Value Innovation vs. Technology Innovation
As Motorola learned, a breakthrough in technology is not necessarily synonymous with a breakthrough in value that can attract the mass of target buyers. The Iridium was a useful technological feat that worked around the world, including the far reaches of the Gobi desert, but did not work in buildings and cars, the precise places that global executives on the move most needed them to work. It failed to create a leap in value for its target mass of buyers — business executives.
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