I was captivated by an IBM ad for their SmartCloud® application: “Can you risk less by reinventing more?” The associated copy went on to say, “Three out of four new products never make it to market, which makes some businesses shy away from being innovative. Smarter enterprises are making trial and error a strength of their development process.”
I like to think of “trial and error” as a learning process – part of agile business development. “Trial and error” in itself needs bounding and depending where in the innovation “t and e” occurs, there is room for the application of various decision analysis tools to assess the impact of technical, economic and other uncertainties on successful development and launch. Given that three out of four new products never make it to market, it is essential that a firm develop and manage a portfolio of innovative products to improve the success ratio.
Yes, you can reduce risk by reinventing more! But, make sure you have a good evaluation process in place. Learn as you go. Add resources at critical “proof points” to accelerate value or kill losers early to fund more promising projects.
Check out this blog post Innovation Is Inherently Risky.