Maturity stage innovations

Rigid application of classical financial analysis Is not well suited to the early stages of Innovation, where it can sometimes create an Insurmountable barrier. As opposed to the control-oriented mode more generally applicable to mature business operations, a financial attitude that Is supportive over the longer term Is what Is needed to stimulate Innovation. 

Markets are not static—they emerge, grow, mature, and decline. As a market moves from one life cycle stage to emother, changes occur in its strategic considerations, from innovation rates to customer price-sensitivity to intensity of competitive rivalry and beyond. The market fife cycle provides a useftrl framework for studying markets and their impact on the enterprise s valrre proposition. 

As with all new technologies, as the market matures there will be greater downward pressure on price. The reality is that many early stage ECM mannfactnrers have been small and inefficient operations. The first companies to reach a critical mass that affords for reinvestment will need to focns on manufactnring innovation to maintain a leading position. 

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