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Risk of innovation

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A company owner wants to introduct a new and innovative product for consumers. Months into the project, the owner contacted the consultant and mentioned that he was worried about the amount of risk involved in trying to introduce such an innovative consumer product with his current organization. He was worried that the project was oriented too strongly
toward R&D and did not consider related business problems in enough depth.Owner suggested that the consultant modify the existing project to include the introduction of a "me-too" consumer product before IMSCO's new product was defined and tested. Owner thought that some experience with a "me-too" product would provide IMSCO management with valuable experience and would improve later performance with the new product. He allowed the R&D portion of the project to continue concurrently, but the "me-too" phase would have top priority as far as resources were concerned.

The consultant said she would think about it and contact him next week.

Question: : If you were the consultant, what would you recommend to the owner? Would you continue the relationship?

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This explanation provides you a comprehensive argument relating to risk of innovation.

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I will dissuade the owner from going in for a 'me too' product for gaining experience for launching an innovative product.
By launching a 'me too' product, IMSCO will get experience for ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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