22. Recognizing the Value of Unsuccessful Innovations: A Case Study from the Dairy Industry in Mexico

The dairy industry is a mature industry that tends to take a traditional approach toward innovation. In recent years, however, firms in this industry have pursued more constant innovation by recognizing the value of their innovation mistakes. This chapter presents the case study of Alpura, the second-largest dairy company in Mexico, a country with a complex, competitive mix of more than 26 large domestic and international dairy companies. This case study describes the events related to the unsuccessful innovations that eventually drove an urgent change in the innovation strategy in Alpura, which was a leader in its market for several decades. Alpura’s case portrays the importance of organizations recognizing the value of their unsuccessful innovations and other innovation missteps to focus on better future innovation efforts.