One of the biggest reasons it is hard to invest in MCIs is that investments in MCIs are always in competition with investments in sustaining and efficiency innovations. Sustaining innovations improve existing products on the market by adding features that appeal to some of the most demanding customers. Examples of sustaining innovations are improvements made in the latest version of the iPhone or Samsung smartphones versus previous versions. Those innovations, while important, typically have marginal effects on a company’s and an economy’s long-term viability.
Efficiency innovations, as the name implies, improve the efficiency of a company’s operations. Sometimes it involves leveraging technology that enables the company to produce more products with less staff.
With efficiency and sustaining innovations, the markets are typically defined thereby making targeting these markets more comfortable for investors and entrepreneurs and making metric for success easier to develop. The markets for MCIs are not defined so metrics for success or failure are difficult to develop.
Sustaining and efficiency innovations are important but they do not have the kind of impact on job creation, economic development, and investor returns as MCIs. For example, before Henry Ford democratized automobiles, there were more than 1,000 automobile manufacturers in the United States. Most of them focused on sustaining and efficiency innovations that were targeted at the richest members of society and as such, had limited impact on the U.S economy when compared to Ford Motor Company.
*Payback period depends on varying factors including the complexity of the product and regulatory environment. The main message is that MCIs typically take longer to come to fruition.
At the forthcoming South West Regional E-Commerce Summit & Expo from Monday 23rd - Wednesday 25th March, 2020 at NuStreams Conference & Culture Centre. There will be over 30 speakers delivering 40+ hours of content across 24+ sessions. Delegates will have an unprecedented opportunity to hear exclusive, brand-new content from speakers that will be addressing the power of market-creating innovation, understanding the job your product or service is hired to do & how innovation increases the odds of success. – Many for the very ﬁrst time!
Furthermore at the summit you will learn about the latest technologies, trends and business models and interact with the ecosystem to embrace innovation.
We are pleased to offer attendance scholarships for those in need of ﬁnancial assistance to attend the 2020 Innovation Kitchen.
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To read the full write-up go to: https://innovationkitchen.com.ng/2020/02/12/making-case-market-creating-innovations-look-ford-model-t.html?fbclid=IwAR2Vn_ZncRaos7Q35MSoA4-XnlAMXUR_b7EXSWWAfk94rSyBOfvloKH1Hfk
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