35 Well-Known Failed Innovation Projects: What You Can Take Away From Them
- Roberto Coppola
- Jun 10, 2024
- 18 min read
Updated: Aug 28, 2024
Failure can teach you a lot more about innovation than success does.
We're always here to honor the industry leaders who have transformed the world through exceptional goods and services. However, you should also remember that there are notable product failures that can teach you a lot of valuable lessons.
We'll walk you through 35 of the most notable innovation failures in history in this article. We'll outline the mistakes made by the accountable companies and provide advice on how to steer clear of them.
These examples have a lot to teach you, whether you're talking about significant errors made with new products (think New Coke) or instances when businesses miscalculated the market (like Sony's mistake with the Betamax). You only have to take what you can from them.
We'll categorize these failures by industry, including consumer goods, automotive, food & beverage, lifestyle, computers, health & pharmaceuticals, and consumer electronics. We have everything, from dubious blood testing to misguided scents.
Why research failures in innovation?
You might be asking yourself why we are concentrating on the bad things at this stage.
Ultimately, with so many success stories of innovation available, why concentrate on businesses that have done things so horribly wrong?
The truth is that there are hundreds of rivals who never quite make it out of the gate for every innovation leader in the market, such as Google, Microsoft, or Amazon. It's always beneficial for developing companies trying to make a name for themselves to attempt and figure out why this occurs.
For this reason, it's critical to examine instances in which other businesses have made mistakes. You'll stand a greater chance of keeping your next fantastic product from suffering the same fate if you can identify the areas where they went wrong.
1. The Virtual Boy from Nintendo
The Virtual Boy, despite being marketed as a virtual reality gaming device, was not even remotely a virtual reality system.
Rather, it was an expensive, clumsy, and unresponsive piece of gaming technology. Worse, it had a restricted selection of games for customers to choose from and an operating system that left users scratching their heads in confusion.
More seriously, there were rumors that the Virtual Boy might have harmed some users' backs and possibly affected their vision. Ouch!
This is an excellent illustration of an invention that was rushed into the market before the technology was fully developed and without sufficient consideration for user testing. Nintendo may have had a winner on its hands if it had taken the time to work out some of these problems.
2. The Zune from Microsoft
The Zune, ah. Despite years of tireless marketing, Microsoft's personal MP3 player never really took off, despite the company investing a lot of time and resources in its promotion. It was eventually discontinued in 2015.
This is more of a story of a perfectly good product being completely overtaken by a market rival: the iPod, than it is of a poor product causing an innovation to fail.
The Zune serves as an excellent reminder that, occasionally, timing is everything. Had Microsoft attempted to sell this product a few years earlier, it would not have had to compete with the iPod and might have been able to find a market.
3. The Betamax Sony
When it comes to consumer electronics in particular, the 1970s were an exciting time. People could now record broadcast television shows at home for later viewing for the first time, and JVC and Sony were fighting for market share with VHS and Betamax, respectively.
Sadly for Sony, JVC's product was less expensive, lighter (29 pounds as opposed to 36 pounds), and had a larger recording capacity. Additionally, JVC was quick to get into contracts with companies that rented out video cassettes, which led to the rapid increase in popularity of VHS players.
This is a useful illustration for inventors of how two comparable items are competing in the market. In this instance, JVC prevailed mostly due to business considerations unrelated to the machine's architecture. This is the reason it's critical to keep a careful eye on the competitors.
4. The Newton Apple
Another product that was released at the wrong time is the Apple Newton. Many of the fundamental concepts contained in the Newton finally found a home in the iPad because of its touch-screen functionality and portable form, but this wasn't until ten years after the Newton was discontinued.
Another issue impeding the Newton's progress? Its cost. In 1993, consumers were just unwilling to spend their money on something that fell in the middle of a PC and an electronic organizer. Not quite yet, anyhow.
5. The Storm of Blackberries
Despite the value of Blackberry's goods, the iPhone has eclipsed the firm for the most of its existence. Even with its convenient keyboard and email connectivity, Apple's products have mostly supplanted Blackberry's market share.
