This is based on the HBR Article by Scott Berinato, on how Sometimes, Less Innovation is Better, based on a 30-Year Study of Formula 1 Race Cars Shows When Innovation Backfires by City University of London professor Paolo Aversa.

1. Sometimes, Less Innovation Is Better
HBR Article By: Scott Berinato
Presentation by Satoshi Takano
cc: Leo Reynolds - https://www.flickr.com/photos/49968232@N00
https://hbr.org/2017/05/sometimes-less-innovation-is-better

2. Paolo Aversa and his
colleagues documented
every innovation on more
than 300 Formula 1 race
cars over 30 years and then
cross-referenced that data
with information on F1 race
results.
http://pubsonline.informs.org/doi/full/10.1287/orsc.2015.0984

3. They discovered that in
certain situations, more
innovation led to poorer
performance.
http://pubsonline.informs.org/doi/full/10.1287/orsc.2015.0984

4. Their conclusion: sometimes,
LESS innovation is better.http://pubsonline.informs.org/doi/full/10.1287/orsc.2015.0984

5. Why would less innovative cars
perform better?
cc: mnadi - https://www.flickr.com/photos/22965089@N00

6. If you have a complex
product, like an F1 car, and
are in a turbulent market,
your instinct might be to
innovate—to invest in
getting ahead of all the
change.
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7. But your chances of failing
are very high.
cc: gazzat - https://www.flickr.com/photos/57557325@N00

8. Often, it’s better to wait and
let others who are busy
innovating fail first.

9. For Example
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10. In 2009, F1 announced that
teams could compete using
hybrid technology.
cc: williamcho - https://www.flickr.com/photos/84493444@N00

11. Instead of investing in the
new technology, Ross
Brawn’s team just built a
really solid, basic race car.

12. With driver Jenson Button,
the team blew away
everyone racing the
superinnovative hybrid cars
and won the championship.
cc: Rego - d4u.hu - https://www.flickr.com/photos/36234195@N04

13. Once the hybrid technology
started to stabilize—once it
wasn’t so uncertain—
Brawn invested in it
cc: nan palmero - https://www.flickr.com/photos/97402086@N00

14. And rebranded itself as the
Mercedes F1 Team.
cc: Leo Hidalgo (@yompyz) - https://www.flickr.com/photos/69474058@N03

15. So, how do you know you’re in a
turbulent environment?
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16. 3 Factors
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17. One: the MAGNITUDE of change. How
much is the industry changing
compared with other times?
cc: daniel.julia - https://www.flickr.com/photos/60814789@N00

18. Two: the FREQUENCY of change. How
often are changes coming at you?
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19. Three: predictability. Can you
see changes coming?
cc: jlz - https://www.flickr.com/photos/32653260@N00

20. If predictability is low, and
either frequency is high or
magnitude is large, you
should scale back
innovation until things get
more stable.
cc: HALDANE MARTIN - https://www.flickr.com/photos/52634191@N08

21. If all three are working
against you, you should
innovate less.
cc: HALDANE MARTIN - https://www.flickr.com/photos/52634191@N08

22. Does this really apply to
other businesses?
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23. Absolutely.
cc: Joe Shlabotnik - https://www.flickr.com/photos/40646519@N00

24. Think of any complex product.
cc: Luke,Ma - https://www.flickr.com/photos/23249662@N03

25. Sudden changes create
instability that seem to beg
for innovation, but it’s
probably better to sit tight
and focus on execution and
efficiency.
cc: Luke,Ma - https://www.flickr.com/photos/23249662@N03

26. Think about music formats:
The frequency of change is
increasing, but it’s still not
that often.
cc: Fey Ilyas - https://www.flickr.com/photos/28968923@N08

27. Vinyl was around for
decades, CDs were around
for years. But magnitude is
massive when changes
take you from a CD to a
streaming service.
cc: jackol - https://www.flickr.com/photos/44124329962@N01

28. Apple Didn’t Invent
Music
Tesla Didn’t Invent
Electric Cars
Amazon Didn’t Invent
E-Commerce
cc: jackol - https://www.flickr.com/photos/44124329962@N01

29. Innovation-as-a-Process
• Grade each element’s
innovativeness on a scale of 0
to 3, where 3 was radical
innovation and 0 was little to
none.
• Vet it out with other
stakeholders.
cc: photographerglen - https://www.flickr.com/photos/10770008@N04

30. In SUMMARY:
Push the envelope in a
stable market, but focus on
efficiency in a turbulent
one.
cc: photographerglen - https://www.flickr.com/photos/10770008@N04

31. In a turbulent market, let
others fail first.
cc: photographerglen - https://www.flickr.com/photos/10770008@N04

32. Sometimes, Less Innovation Is Better
stakano@gmail.com
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