Shoe Enterprises Should Pay Attention To: Four Major Signs Of Innovation Beyond Expectations

One

Innovation is not a free lunch.

In many cases, it will become a zero sum game accompanied by a high opportunity cost.

One of the costs of innovation is the importance of leadership and the time and effort to pursue in the process.

Similarly, the development of a new product will inevitably divert attention from other products.

In addition, managers often underestimate how much money is needed to pform a blueprint into a mainstream product.

The company's financial resources sometimes threaten the survival of the company.

Companies may invest a lot of resources in the development of a few new products.

If you put these resources into the original products, you may generate more profits.

The world famous pencil manufacturer, Germany FABERCASTELL (Hui Baijia) company is a good case to avoid the risk of over expansion.

The quality of the pencil produced by the factory is legendary. When the boss dropped more than 100 pencils from the 30 meter high castle tower, the pencils remained intact.

With confidence in their products, the company leader is confident that there are many market opportunities in his existing main products.

As a result, he plucked up courage and refused the consultant's advice on entering the digital business.

This avoids the consumption of enterprise resources and focuses on the best aspects of the company.

By developing high-end product lines such as "perfect pencil" and "skid proof pencil", he made pencil ordinary goods become a sophisticated tool and status symbol.

2. funds occupied elsewhere

The development of new products may gradually weaken the original very successful products.

When a newly developed product is not as successful as a fragile old product, the company may deny itself that the assets and capabilities that the old product has relied on will be destroyed if the new product has not been proven successful.

For example, when new products are released, new distribution channels are needed.

As a result, enterprises are likely to ruin their prospects by leaving behind old channel partners.

Airwalk, a famous sporting goods company in the United States, began to offer technical stores such as the signature plate skating board to the shopping malls.

In addition, young people who are good at innovation feel that they have gone.

3. increase in complexity

Adding a new product to the company's existing product mix will bring about a doubling of the complexity index.

This cost may exceed the benefits of innovation.

For example, an Internet banking company introduces a new service, and all call center employees, including overseas staff, need training on new products.

The cost is very high.

The new amount of information may result from the fact that the receptionist searches for data on the computer.

4. in addition, customers may be confused and tired of the increasing new functions.

They do not have enough time and interest to surf the Internet to read hundreds of pages of user manuals.

No wonder many non professional users welcome the simplification of functions.

For example, the Sony Corp provides the "one touch" function on the digital camera. After the button is pressed, the basic settings on the camera can be directly photographed in a few seconds after the purchase.