The success or failure of innovation depends on various factors that occur before and during the implementation of a project. Addressing these issues can increase the chances of success while also ensuring the reduction of risks (White & Bruton, 2017). A project manager must come up with means of tracking a project to ensure that all the designed timelines and milestones are met. Other attributes such as the skillset of the team and the availability of resources can be one of the major reasons for a project to fail or succeed. As a project manager, it is also important to understand these key determinants of success and implement them within the project.
Successful Innovation
One of the major successful innovation is Tesla, Inc.’s electric car. Over time the motor industry has dwelled on diesel or petrol-powered engines. The innovation of cars that can use battery power or electricity is one of the successful innovations of the 21st century. Electricity use minimizes carbon emissions and the expense that would be used to purchase fuel. The success of the project has made the owner, Elon Musk, the richest person in the world as the company increases its production of sleek and electric cars (Chen & Perez, 2018).
The reasons for the success can also be attributed to various measures that were taken and the timing of the innovation. To begin with, the company hires highly skilled personnel who share the vision of coming up with products that have limited or no impact on the environment. The current global standpoint is also ensuring that products and innovations that are environmentally friendly are incorporated into the world to help reduce the aspect of global warming.
Additionally, the success of the company also rises from the ready market of electric cars and other forms of transport that would have reduced impact on fuel consumption. The high cost of fuel in many nations has increased the demand for products from Tesla, Inc. (Chen & Perez, 2018). The availability of new and sophisticated technologies also contributes to the success of the company and its innovative technologies. There is also excitement and acceptance of the technology within the mainstream and corporate worlds.
This raises the demands of cars throughout the world. Tesla, Inc. is also set to expand its factory and production lines to fast-track the production to meet the demand. The company is also based on a direct sales model and services, which makes the company interact directly with the clients other than using the franchised dealership (Alghalith, 2018). The organization is also diversifying into other fields such as aerospace and home energy.
Reasons for Failure
One innovation that failed upon its startup was the On-demand Delivery Platform, Shyp (2013-2018). The concept of the innovation was basic as users could take pictures of the item that they required to be shipped and then make use of the Shyp application to schedule a pick-up (Corporate Venturing, 2019). The package would then be picked and dropped at the provided destination at a flat rate of $5.
The collapse of the innovation began after it secured a grant of $62 million from different investors that were used to expand its services to include new cities such as Chicago and New York. With the high presence in various cities, the consumer growth reached a saturation point and began to slow, leading to the inability to sustain the expansion. With the reduced number of clients, the company was not able to maintain different outlets with the $5 flat rate on all commodities.
Another reason for the failure is the decision to increase the charges for larger packages, which led to client backlash. Similarly, the target audience for the company was individuals whose shipment was sporadic and could not be depended upon for continuity of the company (Corporate Venturing, 2019). The management of the company was also slow in re-evaluating the direction of the company, and by the time they were scaling down, it was already too late as the customer loyalty had been affected adversely. The low number of customers led to the untimely collapse of a rather lucrative innovation.
Reasons Relating to Poor Planning
Various attributes are indicative of poor planning on how Shyp conducted their business strategy. To begin with, the expansion of an innovative idea without consideration in the flow of clients or availability of finances to facilitate the continuity of the
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