Innovate or die: The stark message for big business5 September, 2014 / Articles
Big companies that fail to innovate risk extinction. That’s the stark truth in the era of “digital disruption”.
Just look at the likes of Woolworths, Polaroid, Alta Vista, Kodak, Blockbuster, Borders… the list goes on. All steamrollered by strings of ones and noughts and changing consumer behaviour.
But why are so many big companies so bad at it?
“Typically, big companies are much more conservative than start-ups and won’t do anything that is untested or could risk future profits,” says George Deeb, managing partner at business consultancy Red Rocket Ventures.
“Innovation efforts really require a very different, more entrepreneurial risk-taking mindset.”
Jackie Fenn, a specialist in innovation at research consultancy Gartner, told the BBC: “Size can add to the challenges. A strong brand can have a fear that failure may damage its reputation.
“But you cannot afford to stay still – business is a moving escalator. The world is moving around you – customer expectations are changing, competitors are always catching up and threatening to take away your business.”