Which of these is a challenge of sustaining innovation in hardware? Many seem to agree that the first challenge is providing a product at a reasonable price. The second challenge is getting the product out that can be used by everyone. Thirdly, sustaining innovation in hardware is about making improvements in process and product design to make life easier for the end user.
So, what of those who contend: that the first challenge is to provide a cheaper product? Often such products fail on three accounts. Firstly, consumers in their desire to reduce cost are more likely to select a lower quality device which therefore costs them more in the long term; secondly, existing customers who rely upon existing technologies are unlikely to change to new technology because they perceive that the benefits are already being provided; Lastly, any cost savings is likely to be offset against increased prices so that end users are not actually saving money in the short run.
That leaves us with the third challenge: that of providing a better product or service for existing customers which actually creates a sustainable competitive advantage. There are three questions here. What have been the past few decades’ changes in the industry? Has the level of customer service improved enough to cause an increase in purchasing preference for the product or service?
In answering the second question: the most likely answer is no. The only thing that has changed is the level of service. End users have not found it difficult to acquire and use electronic information. On the contrary, they have found it increasingly easy to get the same information and the same services that were once available only through paper-based systems. It is unlikely that there has been any significant technological change that would make sustaining technology more difficult.
This leads to the third challenge: that of providing a better product or service for future needs. In this regard, I believe that the key to making the challenge of sustaining innovation less challenging is to focus on what customers want today rather than what they may want in the future. That is, it makes more sense to focus on solving problems for end users today, even if those needs may change tomorrow. Here, the key to solving this challenge lies in understanding that most consumers today simply don’t believe that their current problem is solvable and therefore will continue to buy products and services that meet current needs.
On balance: it appears to me that a business can be successful if it adopts at least some of these strategies. The first step is to understand what customers want and how sustaining innovation can help provide a solution. A second important strategy is to focus on providing a faster product or service in response to customer needs. And the third is to focus on meeting customer demand now in order to reduce the likelihood that customers will have to choose between what they need today and what they will need in the future.
By following just a few of these strategies, it may be possible to realize the significant amount of innovation that is necessary to successfully ride the wave of change.