Nonetheless, Blackberry made a lot of mistakes with the Storm. With good cause, this phone is currently regarded as most likely the worst smartphone ever released: its connectivity problems, practically unusable interface, and exorbitant price for the time made it unsuitable for the general public.
This is just another excellent illustration of the need for businesses to spend time perfecting their products!
Failures in pharmaceutical and health innovation
Innovations in the pharmaceutical and health sectors have the potential to change millions of people's lives worldwide.
Unfortunately, businesses occasionally force things onto the market before they're ready because of their desire to improve lives while making a fair profit.
6. Theranos
One of the clearest examples of risky medical innovation failures is Theranos, the former unicorn firm that promised to revolutionize blood diagnosis technologies. An astonishing $9 billion US was once the company's valuation before a 2016 fraud scandal sent it to ruin.
Even with a number of well-known investors and a lot of fanfare from Silicon Valley, Theranos was reportedly falsifying its lab results to make them look better for potential investors. To make matters worse, it was rushing its items onto the market before they even began to resemble viable products.
Elizabeth Holmes, the CEO and founder of Theranos, will go on trial in 2020 for fraud for her part in misleading investors and misrepresenting the company's technology to the general public.
An effective reminder of the necessity of accountability and transparency in innovation is the Theranos scandal. Additionally, it's a terrible illustration of corporate innovation culture gone awry.
7. Zeo
Another example of a health-related innovation failure is Zeo, a sleep monitoring firm. Its fraud is not as dangerous as Theranos's blood-testing technology scam.
Zeo was once a promising company, but it appears to have failed for the same reason as many other health startups: it hurriedly brought goods to market before they were ready and neglected to take the time to comprehend the needs of patients and users.
In addition to Theranos, the Zeo example highlights the significance of sifting through the flashy marketing and hoopla to ensure that the innovation's core technology is sound.
8. The Vioxx medication from Merck
Anytime a new medication is introduced to the market, unanticipated events could occur. Regretfully, innovators sometimes rush to market their solutions before the long-term implications are clear for corporations looking to build a name for themselves with investors and patients.
This was undoubtedly the case with Vioxx. Although this medication was on the market for many years, it was later found to raise the risk of cardiovascular events, including heart attacks and strokes.
When it comes to failed innovations, this one was expensive: Merck ultimately agreed to pay $4.85 billion in damages to the drug's consumers. This is just another illustration of the need for innovators to spend the time necessary to fully comprehend the ramifications of their inventions, particularly in situations where lives are at risk.
9. implanting metal on metal hips
This invention isn't the exclusive domain of one business. Metal-on-metal hip implants are still among the most problematic medical developments of the last few years.
In terms of efficacy and long-term patient benefit, hip replacement technology is constantly advancing, and many patients have experienced success with metal-on-metal implants. However, studies on the negative impacts of this technology have been written in many different countries.
The risks associated with medical innovation are illustrated by this example: businesses must continually evaluate whether technology is safe when hundreds of thousands of patients depend on it.
10. Opioid medications
This one is significant. When it comes to failed innovations, the manufacture and widespread overprescription of opiate painkillers worldwide, especially in the US, has resulted in an almost unimaginable amount of harm and suffering for people.
Although many individuals with chronic pain have found relief from their discomfort thanks to opioid painkillers, the overuse of these medications and the ensuing opioid crisis have made this invention one of the worst in human history.
All things considered, this is a valuable lesson for businesses and governments worldwide. The long-term consequences of a product should be thoroughly investigated before it is introduced to the market, and the findings should be made available to consumers, legislators, and healthcare providers.
Failures in automotive innovation
An additional high-stakes arena for innovation is the automotive sector.
Millions of drivers could benefit from and be delighted by developments in vehicle technology and design, but if something goes wrong, these goods could also have a fatal effect on users.
11. The Pinto Ford
Famous for being an automotive innovation failure, the Ford Pinto even has its own podcast.
Even with the Pinto's distinctive style and low price, Ford neglected to take important precautions to reinforce the gasoline tank. This meant that the car would burst the fuel tank and could explode even in a low-speed collision. That's obviously not good.
