Bleeding Edge Definition
Bleeding edge refers to a product or service that is usually related to technology, and is used by a few customers because it is new in the market. Because they are quite new, these products or services tend to be unreliable or unpredicitive. In case, the product or service doesn’t gain acceptance from the general public, it can be cut from the market.
That’s why many firms promote their products as cutting edge rather than bleeding edge. This makes them more reliable in nature.
A Little More on What is a the Bleeding Edge
The U.S. army makes use of bleeding edge semiconductor technologies in its most exclusive warplanes, missiles, etc. followed by the ones in the development stage. Such technologies are very costly to create in the initial stage. However, the chips are usually more robust and developed than the ones used in consumer apps. And in the meanwhile, the army deal with the bugs which makes it easier to have a place in consumer applications.
The U.S. Department of Defense financed a project named the ARPANET that delivered its very first message over a network similar to internet in 1969, and other technologies like packet switching that further came in picture in the later years. During that time period, internet networking was a good example of bleeding edge technology.
If a business buys bleeding edge technology before anybody else, it receives a first-mover benefit provided the technology becomes popular later. However, the business can have the risk of investing money into something that may not operate in an effective manner. Also, there can be a risk associated with other people not purchasing the similar kind of technology, affecting the business of a supplier. Also, it can be possible that an updated technology takes place that turns out to be more successful.
Hence, a business can have tedious options to deal with. Some businesses can opt for splitting the difference, and prefer spending on leading-edge technology or conventional technologies.
Investing in Bleeding Edge Companies
Investing in bleeding edge organizations can be tedious in some sectors because firms come up with highly mature and developed products or offerings by the time firms are ready to make their products available in the market. However, small-cap firms can be an exception in this case as several among them reach out to equity markets for creating brand new or untested offerings. They may be accompanied with huge stock-based risks as there is no surety if the newly launched products will actually gain acceptance in the market. Additionally, the firms may experience weak financial position.
For instance, preclinical drug development accumulates the foremost information related to drug safety which can be relatively associated with the bleeding edge technology. During this stage, one can determine the success of a compound by analyzing some proof. However, pharma companies have little information about the consequences of a drug or the right amount of dosage for a specific patient. The drug industry involves a lot of experimenting with drugs for many years prior to planning for launching a new drug.
Reference for “Bleeding Edge”
Academics research on “Bleeding Edge”
E-Governance in India: Problems, challenges and opportunities—A futures vision, Dey, B. K. (2000). E-Governance in India: Problems, challenges and opportunities—A futures vision. Indian Journal of Public Administration, 46(3), 300-313.
From Life and Practice: Simple, Complex, and Outrageous Observations on How Clients Sense the Environment., Moskowitz, H. R., Batalvi, B., Rappaport, S. D., & Lieberman, L. E. (2014). From Life and Practice: Simple, Complex, and Outrageous Observations on How Clients Sense the Environment. Journal of Marketing & Management. Research consultants, thoroughly grounded in procedures, best practices, and the academic practice of acquiring business knowledge take for granted that clients (marketers and product developers) know their environment and continually monitor the research. Consultants think that all they have to do is summon up impressions, memories, and the job will be done. However, what looks easy is sometimes harder than first assumed. Yes, clients sense the environment; they were taught how in business school, perhaps under the topic of market research or strategy. Just what is sensing the environment? Anyone working in business knows, often from painful experience, that the business world senses and responds, but it’s just not clear how. In this paper, we dig into researchers’ world-views, expertise, and experiences to ferret out what sensing the environment means to their clients and, perhaps, even to the researchers themselves. We deal with two distinct topics. The first deals with general sensing issues of the past four+ decades the ways companies learned how to listen to the outside environment, how they are doing it now, and how it will be done in the future. The second topic describes how sensing the environment stirs up an emotional pot. The attitudes and experiences described cover much of the middle and later history of consumer research.
Where art thou, oh comprehensive financial planning software?, Most, B. W. (1997). Where art thou, oh comprehensive financial planning software?. Journal of Financial Planning, 10(3), 50.
The librarian’s guide to the consumer electronics show, Hess, M. R. (2017). The librarian’s guide to the consumer electronics show. Library Hi Tech News, 34(3), 9-11.
Corporate social responsibility: hard choices on soft issues; Pro-environmental announcements from global giants like General Electric and JPMorgan Chase have …, Marshall, J. (2005). Corporate social responsibility: hard choices on soft issues; Pro-environmental announcements from global giants like General Electric and JPMorgan Chase have spotlighted corporate social responsibility. Yet, there’s no mandate to promote such issues in the US, where some companies are clearly more proactive than others. Meanwhile, Europeans have brought” green” issues to the forefront. Financial Executive, 21(6), 44-51.