A LOOK AT WHY COMPANIES FAIL TO INNOVATE AND HOW TO CHANGE THAT
We have seen numerous changes in the word of technology over the past fifteen years. Moore’s Law predicted that the technology we use can grow exponentially – it seems like more social group changes, developments, innovations, hacks, and leaks are part of its approach.
There are numerous advancements that applies to the manner in which we do business. The manner in which we style product needs to advance too.
WE HAVE SEEN ADVANCEMENT IN THE FOLLOWING:
HOW WE HAVE ADVANCED OVER THE PAST TEN YEARS
These jobs did not exist 10 years ago:
WHY DO SUCCESSFUL COMPANIES FAIL?
Christensen, a fledging professor at Harvard wanted to find out, ‘How can great firms fail’ in order to prescribe a solution to this common problem. He included companies like DEC, Xerox, and Sears in his research. His initial assumption was that these companies had somehow lost their way, but what he found was that they were following time-tested and honoured principles.
They had great management: These corporations were all market leaders and had competent, professional management. These leaders were innovative geniuses and appeared on the covers of top business publications. They were smart and well-skilled in the latest management practices, spoke at top business schools, and other CEO’s sought their advice.
They listened to their customers: The companies he studies met with customers regularly, listened to what they had to say to make products that meet their needs.
They spent heavily on R&D, while relentlessly pursuing profits: These companies were not content with the existing status quo. They pioneered innovations and invested in the newest technologies. For years they delivered superior return to their stakeholders.
So, how do these well-managed companies fail so fast?
what they did wrong, but because of what they did right. In effect, they did everything that their own institution had taught students of business to do for generations. However, they fell short of keeping up with Disruptive Innovations.
Disruptive innovators enter the market, offer sophisticated products, in a simpler form to that of traditional companies and at a lower cost. The theory of ‘disruptive innovation’ was formulated by a Harvard Business School professor, Clayton Christensen, in the 1990s. The theory explains the phenomenon where an innovation (whether it is a service, a strategy, new technology or a product), transforms an existing market characterised by complexity and high costs, by introducing simplicity, convenience, accessibility, and affordability.
To compete, traditional, old-age companies innovate faster than their customers’ true needs can evolve. Eventually they end up offering products and services that are too sophisticated, too expensive, and too complex for most customers. To maintain profits, they then tend to concentrate their efforts on customers who are willing and able to pay the highest price. This, in turn, creates an opportunity for disruptive innovators to enter the market and offer the same products, in a simpler form and lower cost to the market that was initially ignored by large companies, and eventually to everyone.
Disruptors usually introduce innovations which make it so affordable and simple that normal people can do what only the rich and very skilled could do before..
Uber, Airbnb, and Amazon are the most often quoted examples of disruption. All three have essentially displaced an existing market by providing a service which is more efficient and more cost-effective. But remember, disruption and innovation are not the same thing.
DISRUPTION VS. INNOVATION: WHAT’S THE DIFFERENCE?
People often get confused with these two. They are similar as they are both creators. Disruption uproots and changes the way we think, behave, do business, and learn. Harvard Business School professor Clayton Christensen says that a disruption displaces an existing market, industry, or technology and produces something new, more efficient, and worthwhile. It is destructive, as well as creative.
CNBC HAS COMPILED A LIST OF THE MOST DISRUPTIVE NAMES IN THE BUSINESS. A SNAPSHOT OF TODAY’S MOST INFLUENTIAL UPSTARTS:
Our disruptors share a common purpose:create businesses, products and services that are better, less expensive, more creative, useful, impactful, and scalable.