Innovation or Imitation - Sometimes The Answer Might Surprise You

Much as we laud true innovation, in the real world, the word, "new product" often means "line extension" rather than "new to the world". The reasons are obvious.

"It is estimated that there were over 50,000 new products introduced into the consumer products sector last year, up 77% from 10 years ago. Since the typical store has only 40,000 SKU's, it can be pretty difficult for a consumer products company to succeed today!"

The cost of true innovation can be staggering and the risks inherent in following that path can tip the balance toward business as usual. This is one reason often truly new ideas seem to percolate up from the ranks of entrepreneurs with little to lose and large industries with extensive regulatory protection (i.e. drug companies, etc.)

But, an alternative approach, as discussed in this post, Am I Better Off Being An 'Imitvator' Than An 'Innovaor' ? is to be a speedy second.

"Speed doesn't necessarily mean being first, you can be choose to be a strategic fast follower and there are plenty of advantages to that."

The first mover advantage is often exaggerated or blatantly wrong. In many cases the company that seems to have been first to market actually has followed in the footsteps of innovators with strong product ideas, but inadequate execution.

Since good innovation is often an iterative process, this makes sense. Despite extensive exploration into consumer buying behavior and eliciting of consumer opinions, it is good to remember that... research can be wrong. The history of marketing is littered with research failures, the most famous perhaps being New Coke.

The advantage in being second is in the opportunity to improve. Often the errors made in the product development process are not clear until after the initial launch, when it becomes glaringly obvious that a feature was left out or usability is less than desired.

Similarly errors in marketing execution become obvious only after launch. A great product supported with a lousy marketing plan is doomed to failure. While the first mover struggles to correct those errors a nimble second to the market can move into first place with a sharp and rapid launch.

Peak Products, a local Richmond, British Columbia company that was a fast follower providing low cost, but high quality - product and package design - copies to big box retailers, is a good example. Coming second to the market, but improving upon design and supporting the launch with a strategic sales and marketing plan, Peak Products has now been able to position themselves as an innovator. It has become part of their core business.

A key component of innovation is the ability to think outside of the box. Sometimes that means looking beyond pure innovation and toward improvement. While "me too" products and line extensions abound, finding success by being second requires looking beyond the obvious to what might have been.

In our innovation sessions we pay particular attention to competitive products, possible products and newly launched products. Often a pipeline product has already been introduced by a competitor. That isn't necessarily a deterrent. Rather it could be an opportunity.