My friend Arun Kottolli in his blog post Improving Innovation with Increased Customer Awareness hits the nail on why so many innovations are failing today. This also links to what we addressed in the last post if you know what business are you in.
Arun quotes quite a few examples from technology space where innovations have happened but have failed to succeed, and given the rate at which they are failing it makes sense to look at the causes for it.
Technology innovations have a tendency to forget the customer. Sometimes that works when you come out with an ahead of curve product that may be beyond the expectation of most customers or consumers, but this happens once in a blue moon and it happens when your product really a true innovation and addresses a unique customer need. Most incremental innovation would fail if they do not differentiate themselves uniquely or do not provide enough reason to the customer to ditch the established players and go for your product. Price advantage works to an extent, but fails after a point.
I liked his point of financial accounting innovation, which is nothing but manipulating the numbers to show innovation. This aspect of Innovation needs to be studied and shared.