Following numerous documented occurrences involving the Pinto between 1973 and 1978, Ford went on to recall 1.5 million of the vehicle's variants. Because of this, the Pinto serves as an expensive and hazardous reminder of how crucial it is to execute innovation with precision.
12. The DMC-12 DeLorean
Among all the failed innovations on this list, the DeLorean DMC-12 is by far the most impressive.
Though it had a sleek appearance, vehicle aficionados never really seemed to be able to settle down with the DMC-12. Due to the car's intricate design and slow sales, DeLorean had to incur significant costs during the manufacturing process, ultimately resulting in bankruptcy.
The DeLorean DMC-12 debacle involved more than simply pricey production. It's also a fantastic illustration of how a haphazard marketing strategy can derail an otherwise legendary product.
13. The Edsel Ford
Although two Ford entries on this list may seem harsh, we assure you that the Edsel was an automobile disaster of such astounding proportions that it deserves to be there.
You don't think we're real? Even market leaders like Bill Gates are reminded of how easily innovation may go wrong by pointing to the Edsel as an example.
Ford used a pricey and erratic development process to create the Edsel.
According to sources, the business granted product development executives too much latitude with the Edsel and hurried development without first completing the fundamentals, instead of following research.
The Edsel was not only a huge failure, but it also cost Ford hundreds of millions in product development. This example demonstrates how a corporation that has created so many wonderful products for the globe may nevertheless make major mistakes.
14. The Nano-Tata
The Tata Nano was priced at an astoundingly low $2,500 US and was touted as an inexpensive, no-frills product with the express purpose of catering to the local Indian market.
Regretfully, production shortcuts were the only way to achieve this product's incredibly cheap cost. Because of this, driving a Nano was risky since some versions were known to catch fire on their own.
The Tata Nano, along with the Pinto, is an excellent example of why some products are simply too vital to make corners on throughout production.
15. The Dependable Robin
This one will be familiar to all Mr. Bean fans.
These well-known three-wheeled cars, which are also ridiculed by most, are somewhat of a collector's item and are a perfect example of an idea that probably should have stayed on the whiteboard.
The Reliant Robin is anything but reliant, in actuality. They have a reputation for rolling over at the drop of a hat and for having breakdowns. It makes sense that they hold the dubious title of being the worst British automobile ever made.
Failures in food and beverage innovation
Everybody is searching for the newest and greatest food and beverage trends. This can result in many well-liked inventions, but it can also lead to some rather puzzling releases from businesses.
16. Fresh Coke
Without New Coke, no list of failed innovations could be considered complete.
Among all the unsuccessful products on this list, New Coke stands out the most. It's now used as a catch-all for an established business that's lost its way and is attempting to provide its clientele with something they didn't ask for.
This is an excellent illustration of why businesses should exercise caution when making changes to a well-known product. The company's attempt to improve the traditional formula and increase the sweetness of an already-sweet beverage was known as New Coke.
Fortunately, the New Coke scandal was short-lived; the business repurchased the original recipe under the Classic Coke brand 77 days after it was introduced in 1985.
17. Light Guinness
Guinness Light is a crucial chapter that highlights the dangers of over-experimenting with a well-established product, alongside New Coke. A good thing should sometimes be left alone.
Sales were dampened after the business decided to sell this mild version of its iconic stout. The beer itself was perfectly delicious, but the corporation had dug itself a hole by diluting the established brand name, and no amount of marketing could get it out.
One of the most important lessons for innovators worldwide to learn from Guinness Light is to know what your customers want and don't want.
18. Colgate Lasagne
This failure of invention is almost too bizarre to be true.
In the 1980s, Colgate, a well-known brand in toothpaste and oral hygiene, had the brilliant idea to launch a line of frozen dinners to complement its current product line.
Their reasoning appeared to be as follows: Given that consumers are already familiar with Colgate as a fantastic toothpaste brand, why not extend this brand recognition to frozen meals like lasagne?
