Technology is not yet Innovation

Technology Is Not Innovation

Technological progress, while necessary, is not sufficient for innovation. Especially in tech-driven industries and regions like Germany, there is a tendency to focus too narrowly on technology development—often at the expense of market needs, user acceptance, and commercial viability. This tech-centric view often prevents innovations from succeeding in the market.

The Reluctance-to-Adapt Effect: Technology Without Market Acceptance

A well-known example is the delayed adoption of goal-line technology in professional football. Though technically mature, its rollout was hindered by cost concerns and lack of willingness from smaller clubs. Innovation requires more than functionality; it must also align with what the market is willing and able to accept.

Another example is the failed transition from sailing ships to early steam-powered vessels. Even a technically superior design will not prevail unless it is economically and functionally viable.

Failed Innovations: When Great Tech Meets the Wrong Market

Many promising technologies failed not because they didn’t work, but because the market wasn’t ready. Examples include:

• Google Glass: Privacy concerns, unclear target audience, and high cost.
• Segway: Lacked affordability, practicality, and a clear use case.
• 3D TV: High price, limited content, and poor user experience.
• GE Predix: A powerful platform that was too complex and costly for its intended SME audience.
• Bionic Grippers by Festo: Technically impressive but outcompeted on cost and simplicity by other automation solutions.

These examples demonstrate: without market alignment, even the best technology will fail.

The Five Readiness Levels of Innovation

Most companies already use the Technology Readiness Level (TRL) to evaluate technical maturity. However, this alone is not enough. A more holistic approach is required, considering the following five dimensions:

1. Market Demand Readiness
   Is there clear customer pain and willingness to adopt?
2. Technology Readiness
   Is the solution technically feasible, scalable, and robust?
3. Finance & Business Readiness
   Can the solution be funded, and is the business model viable and profitable?
4. Competence & Network Readiness
   Is the right team and ecosystem in place to execute?
5. IP Readiness
   Are intellectual property and competitive advantages protected?

Each of these areas must be developed in parallel—from the ideation phase through to scaling. A technology that scores high in TRL but low in market or business readiness is unlikely to succeed.

From Technology Push to Market Pull: A Mindset Shift

Companies need to move away from the idea that better technology automatically wins. Instead, innovations should be developed with:

• Customer pain points clearly identified and validated.
• Rapid prototyping and early market testing.
• Simplified solutions that solve one specific high-priority problem.
• Lean MVPs that allow fast feedback and iteration.
• Cross-functional teams with both technical and business capabilities.

Innovation must start with value and feasibility—not with features.

The FIVE Model: Structured Innovation Across All Dimensions

To support this approach, the FIVE Model was introduced. It integrates the five readiness dimensions into an agile sprint-based process. Each innovation project proceeds through iterative phases:

• Sprint 1: Idea validation across all five dimensions
• Sprint 2: Concept development with clear target costs and use case
• Sprint 3: Market testing and business model validation

At every stage, the goal is to simultaneously increase readiness in all dimensions—not just technical maturity. This model avoids the common pitfall of technology-first development and builds balanced, scalable innovations.

From Vision to Implementation: Balancing Agility and Structure

Innovation needs structured agility: experimentation with purpose. That includes:

• Building internal and external innovation networks
• Encouraging early customer interaction and feedback
• Maintaining flexibility to pivot based on new insights
• Delaying business case pressure until the right maturity level is reached
• Creating protected environments (e.g., innovation labs) to test ideas free from corporate constraints

Most importantly: innovations must be aligned with strategic goals, scalable cost structures, and clear market demand.

Conclusion: Innovation Is the Result of Balance

True innovation is a combination of technology, market fit, customer value, cost-effectiveness, and execution capability. Technology is a vital enabler—but without customer relevance and business logic, it remains unused potential. Structured, cross-disciplinary models like the FIVE approach help translate technical advances into real-world impact.