Innovation Updates in May

2. Five Causes for Failing to Scale

While some ideas, products, and companies grow and thrive, others fail to scale. A newly published Harvard Business Review article highlights five causes why a promising idea can lose efficacy or profitability as it expands:

If your idea relies on data or evidence that is inaccurate, it leads to a false positive. This is problematic because it signals a potential where there actually is none. A false positive either occurs because of a statistical error or intentional lying. 

A way to avoid false positives is to have at least three independent replications of a promising idea and to incentivize your employees to question data.

To scale an idea, you need to understand the potential target group. Therefore, it must be ensured that your test sample is representative and reflects the larger population. Choosing a random sample helps to avoid selection bias. Offering incentives to participants also encourages them to tell the truth.

In order to hold strong at scale, the drivers of your idea’s or business’ success, the “non-negotiables”, should be replicable and resistant to certain constraints (like regulatory or resource constraints).

As your idea or business scales, the likelihood of spillover effects increases. A spillover effect is an unintended impact that one event or outcome can have on another. A good example in the article is when a city opens a new factory, and the air pollution it produces impacts the health of nearby residents. When developing your idea, you need to anticipate negative spillovers at an early stage and look for opportunities to create and leverage positive ones. 

To ensure your idea scales successfully, you also need to know what your target group is willing to pay for your product or service and how much it costs to provide it. Two costs have to be covered: fixed costs that arise upfront and operating costs. The second can become problematic if they are too high for your potential customers' willingness to pay.

One way to avoid the cost trap of scaling is to ensure that you benefit from economies of scale. One example cited is Tesla, whose success stems from economies of scale in its two most important components: batteries and solar power generation cells, both of which can be manufactured significantly cheaper in higher numbers. Another way is to create products that do not rely on top-tier talent and provide full value to customers also with average performers. 

Once you anticipate and avoid the obstacles mentioned above, you can scale your idea or business to the greatest extent possible.

3. Our Tech of the Month: Biomimetic Devices

Earth Day (22 April) serves as a reminder to support and take action toward achieving greater levels of environmental protection, conservation, and sustainability. The acceleration of sustainable innovation is needed to meet these challenges—and where better to look for these solutions than in nature itself?

Biomimetic devices use biomimicry as inspiration to engineer solutions whose functions imitate biological processes. These devices mimic biological efficiency and are engineered to overcome natural biology's limitations through nanotechnology, artificial intelligence, robotics, or sensors. 

Using nature as a model, systems, and design thinking are present at multiple stages in the biomimetic development pipeline. This, in turn, benefits the medical, scientific, and engineering fields. The aerospace industry, in particular, presents several innovative use cases for biomimetic devices. 

The aerospace industry is drawing from nature for more efficient energy consumption methods. Technological and structural advancements have been made based on the morphology and movement of manta rays, humpback whales, and perhaps most notably, albatrosses—which uses their large wingspan and air currents to be one of the most energy-efficient animal travelers. The patterns of geese flying in a V-shaped formation have also been imitated to significantly reduce energy consumption without structural adaptations.

Biomimicry is also applied for manufacturing efficient aerial vehicles with lightweight and shape optimization features. Inspired by owls and other bird feathers, these lightweight crafts enhance maneuverability, reduce drag, and suppress aerodynamic noise. Moreover, bio-inspired wings consume less energy compared to conventional wings. However, availability and precision remain challenges.

Airbus has launched multiple biomimicry projects in support of its aim to make the aviation sector more sustainable. It has innovated an "eXtra Performance Wing," inspired by the ability of eagles to alter the shape, span, and area of their wings. This ability allows eagles to optimize their aerodynamic performance continuously. Airbus' extra-performing wing integrates technologies that enable active control, which, if realized, will increase flight efficiency and reduce carbon emissions.

To explore more technologies related to sustainability, check out the Sustainability Tech Radar containing 30 solution drivers that are most relevant to the UN 2030 Agenda for Sustainable Development.

4. Fact of the Month: Must-Haves for Innovations in Sustainability

In recent years, consumer buying behavior has changed and environmental sustainability has become increasingly important. This has led to more and more manufacturers developing new innovations to meet the demand for sustainable products.

As part of a survey performed for Deloitte’s 2022 Consumer Products Industry Outlook, consumer packaged good (CPG) executives were asked what they consider must-haves for making innovations in sustainability happen.

The result: companies indicate that new technologies are most needed to succeed in their innovation efforts.

Read on if you want to learn more!

5. Your Monthly Dose of Innovation

You are always looking for new sources of inspiration, and you are a podcast fan? Check out these two lists of the best innovation podcasts and find your new favorite!

1. 60 Best Innovation Podcasts by FeedSpot
2. 13 Best Innovation Podcasts for 2022

Our tip: the Innovation Rockstars Podcast (hosted by ITONICS CEO Chris Mühlroth) - #9 of the 60 best innovation podcasts. Tune in!