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7/21/2008

Why is Innovation so Difficult?

Innovation is a wonderful concept. We as a general society thrive upon it; we are always striving for the latest and greatest thing. Technology as a whole is typically the driving force for almost everything we do, everything we see, and everything we are. It seems rather logical that with the rapidly growing popularity of mobile phones, the technology would keep up.

So why, then, are cell phones so far behind on innovation?

Mobile phone technology is definitely progressing. But not very fast. This doesn't make sense to me because cell phone popularity is growing leaps and bounds. Almost everyone has a cell phone now, and many people have replaced their home phones with a cell phone. I, for one, do not have a home phone. What's the point when both my wife and I have our own personal cell?

As such a popular item, cell phones have become more of a need than a want. With so many people using one, it would only be logical to start using the phone for all our digital needs. Like I said before, this is happening but at a slow pace.

Innovation = Success

Frankly, in the last 3 years the only real innovation has been brought about by the iPhones. Plenty of cool phones have come out, but nothing groundbreaking. Every cell phone manufacturer is trying to come out with an "iPhone killer" but the problem is that almost all of them are copying the iPhone interface to some degree. Some phones will perform better than the iPhone in certain features, but they are the same exact types of features. Nothing new, nothing mind-boggling. Just improving, perhaps, what's already been done.

Before the iPhone, the last big trend-setting phone that came out was the Motorola RAZR V3. This was innovation at its best! Nearly four years later, we take a look at the RAZR and think "wow...that was a piece of junk." But at the time it was the coolest new device to have, and its innovative look and feel is what made it so popular.

This is what's weird to me, though...innovation = popular. The RAZR has sold over 50 million units during its tenure. The iPhone 3G sold a million units during the first weekend alone! Every store selling the iPhone had people camping out for days in order to be the first in line. Doesn't it pay to innovate? Is it THAT hard to come up with a fresh idea that everyone wants to copy?

Status Quo

A large part of the market still doesn't care about the latest and greatest gadget, though. I believe the reason is that with the requirement of 2 year contracts, customers get as basic a phone as possible, get used to it for those 2 years, and then don't want to bother with the hassle of learning a new phone with new cool features. They've adjusted to life without these features on their phones, so they don't know what they're missing out on. They're happy with the status quo.

Why Innovation is Scarce

My belief is that it's too difficult and too draining on resources to come out with innovative stuff. The risk far outweighs the reward in their eyes. It involves years of R&D, several prototypes, surveys and focus groups, and millions of dollars in marketing on a device that may or may not be successful. If people don't like it, the reviews are bad, the device flops, and millions upon millions of dollars have been wasted.

Apple scored on the iPhone because it knew the reward would definitely outweigh the risk. The business is structured in such a way that no matter what, millions of devices will be sold simply because it is made by that company. So Apple was willing to take extra time to come out with a fresh OS with all the cool innovative features to make it even more desirable to those who are not Apple fanboys.

Apple also knew the competition to this device would be severe, thus the iPhone essentially would serve as a launching pad for further innovation. Sadly, we haven't seen any other creative genius come as a result...yet.

Motorola's RAZR came out at a period in time that customers yearned for the thinnest and smallest device, with a cool futuristic look. No prior phone had been as thin as the RAZR. I admit, the first time I saw it in person the "wow" factor definitely made a difference. I immediately wanted one. At the time, everybody felt exactly the same way. It only died down when EVERYONE had one. Every other phone maker came out with thinner phones and tried to corner the market. That's when the RAZR slipped out of the limelight. Motorola put so much into the landmark phone, the frustrations came when it couldn't duplicate its prior success. Now the company is struggling and is looking to spin off the wireless division just to survive.

The key in innovation is finding something everyone wants to copy. It shows that you have truly come up with something unique and serves a huge need in the market.

Will it be another 3 years before we see another truly innovative phone come out? We certainly hope not. Everyone tries, but very few actually succeed. The key is in finding something that serves the interest of the target demographic and presents it in a unique and creative fashion. With enough phone manufacturers out there, it shouldn't be that difficult. It just goes to show that there are a lot more followers than leaders in this industry.

Let me know your thoughts.

2 comments:

Matt said...

Quick question for you.

Haven't we historically been behind our international friends in cell phone tech for a long time? What do they have out right now that should be on our horizon?

Brad Molen said...

Yes, the US seems to be largely ignored when it comes to the newest and coolest features. I think that most phone makers thought we weren't as willing to buy them as they are in Europe and Asia.

But that may change with the popularity of the iPhones.

Thing is, there really aren't that many new cool features out there that are truly "innovative" at the moment; 5+ mp cameras, FM transmitters included in the phone (that's actually pretty neat), etc. But nothing that truly stands out.

One feature supposedly coming out near the end of the year is a built-in pico projector, thus allowing you to play movies from your phone onto the wall.

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