Why is corporate innovation so important? Think about the taxi business. Think about all those yellow cabs that every city had.
Now think about Uber and Lyft. What happened? The past met the future and the past was lost.
That’s happening more and more as lean, agile start-ups use talent and the latest technology to meet consumer demand for the most convenient products and services.
For years, major companies didn’t worry about change or innovation. They did what they did well enough to survive, so why change?
Why? Take a look at the Fortune 500. Since 2000, 52% of the companies listed have ceased to exist – sold, bankrupt, or dissolved.
Read on to find out how you can avoid the same fate by following some key principles.
Corporate Innovation Starts at the Top
It won’t succeed unless the gal or guy at the top is visibly making corporate development a key pillar of the company’s strategy. Putting innovation in the empty room in the basement and closing the door is doomed to failure.
The CEO needs to invest company time and money in innovation and to highlight its importance internally and externally.
Know What You Mean
Define successful innovation for your company and be consistent. It’s a fact that very few inventions ever make money. Inventions alone aren’t innovation.
What you are aiming for are successful product and service innovations that make more money than they cost to develop. Ideally, a lot more.
Don’t Put All Your Eggs in One Basket
Think more about corporate innovation as a portfolio than as a project. You want a careful balance between high-risk/high-gain and low-risk/low-gain initiatives.
In the same way, your corporate development should be working on short and long-term innovations. In other words, balance the risks and don’t put all your eggs in one basket.
Innovation isn’t a Project
Don’t think of innovation as a one-time project. As CEO, it’s your job to make innovation just as important as everything else in your company from human resources to finance and production.
Innovation needs resources: budget, management, talent acquisition, planning, and succession. Successful innovation is fully incorporated into the company.
Mix it Up
Expecting the same people who can identify an innovation opportunity to bring it to market is unrealistic. Instead, staff and support your business development with a range of talents.
First, of course, you need folks who can research and identify potential new products and services. Next, you need people with the talent and skills to turn those opportunities into viable business models.
Finally, it takes a different skill set to ramp up innovation and develop a new company or department.
Bottom Line: Change Isn’t an Option
Successful companies welcome and embrace change and constantly seek out new opportunities. These companies are fully integrating corporate innovation into their day-to-day operation.
From the CEO down, innovation is welcomed and fully supported with time, talent and investment. Isn’t it time your company did the same?
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