The 9x Effect

New products fail at the stunning rate of between 40% and 90%. Why? The 9x Effect: You have to be 9x better than the existing alternatives to win their market.

• companies often overweight the new product's benefits by a factor of 3.
  • dissatisfied with the status quo and convinced the innovation works.
  • IKEA effect: labor alone can be sufficient to induce greater liking for the fruits of one’s labor.
  • view the innovation as the benchmark.
• consumers often overweight the old product's benefits by a factor of 3.
  • satisfied with the status quo and have change aversion.
  • don't know the product and are skeptical about the new product's performance.