Five Reasons Why Innovation Decisions Succeed 2.5X More Often At Top Companies

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I am co-founder and Chief Product Officer of the Cloverpop decision intelligence platform and creator of the popular Udemy course How To Make Better, Faster Decisions At Work.

Innovation is also notoriously tricky. It’s difficult to identify customer needs, design and launch products and predict how competitors will react. It’s even difficult to find data about how often innovations succeed. While the late Harvard Business School innovation guru Clayton Christensen is widely quoted as saying that 95 percent of new products fail, it turns out that

The comparison is stark. According to the survey analysis, innovation decisions are 2.5 times more likely to fail than typical business decisions, with outcomes missing expectations 50 percent of the time. That failure rate aligns with the previously mentioned research findings about innovation success rates, which is unsurprising since decision-making effectiveness isMore importantly, the survey results show that successes and failures are not evenly distributed.

Innovation decisions demand more empowerment, motivation and discipline, given the relatively high likelihood of failure innovators face. Highly successful companies disproportionately foster these traits.The combination of higher decision failure rates and longer timelines involved in innovation cycles places more pressure on organizational alignment.

 

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