Blog 1 – Innovation or Profit?
21 november 2019
The decision to stop working on an innovative project, after spending $2.5B and several years with a talented group of people, is not an easy decision. The impact to the people involved is huge and you can say that you have lost a lot of money and time while trying to achieve your dream.
There would be companies that would probably make the decision to finalize the project, seeing that so much time and money has gone into it. Next to that you might have the realization that others did continue and are now selling this innovative product against a loss, although trying to turn the tide going forward.
At what point will you make the final decision: Innovation or Profit ? How long will you continue ? Will you apply the theory of sunk cost; which means that as soon as you realize that your project will not be commercially feasible, you pull the plug ? Basically this theory advises you to make a decision based on looking forward only, and not letting the investments already made affect your decision.
If you are working on an innovative project that has a positive impact at our environment and you want to pursue this dream, you will need investors to support you.
This is exactly what happened at Dyson; although the impact to the employees is not what you want as a business owner; having the guts to make a decision like this, is better for your company long term.
“Giving up doesn’t always mean you’re weak. Sometimes you’re just strong enough to let go” Taylor Swift.