Sadly, the strong connotation that the Colgate brand has with minty, revitalizing toothpaste proved to be irresistible. Unsurprisingly, the line never really took off, so Colgate opted to focus on its strengths.
19. The McDLT at McDonald's
The McDLT is a good addition to the list of fast food blunders, but for a different reason.
The extremely wasteful packaging wasn't well welcomed by customers, even if the burger itself was well received. In order to "keep the hot side hot, and the cool side cool," McDonald's divided the burger into two distinct polystyrene packets.
Sadly, it was all simply a bewildering jumble of superfluous, oversized packaging, and it now serves as a reminder of the excesses of 1980s consumerism.
This case demonstrates how an invention might occasionally be undermined from an unexpected direction.
20. Salvation Soda
Have you ever puzzled why liquid candy hadn't been made available when you were consuming it? Not at all? Neither have we.
In the 1980s, Life Savers, on the other hand, decided they might be onto something and transformed its iconic multicolored candy into a beverage. They would have to be onto something, with a well-known brand and instantly identifiable packaging, right?
Unfortunately, it was just too sickeningly sweet for the company's clients. Luckily for dentists everywhere, the product was discontinued by the firm not long after it was introduced.
Life Savers Soda, like Guinness Light and Colgate, provides inventors worldwide with an important lesson: a well-known brand name does not excuse an unnecessary product.
calculating the shortcomings of innovation in computing
When it comes to new technological developments, computing is always an intriguing field, much like personal electronics. There are many examples of how new technology is emerging at an incredible rate in the market.
Regretfully, not every advancement in computers has the potential to alter the course of history.
21. The way IBM handled the PC market poorly
Although this one doesn't necessarily qualify as a particular product failure, organizations across all industries can learn a lot from it.
IBM lost out on a great chance to capitalize on the growing personal computer industry in the 1980s. If only it had recognized the potential, it could have controlled the market for decades with its technology, production capacity, and industry presence.
As the next decades have demonstrated, IBM has continued to operate effectively despite this lost chance. However, IBM could have been a real giant of the technology industry if it had made more of an attempt to enter the PC market.
This is an excellent illustration for businesses of the dangers of inaction. Missed opportunities can be devastating at times!
22. Glass by Google
Though Google Glass truly goes beyond basic consumer electronics, we could certainly classify it under the "consumer electronics" heading.
Google Glass never really took off, even though it had some potentially revolutionary capabilities like hands-free web surfing and real-time map imagery.
One of the best illustrations of a product whose exorbitant price guarantees its demise is this one. Google Glass never had much of a chance to take off since even the most ardent tech enthusiasts were reluctant to spend $1,500 US on a device.
There are hints that Google might be releasing a new iteration of the device, thus the story of Google Glass may not be finished yet.
23. iTunes for Apple
This is a unique instance of a product failure that, although having serious flaws, is still in use today.
iTunes was one of the most popular media players available just by virtue of the fact that Mac OS systems shipped with it already installed. It is still difficult to navigate and makes it difficult for consumers to arrange their stuff across devices, despite this.
We can all look back now that it has been phased out and wonder what iTunes could have been if it had placed more of an emphasis on usability and had a clear, user-friendly interface.
24. The Poma Xybernaut
You probably feel like you're ready for a little humor by this point in the list. We're going to talk about the Xybernaut Poma, so be ready to chuckle.
This prototype wearable computer appears to be from a dystopian technological film. One of the most incredibly awful inventions we've ever seen is the Poma, which is a hybrid of Robocop, Johnny-5, and fever dream.
Even if the Poma was innovative in 2002 and appeared to foresee several characteristics of later mobile devices, just donning it made the user appear a lot like a prop in an 80s film.
Presumably, this amazingly bizarre hardware never really took off, not in this dimension, anyhow. Nevertheless, it serves as a fantastic reminder of a crucial innovation guideline: avoid making the user appear ridiculous.
25. The Executive Osborne
This pioneering "portable" computer, weighing in at 28 pounds, was introduced in 1982 at a steep cost of $2,500 US. Even though the Executive had some amazing features for its day, it was just too expensive and too bulky to become widely used.
