Why corporate innovation is on top of your 2022 agenda
All Innovations Turn Commodities
Every well-run company is the result of the early Radical Innovations of a Startup.
Maybe your company invented the wheel or figured out a clever way to improve it. Maybe you found a way to deliver smarter, faster, more specialised and niche or simply cheaper.
But, no matter how radical those initial innovations were, your organisation will over time shift to a Corporate Pace of Incremental Innovations, focusing on squeezing more effect, market share, profit and loyalty out of the same, - while defending what was once won.
Once so innovative, every company falls back into a "corporate pace" and on a trajectory to become commodity-based, competing mainly on price.
Corporate Innovation in Multi-Speed
Of course, you should not give up your Core Business or stop doing incremental innovations to expand and defend it. You're making money!
But, if you want to be the creative force in the market, setting expectations and price, you also need a Radical Innovation Setup.
You need to run a Startup Mentality setup of fast-paced radical innovations, that advance over normal startups by extracting competitive advantages from the financial muscle, strong customer relationships, technologies, products, back-office or sales force of the Core Company.
In return, your Core Company maintains its focus on a profitable steady course, while preparing to either integrate profitable startups or new spin-off technologies into its core - or partner up with the new player your Innovation Strategy spun out on the market.
Finally, it's the nature of radical innovations, that some will fail and they should then do so as fast as possible. That's why we keep them at arms-length, to allow the Core Company to plan and optimise for the established marketplace.