When to gamble, when to fold

In the innovation stakes, being first to market won’t necessarily win you the race. Wharton researcher Scott Snyder cites spectacular cases of value destruction from backing the wrong horse, Motorola among them. And colleague Karl Ulrich points out that apparent trailblazers like Apple aren’t driven to be ‘first’, demonstrating patience and flexibility in managing their innovation portfolio. In ‘When to gamble – when to fold: Innovation strategies for a new economy’, Wharton researchers discuss different approaches to managing the risk of the new. “Firms are re-evaluating not just how much to spend on research and development, but also how to strike a better balance between long-term, high-risk projects and more incremental efforts,” the article says. “Businesses are trying to focus on initiatives that best leverage the company’s talents and niche in the marketplace, and developing new ways to track trends and come up with strategies for changing course if a particular effort isn’t panning out as expected.”

Leave a Reply

Your email address will not be published. Required fields are marked *