It was also extremely costly for the business to produce, which presented a liability for Osborne. Regretfully, the Executive was only available on the market for slightly more than a year when the company filed for bankruptcy.
The Osborne Executive demonstrates, as have Google Glass and innumerable other examples, that an innovation will struggle to get traction if it is excessively costly, regardless of how beneficial it may be.
Innovation failures in lifestyle products
Lifestyle goods are an interesting creature. When it comes to non-essential things, most consumers are in the dark about what they desire until it is presented to them.
We have a fantastic collection of lifestyle innovation fails for you to check out, ranging from yoga pants and facial toners to wearable medical equipment.
26. The Jawbone Up3
Many businesses are still attempting to understand the rise of the wearable technology market. Wearable electronics still have a lot of potential to acquire a user base because they combine fitness technology with medical diagnostic capabilities.
But some consumers seem to find the current items on the market—like the Jawbone UP3—to be a little too pricey. Although it provides a plethora of amazing sensory technologies, such as blood pressure and heartbeat analysis, it appears that the marketing is still a little wrong.
Reviews indicate that consumers are unsure about the UP3. This exemplifies another excellent innovation rule: you should be able to describe a product to others before releasing it!
27. The Water Bra by Evian
We're not making this up—this actually happened.
With a dual purpose of keeping its wearers cool and hydrated, the Evian Water Bra was a hybrid product of clothing and drink. Seem a little odd to you? That is the case.
Needless to say, this wasn't exactly a big hit with customers. Customers' shock and mockery caused the Water Bra to be quickly discontinued.
There are many things to learn from the Water Bra, but ultimately it all comes down to this: some crossover goods are just inappropriate.
28. Pants by Lululemon Astro
You would think that the idea of yoga pants would be rather easy to grasp. All you need is a fashionable design, a sturdy, comfortable fabric, right?
Nevertheless, Lululemon succeeded in releasing a product that was a touch more exposed than its customers had anticipated in the Astro Pants. As it happened, it was too exposing. We won't delve into specifics because you can probably imagine what transpired.
Not only are the Astro Pants an excellent illustration of a preventable product failure, but they're also a perfect example of how not to notify the public in advance of a product recall. Despite acknowledging the pants' flaws, Lululemon charged $92 US for the entire supply that was still in stock.
29. The Trainer for Faces
Some people desire to tone their faces in addition to their core strength, agility, and flexibility. Go inside the Face Trainer.
The Face Trainer, which is touted as a fantastic method of building facial muscles, is merely odd-looking. Similar to the Water Bra, it is hard to wear this item without seeming a little ridiculous.
Thankfully, the Face Trainer provides a useful lesson for brands worldwide: there are occasionally valid reasons why an innovation isn't available yet. It's needless, absurd, or both at the same time.
30. Pond's Toothpaste
Here's one last illustration of why a brand need to focus on its strengths.
Ponds, a well-known brand in face cream, made the decision to attempt introducing a toothpaste as well.
Unfortunately, the thought of a face cream firm releasing toothpaste was too much for consumers to handle. Even worse, they were unable to tell Pond's toothpaste apart from Colgate's, suggesting that this new product would not likely find a place in the market.
Round of lightning!
Let's wrap up with a couple wild cards now.
Although they don't cleanly fall into any one category, these latest five innovation disasters are really fascinating.
31. RJ Reynolds Tobacco Freezers
This may be the most costly failure on this list—and maybe the least required.
Tobacco firm RJ Reynolds invested $325 million in the 1980s to create the "Premier," an ostensibly smokeless cigarette that heated tobacco rather than burned it.
Apart from the dubious physics involved in the entire activity, some smokers reported that the Premier tasted like charcoal. Not unexpectedly, the corporation kept fiddling with the technology even after it was removed off the market in the early 1990s.
32. The Fruit Juicer
This invention is a prime illustration of why it's important for developers and investors to cut through the marketing and comprehend the fundamentals of a new product's technology.
