Please also see https://youtu.be/1roX59GdMu4 This is a case study for the very expensive innovation project Iridium in the late 1980s and 1990s. Over $5 billion was invested in this project, the company filed for bankrupcy just over a year after its launch.

1. I R I D I U M
Corporate Innovation
Failure
Case Study

2. I R I D I U M
• Satellite phone company
• 66 satellites
• IPO in 1997
• Bankrupcy in 1999
• $5 billion dollars invested
• Largest investor Motorola

3. W H E R E D I D I T
G O W R O N G
In 1992, there were only 300.000
cellphones around
Cellphones in 1997 were good enough
for most people and a lot cheaper
Price: initial retail price in the US $3295
+ $7 per minute
Subscriptions had a peak of 30.000

4. W H E R E D I D I T
G O W R O N G
Value Proposition: “connect
anything and anyone”
Rolls Royce of (satellite)
communications
Marketing flaws: too much
focus on Oil & Gas companies

5. W H E R E D I D I T
G O W R O N G
Bankrupcy in 1999
Motorola wrote off $3.5 billion
on its investment
12 years of building, 20 million
lines of computer code
Sold off, restarted

6. L E S S O N S L E A R N E D
Watch your Value Proposition
Large investments vs. Long and little dynamic launching processes
Never let IT people decide how good the technology needs to be
Keep checking out evolving technologies and competitors and substitutes

7. PLAYGROUND FOR
ENTREPRENEURS
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