More than 90 percent of innovation initiatives fail to achieve their return-on-investment targets. Poor management decisions and lack of marketplace savvy often undermine even huge research efforts. Can America continue to be a formidable global competitor with this kind of failure rate?Taking a case history approach, this book examines eight typical innovation blunders that continually doom new product development. From misjudging the market and "dead-on-arrival products" to "fatal frugality" and "timetable tyranny," the author discusses not only why such mistakes occur but also the dire consequences to both investors and employees. Among the problems Hodock points to are breakdowns in the marketing research process, marketing dishonesty, lack of real-world preparation among newly graduated MBAs, CEOs under pressure to deliver unrealistic earning targets, clueless boards of directors, and the general absence of accountability. After analyzing each problem, Hodock emphasizes the lesson learned and concludes with a list of best practices for successful innovation. He shows how even modest improvements in the innovation process can double the bottom line for any company while making their shareholders more prosperous and happier.Hodock's incisive analysis and illuminating new approaches to successful development and marketing are must reading for students of business, seasoned corporate executives, and anyone interested in the future of American business. ""This book rocks with practical and perceptive candor, and down-to-earth advice. Any company can improve its new product marketing and financial success batting average by adopting [these] principles.”--Peter Klein, recent Sr. VP for Strategy & Development, Gillette Company; founder of PK Associates“Why is what is obvious ignored so frequently? Find out in this book that case by case takes you through the highs and lows and even the in-betweens of innovation as an engine of company growth and shareholder prosperity.”--James Figura, Vice President, Consumer Insights, Colgate Palmolive“Useful information for every customer and business leader. Real-life case histories reveal why innovations fail and firmly establishes the importance of integrity." --Doug Scott, CEO and President, Platinum Television Group, New Line Media Solutions Calvin L. Hodock (Skillman, NJ) is professor of marketing at Berkeley College, Garret Mountain and Middlesex Campuses, an adjunct professor at New York University’s Stern School of Business, and a guest lecturer at the University of Pennsylvania’s Wharton School of Business. He is the former chairman of the board of the American Marketing Association, the world’s largest professional marketing society. He is also on the board of directors for NuVim, Inc. He has previously published for the American Marketing Association, McGraw-Hill, and the Advertising Research Foundation. Why [SMART COMPANIES] Do Dumb Things Lessons Learned from INNOVATION Blunders Avoiding Eight Common Mistakes in New Product Development By Calvin L. Hodock Prometheus Books Copyright © 2007 Calvin L. Hodock All right reserved. ISBN: 978-1-59102-568-9 Contents Chapter 1. The Innovation Challenge................................................7Chapter 2. Avoiding Marketing Misjudgment..........................................29Chapter 3. Antidotes to Poisoned Positioning.......................................49Chapter 4. The Perils of Dead-on-Arrival Products..................................85Chapter 5. Competitive Delusion....................................................131Chapter 6. Fatality in Frugality...................................................155Chapter 7. The Evils of Timetable Tyranny..........................................177Chapter 8. Defective Marketing Intelligence........................................205Chapter 9. Marketing Dishonesty....................................................225Chapter 10. What's It All About?...................................................253Chapter 11. Rules of Engagement: Shareholders......................................285Chapter 12. Rules of Engagement: Corporations and MBA Programs.....................299Chapter 13. A Few Final Thoughts...................................................331Index..............................................................................337 Chapter One [THE INNOVATION CHALLENGE] Damned If You Do and Damned If You Don't "In 1882 in lower Manhattan, Thomas Alva Edison flicked the switch to electrify Pearl Street." However, it would be almost four more decades before electric appliances were widely available to American homes. Following the dawn of the twentieth century, the urge to innovate turbocharged America. The everyday landscape of the country was permanently altered, fueled by a passion for innovation. The next hundred years are likely to be equally rich in innovation and scientific progress. It's the American style. A NEW DAW