The internet has made it easier for businesses to launch new products and services, but also easier to waste time and money, and fail. The human imagination can launch endless new products and services. Now, low entry barriers (children can build simple websites), an increasingly interconnected world, and the rise of outsourcing have led to an explosive proliferation of new products and services, all competing for limited market share. For example on Amazon in the USA, the number of available products jumped to 488 million from 253 million in only two years (since December 2013). That’s an average of 485,000 new products per day! Numbers similar to Amazon’s can be found in most markets worldwide¹.
The downside and bitter truth of this development is that 70–80% of all product innovations fail, which leads to investment losses of more than 12 billion USD per year, as pointed out by GfK market research institute² and Harvard Professor Clayton Christensen³. The major reason for failure, according to Dr. Ken Hudson⁴, is that a new product or service does not excite customers and retailers” because companies misunderstand consumer needs and the problem that the product is allegedly solving.