Competition is something that I think drives innovation in industries. It is one company pushing another to be the provider that stands out from the rest.
The company that gets the technology out, is seen as the provider of choice and seems to be the winner in the end.
In competition how can you eliminate risks to ensure that you are first to market with a good product?
CGMT/442 Information Systems Risk Management
Competition drives innovation. This is correct. The company that gets the technology out, is seen as the provider of choice and the winner in the end. This statement is debatable. The reason behind this is that there are plenty examples of companies that was first to release a technology only to lose out to other players eventually. In order to reduce such risk we need to understand the pitfalls that may cause the company lose the competitive advantage.
The key to minimizing risk is to understand the market where the product/technology is going to be released. Take an example of mobile operating system. When Google launched Android, did it launch it launched it as a product. On the other hand, products such as Angry Birds game was successful too. However, if we consider the angle of platform, Android is not the first mobile OS for the mainstream. There have been Palm OS, Symbian and others before that. Similarly Angry Birds is not the first aim and shoot game, there were games such as Crush the castle before that. The key is to understand what made the predecessors unsuccessful while these products became successful.
With the same approach we must face the risk management. In order to successfully minimize risk and launch a new product we must consider the following factors.
Time of launch: Often we see products that are innovative and revolutionary. However, the time period of the product is not correct. One of the example is the programming language Objective C. This language has been present for decades but become popular only in the last decade or so. The main purpose of this language today is to create iOS apps for apple devices. In 90s people would not learn this language because of its complexity and other easier alternatives available.
Quality of the product: When a new product is launched, it is often rushed. This means there has not been enough R&D work done on the product quality and performance. This can cause release of low quality products in the market. The rush or haste in product launched is often caused by market competition. Hence it is extremely important to maintain a balance between market situation and product launch.
Market demand: One of the key challenges of product launch is that the product owners (makers) are often of innovative mind. This means that the inventors/creators often launch a product in the market that they feel is useful. However, the fact is that, the market is seldom so tuned to an individual like/dislike. Creating a product for the market is more important than creating a product that a team feels is good and then launching it. A thorough market research, understanding of consumers, purchase propensity, etc. must be done before launching a product.
Legal matters: New technologies and products often bear a question mark in the market. One of the key issues that often plague a new product is the legal matters that surround it. New services, new technologies that change our way of day-to-day operation may or may not be legal in the sovereign system of the country and this needs to be considered carefully before launching a product.
Customers & competitions: This is a no brainer. Understanding customers and competitions are extremely important in launch of new product and services. It is extremely important to know the customer demand, the gaps in the market, the competitors’ SWOT and then enter a new market.
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