This is the first of a series weekly posts where I will answer a few common questions about innovation. Please feel free to add your own response. Also, if you have any questions you think we should discuss, let me know.
There are many reasons why large companies don’t innovate. But to simplify, it is because most companies are designed to execute, not innovate.
There are a few that do “get” innovation. But, traditionally companies are founded to make money as an outcome, not to last. And, even if companies make money and have both resources and assets, it doesn’t mean that they will innovate. To innovate, you must change. And to change, is something most don’t plan to do or are willing to do.
Most organizations, are not founded with this in mind. I think there is this romantic mindset that you will start off making donuts and keep doing donuts for the rest of your life.
There is nothing wrong with doing one thing for the rest of your life, but there are instances where an innovation changes or replaces the “how” and the “what” of what you started out doing. Donuts may exist forever, but their form, how they are created, delivered and eaten may change.
That is, what I believe, most ignore. There are many ways your business could/might/will change. Change is what we need to embrace and continually strive for.
Your turn, why do you think innovation is so hard for large companies?