What is the first step for getting an innovative product approved for market launch? To get the management  to green flag the project. So before the new innovative product hits the store shelfes, you have to sell the idea to the management - the company’s key stakeholders.

Some years ago I worked for a company with high innovation ambitions. The company wanted to move from selling simple high quality products to selling innovative market leading quality products. This transformation is not done over night, and in my opinion the management team was not ready to make the big decisions. Therefore the transformation never succeeded.

The management team wanted to go through with the transformation, but would they approve the new projects, which would take the company in that direction? Sadly, no. Betting on the sure thing - what the company has done successfully for the past 30 years - won every time. Why being so nervous about going in a new direction? Well, this could be some of the reasons:

• Development cost (new technology/methods = expensive)
• Development time (no track record of time consumption)
• Warrenty challenges (can existing aftersale service handle it?)
• Customer base (need to address new customers?)
• Market perception (how will the market react?)

Moving into new markets is associated with risks, and who are the initial stakeholders? The company’s management! The management team will always look hard at the opportunities and the risks because a failed product strategy can have serious economic consequences.

Hands in the pockets - not always the solution
Okay, so moving into new markets and new product areas can be risky business. But does that mean that you (the company) are safe by keeping  doing what you’ve always done? No! Maybe the current product strategy has worked for many years, but new technology, new competitors, new market segments etc. are changing the market rapidly. So just in order to keep the current market position most companies has to work hard. Sometimes this hard work includes taking chances and going in new directions. Just be aware of the risks and that something is always on stake. For someone. So think about the stakeholders and be prepared to answer their critical questions when you make your next fantastic concept proposal.