Maxwell Wessel explains “Why Big Companies Can’t Innovate”
in his September 2012 blog post on HBR Blog Network. In fact, Wessel
articulates that big companies are designed to fail at innovation. I found
there were three main criteria describing why big companies fail at innovation.
I would agree with Wessel’s analysis that differing success
metrics between entrepreneurs and mature corporations provide the number one
reason for failed innovation attempts in big corporations. In my research, I
found several examples of real companies’ examples of both failed and
successful innovation attempts.
Failed Innovation Attempts at Large Corporations
Most of the failed attempts summarized below failed due to a
late-to-market approach to innovation and a lack of standardized and continuous
improvement methods rather than a one-time fix. In all three cases, these
companies were subject to the technological revolution of the internet and the
ever-expanding product offerings available online.
Successful Innovation Attempts at Large Corporations
A common theme from successfully innovated companies is a
financially supported innovation plan from the top-down. These corporations
prioritize innovation and value the input of their employees, empowering
innovation from within.
I read an interesting article on Fast Company called “4
Innovation Strategies From Big Companies That Act Like Startups” by Soren
Kaplan (http://www.fastcodesign.com/1670960/4-innovation-strategies-from-big-companies-that-act-like-startups).
Like Wessel, Kaplan suggests that successful corporations think like start-ups.
This parallel illustrates the paradigm shift to entrepreneurial thinking for
innovative success. The four strategies highlighted by Kaplan are summarized
below.
Interesting comments Amanda. I like your examples of successful and unsuccessful companies with innovation. I remember when Kodak was successful. If only they had analyzed the market better and taken advantage of innovative opportunities, they might still be where they were in the 80's and 90's.
ReplyDeleteFantastic supporting examples to prove the point that big companies can successfully innovate!
ReplyDeleteAmanda,
ReplyDeleteI am following the happenings at Yahoo with new CEO Marisa Mayer. It was refreshing to see the Yahoo board make a bold move to bring on a young ambitious executive with no previous experience to turn things around at Yahoo. It remains to be seen if Mayer can change things around at Yahoo, however her first move to bring on Max Levchin is a positive move. As Max explained, Mayer wants to bring in the
entrepreneurial spirit into Yahoo which is why she asked him to join the board. As you explained in your blog, it is that start-up mentality which is required.
Good company examples. Love the graphics support. I take it you are a designer? If so, I'd love to talk. I'm looking for someone who can create infographics for social media distribution. (Pssst! Call me :-)
ReplyDelete