Too many bad ideas are being taken to market and the cost is significant.
Seventy-five percent of venture-backed companies never return cash to investors. Thirty to fifty percent of new product/service ideas fail to achieve their objectives. Bad ideas are a huge cost to organisations (human resource, R&D, supply chain and marketing). They can cause long term damage to brands. The opportunity cost of not taking a better idea forward (or going back to the drawing board sooner) is often not factored in. And the intangible costs around lost credibility and motivation from employees, investors and key stakeholders like channel partners can be substantial too.
The problem for organisations and their investors is the balance is tipped firmly in favour of taking new ideas forward, regardless of their ability to generate demand. Everybody benefits from a successful idea so few want to be the killjoy. And stakeholders, no matter how impartial they think they are, are emotionally attached to their ideas - it's not helped when most of them are involved early in the process "to get their buy-in". This extends to external agencies involved in the ideation process who also have the added pressure of keeping their clients happy. Research often tends to be tick box using inadequate metrics and benchmarks to determine success. Often times the only people willing to stand up to bad ideas are in the finance department and they may not be best qualified or equipped with the tools to understand if the underlying consumer demand is sufficient.