Myth: Constant innovation is the key to success
The truth: the timing of the innovation is more important.
It is a common belief that in order to retain power over customers, one has to be constantly innovative or else one will lose market share to a competitor. While this belief is being put to the test in industries like entertainment, gaming, technology, etc., it is not so for other types of businesses.
In these other industries it is more important to time innovation than to hold onto it incessantly and overshadow other companies. If your business is seeing success from a particular innovation, your focus should be on capitalizing on it and building on it, rather than focusing on the next big project that will make waves across the industry.
If you don't plan on building on a particular innovation, why bother to tackle it in the first place?
Showing others the way is a bit of an exaggeration in business administration!
Therefore, when an innovative company is taking shape, your only focus should be on investing the lion's share of your resources in that company and maximizing that opportunity if you still can; while you still have a monopoly.
You want to set the time for your next major innovation when your radar catches the competition and it's no longer honeymoon time. Innovations should also be inspired by ongoing trends and other industrial developments. Often times, the intelligent use of broader trends and developments to germinate innovation can produce better results than "Over innovation ".
For example, according to a study by Paolo Aversa of F1 racing teams, it was found that automakers who simply adapted their cars to change outperformed vehicles that were too innovative.
However, one truth does not apply to every industry and every market. Therefore, instead of accepting a general understanding, it is better to be aware of market conditions and the contributing factors in order to know when and how often an innovation should be terminated.