Detailed Financial Metrics Detrimental for Disruptive Innovations

Companies that rank projects using detailed financial metrics won’t end up selecting ones aimed at the seemingly small, difficult-to-measure markets that are so often the FOOTHOLDS FOR POWERFUL GROWTH STRATEGIES. Instead, they’ll likely make move forward with projects in large, measurable markets -the ONES THAT ARE USUALLY HOSTILE TO DISRUPTIVE INNOVATIONS. As a result, new products often fail to deliver significant , differentiated new benefits, or the company suffers a devastating response from the incumbents.

Source: HBR, “Mapping Your Innovation Strategy”