Although the Juicero was advertised as a gourmet juice system, it resembled an Apple product rather than a traditional juicer. It was made to work in tandem with a smartphone and placed a strong emphasis on personalization based on dietary requirements and taste preferences.
Investors backed the system heavily, contributing more than $134 million in US dollars. Regretfully, it quickly became clear that consumers could just order the juice packets and pour them into a glass, negating the need for the pricey apparatus altogether.
33. The "For Her" line of Bic
Some product introductions just leave you shaking your head and wondering what the hell the people in charge were thinking. The 'For Her' line from Bic falls into that category quite nicely.
The ballpoint pen is the one item that virtually every demographic group on the planet can use with equal comfort and convenience. Nevertheless, the business tried its hand at releasing a pen targeted especially at females.
It goes without saying that the 'For Her' range wasn't exactly welcomed. Positively, the entire situation managed to make people laugh a little bit.
34. Perfume by Harley Davidson
This could be the greatest illustration of a product extension that was not requested.
The popular motorcycle brand Harley Davidson introduced a range of eau-de-toilette in 1994. On the surface, it makes sense: the business already produces motorcycles, t-shirts, and jackets; why not add perfume to the mix?
It turned out that there is a limit to how much this type of product diversification makes sense. The Harley Davidson scent wasn't particularly popular, as one might expect, and it was dropped in the late 1990s.
35. The ET of Atari. computer game
We felt that Atari's E.T. would serve as a fitting example to cap off this list, given the high stakes involved in innovation. computer game.
To obtain the rights to release an E.T., Atari had to pay a large sum of money. game after the critically acclaimed film. $20 million US dollars, to be exact.
Regretfully, the game was created in such a hurry that it was practically unplayable. Atari panicked after reading early unfavorable reviews from critics and players and attempted to make amends by offering the game at a steep discount, but to no avail.
Consequently, out of the 4 million cartridges produced, 2.5 million ended up in a landfill—a tragic conclusion for what has been called "the worst video game ever made." Even worse, Atari's finances were seriously jeopardized by the entire scandal.
The risks associated with innovation are aptly illustrated by this. If something goes wrong, your much-loved invention might wind up in the dumpster.
What then can you take away from these mistakes?
As entertaining as it may be to highlight these failure case studies, there's more to this research on these infamously costly - and occasionally humiliating - failures.
These 35 stories contain some common lessons that innovators should remember:
The needs of the customer come first. Don't release a product just because you can. No matter how clever or visually appealing it is, it won't succeed if there isn't a market for it. You hear us out, Life Savers Soda!
Be wary of the price tag: occasionally, a product is truly worth a high cost; just consider Apple's sales of iPhones. Sometimes, regardless of how useful a product is, consumers won't pay what a company is asking, as was the case with Google Glass.
This is a big one: make sure your product is truly ready for market. Just like with the Pinto or the Virtual Boy, things need to be thoroughly tested by companies before being released from the assembly line. If not, you might have to pay for a costly recall.
Keep an eye on the competition: JVC's aggressive promotion of the VHS through video rental stores was the sole reason why Sony's Betamax was unable to find a market. Sony may have been able to outmaneuver the competition if it had been paying closer attention to this.
Prioritize market demand above all else: Even the sexiest, most useful product must be created with the needs of the market in mind. Otherwise, it will become a niche product, similar to the Apple Newton.
Recognize what makes your current products outstanding: It's easy for a business with a successful product (like Coke or Guinness) to assume that customers will enjoy an upgraded version even more. For the most part, this is just incorrect.
Learn from the worst as well as from the best.
It's crucial for businesses searching for fresh approaches to innovation to concentrate on all the incredible instances of innovation that exist.
But why end there? Additionally, there is a lot to be learned from the failures of innovation!
We've guided you through 35 of the most illuminating examples of innovation gone wrong in this piece, covering a range of industries including lifestyle goods, food and beverage, and personal electronics.
These examples, which range from IBM's disastrous miscalculation in not comprehending the personal computing market to the peculiar case of the Microsoft Zune, all have important lessons to impart to businesses of all sizes.