year they launched “Office jet” the world’s first all in one printer/fax/copier. This relentless innovation in product make company worth $135 billion by mid-2000.in 2001 company launched HP services, a glorified consulting and support stop and also come with new branding campaign around the imperative to “Invent” it stopped inventing things. In 2002 HP merged with Compaq because they didn’t know what else to do. By 2005 the company’s market cap plunged to $70 billion roughly half of what they had at time 5 years earlier.
Why these sad decline happened to HP company?
This happened because of fighting off two people mentality first person Tom Perkins chief engineer who came to HP in 1963 to run company research division at the personal request of Bill Hewlett and Dave Packard who took company to worth of $135 billion because of his natural inventor mentality. He always believes in innovation to make company more sustainable the other side Chairwoman Patricia Dunn who believe now company have to stop innovation and work as night watchman and sell their existed product. Board of directors choose the path what the Patricia Dunn said. Because of that “HP” merged with “Compaq” and their worth reached to half.
So company have to always see toward innovation to make their company sustainable. They have to select natural inventor-type people and make that team work in small batches so that they can operate more efficiently.
So here are seven steps to make innovation Sandbox:
- Firstly create a team who can create split-test experiment that affects only the sandboxed parts of the product or service (For a multi-part product) or only certain customer segment (for a new product).
- Only team must see the whole experiment from end to end.
- No any experiment will work for longer time it has to complete on the given time limit.
- No experiment can affect more than a specified numbers of customers.
- Ever experiment have to evaluate on the basis of single standard report of five to ten actionable metrics.
6.Every team who work and every product that is built use the same metrics to evaluate the success.
7.Any team who create the experiment must have to monitor the metrics and customer reaction while the experiment is going on and abort it if something catastrophic happens.
In this steps always try to make innovation sandbox small and there is no confusion of work in engineers and managers, both have to handle all situation equally at the same time. During innovation company have to think that they will not interfere the innovating team and never ever make pressure to make innovation must have to success, because nobody can predict success and failure it depends upon customer and market. So be always ready to use innovation technique in company without any regret.