How product development trumps sales innovation

05/1/2009 | Harvard Business Review online

The best innovations have nothing to do with how a business runs and everything to do with what a business markets, writes Umair Haque. Haque argues that the best model for innovation is focusing on creating a great product that doesn't require a business model overhaul to sell. "Business model innovation creates a kind of adverse selection. It offers a kind of insurance: if we can find more efficient ways to sell stuff, we don't have to make better stuff. When we invest in selling stuff better -- instead of making better stuff -- unsurprisingly, the stuff we make often turns into lemons," he writes.

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