What is the first consideration when developing a strategy around technological innovation?

When developing a strategy around technological innovation, assessing market potential is vital because it helps organizations understand the demand and feasibility of new technology or products in the marketplace. Ensuring that there is a target audience willing to adopt and support the innovation can significantly influence its success. Market potential allows companies to gauge customer needs, preferences, and trends, which are crucial for creating relevant and effective technological solutions.

Recognizing market potential early in the planning process helps guide subsequent decisions, such as how to allocate resources, what competitive advantages to pursue, and how to manage costs effectively. Without a clear understanding of the market, even the most innovative technologies can fail to generate traction or acceptance, making it a foundational element in the strategic development process.