EXAMPLE: Philips invested significant resources—time and money—in the
development of its interactive TV. Customers did not purchase this product
in sufficient quantities to allow Philips to reach its revenue target; in
other words, the new product failed to be adopted by the market. Not only
did Philips lose money, but time was lost in coming up with a better innovation.
If interactive TV had succeeded at that time, Philips would have
had an enormous head start over its competitors and the possibility of creating
a step change in its revenues.