“Innovation distinguishes between a leader and a follower.” — Steve Jobs
The Fast Follower vs. The Innovator: Understanding the Difference and How to Succeed at Each
In today’s fast-paced business environment, the path to success often lies in choosing between being an innovator or a fast follower. While both approaches can lead to market leadership, they require different strategies, mindsets, and risk tolerances. Here, we’ll break down what it means to be a fast follower versus an innovator, explore real-world examples of each, and discuss the trade-offs and best practices for thriving with either approach.
What is a Fast Follower?
A fast follower is a company or individual who closely observes innovations from other market leaders, learns from their successes (and mistakes), and quickly adapts or improves upon these innovations to deliver their own version to the market. Fast followers are adept at reducing the risks that often accompany new products, leveraging established demand, and capitalizing on lessons learned from early adopters.Example: Samsung is a classic example of a fast follower in the tech industry. Rather than introducing groundbreaking concepts, Samsung has often improved upon innovations pioneered by others, notably Apple. Through competitive pricing, rapid adaptation, and incremental improvements, Samsung has effectively captured significant market share without bearing the initial high risks.
Characteristics of Fast Followers
- Lower Risk: They learn from innovators’ successes and mistakes, reducing the risk of market rejection.
- Faster Time-to-Market: They avoid lengthy R&D processes by leveraging existing product frameworks and focusing on enhancements.
- Cost-Effective: By avoiding the high costs of innovation, fast followers can deliver competitively priced products.
What is an Innovator?
An innovator is a trailblazer who creates entirely new products, services, or business models. Innovators take on significant risks in exploring unknown territories, often driven by a vision that disrupts the current market and redefines industries. Success requires a high tolerance for ambiguity, a robust R&D investment, and a culture that embraces experimentation and, sometimes, failure.
Example: Tesla is a modern example of an innovator in the electric vehicle (EV) market. Tesla took significant risks in building an electric car with the vision of disrupting the automotive industry. By pushing boundaries, it created demand for EVs that were previously considered a niche market, paving the way for competitors to follow.
Characteristics of Innovators
- High Risk, High Reward: Innovators gamble on unproven markets and technologies, with the potential for high rewards if they succeed.
- First-Mover Advantage: They often enjoy the prestige of being the original creators, which can lead to strong brand loyalty and pricing power.
- Resource-Intensive: Innovation requires significant R&D investments, a unique vision, and the resilience to manage high-risk projects.
Trade-Offs: Fast Follower vs. Innovator
Each approach has distinct trade-offs, impacting a company’s strategy, risk exposure, and potential market position.
| Trait | Fast Follower | Innovator |
| Risk Level | Lower; benefits from established market insights | High; unproven market with unknown challenges |
| Time-to-Market | Faster; builds on existing products | Longer; requires significant R&D |
| Costs | Lower; reduced R&D and marketing costs | Higher; extensive investment in development |
| Market Position | Competes through pricing and incremental improvements | Leads with new, often game-changing offerings |
| Customer Loyalty | Limited; less brand differentiation | Strong; first-mover advantage, brand loyalty |
How to Succeed as a Fast Follower
Being a successful fast follower involves more than just waiting for the innovators to make the first move. To be effective, fast followers must be highly observant, agile, and efficient at rapid execution.
- Market Vigilance: Constantly monitor industry trends, customer feedback, and emerging technologies. The sooner a fast follower identifies a new trend, the quicker they can develop a competitive offering.
- Lean Development: Fast followers succeed by reducing development time. Lean, agile development practices help companies quickly refine and release products based on the innovator’s groundwork.
- Focus on Improvement, Not Replication: Fast followers shouldn’t just copy; they should find ways to improve upon the original product. This could mean enhancing features, offering a more affordable alternative, or creating a better user experience.
- Cost Efficiency: Use cost savings from reduced R&D to your advantage. Fast followers can often offer more competitive pricing than innovators, which can be a compelling draw for consumers.
How to Succeed as an Innovator
Innovation isn’t for the faint of heart. It requires not only groundbreaking ideas but also a culture and structure that supports and sustains creativity and risk-taking.
- Visionary Leadership: Successful innovation stems from a strong vision. Leaders should inspire teams with a clear purpose, fostering a culture of creativity and pushing the boundaries of what’s possible.
- Encourage Experimentation: Foster a culture where failure is an accepted part of the process. Innovation requires trying new things, so an environment that supports calculated risks is essential.
- Invest in R&D: Innovation often involves deep technical challenges and novel solutions. Allocating a substantial budget for R&D and talent acquisition is crucial to remain ahead of the curve.
- Focus on Differentiation and Value Creation: For innovators, the key is to offer something truly unique that solves a problem or meets a need in a way that hasn’t been done before. This leads to loyal customer bases willing to pay a premium for innovative products.
Wrapping up…
The decision to be a fast follower or an innovator should align with your organization’s strengths, resources, and market position. Innovators thrive in environments where the risk is supported by a strong vision, ample resources, and a high tolerance for failure. On the other hand, fast followers often excel in markets where consumer demand is proven, allowing them to focus on executing efficiently and improving on what’s already been done.
Both strategies can lead to significant success if executed thoughtfully. The key is understanding where your organization can create the most value, whether by breaking new ground or by refining and advancing the innovations of others.
