We get it: change is hard. For people, and corporations. When it comes to innovation, it’s especially easy to fall into the comparison trap and feel like you simply cannot keep up: everything is moving too fast, too furious.
Elon Musk is planning to implement technology that sounds out of a sci-fi movie in the very near future, UPS is embracing the possibility of drone deliveries to hospitals… It’s hard not to feel like you’ll never be able to catch up.
It’s getting faster, too. Take cars, for example. The first commercially available car navigation system became available in 1981, but just about 20 years later, Tesla came out with the first autopilot. Today, laws have been passed in 29 states allowing autonomous vehicles in the US.
It’s no wonder corporates feel overwhelmed. But real, up-to-date innovation is not some unattainable goal that only Elon Musk can hope to achieve. There are three main shifts that companies can and need to apply in order to bring their business into the future and keep up with the ever-changing tech scene. From Industrial to Digital: Disruptive and Strategic Innovation
From Industrial to Digital: Disruptive and Strategic Innovation
It’s clear that “industrial” is a thing of the past and we are well into the digital age. To survive, companies need to make the transition. Anyone who refused to adapt has become a cautionary tale for all—we’re talking glory names of the bygone era like Blockbuster, Compaq, Arcadia Group, Debenhams, HMV. If you’re still unconvinced, just remember that many business leaders believe that 50% of the Fortune 500 will disappear in a decade.
But even those who are happy to try and keep up with the times need to be careful. One common mistake? Believing “upgrades” equal “innovation.” As it happens, innovation done in increments is also a thing of the past: disruptive innovation is where corporates need to look to survive. Agility is key.
One avenue for digital innovation is M&A—partnerships where a company lets the startup community create the innovation, and then the company steps in and acquires it— “digital conglomerates,” is what they call themselves. This is agility. This is the flexibility of thought and futuristic vision. Disruptive innovation is what allowed a giant like Amazon to follow an exponential innovative path that went something like this: books – ebooks – e-commerce – cloud – film – home electronics – drones logistics – home automation. Inspiring, isn’t it? This is the kind of agile progress companies must aim for.
From Capitalism to Talentism: What Sustains Innovation
Before, it was all about capitalism. But today, in the digital era, talent is replacing capital when it comes to creativity, allowing for true innovation. Think of Facebook buying social media aggregator FriendFeed for $50m in 2009. There was only one person at that firm that Facebook was interested in (Bret Taylor, creator of Google Maps, who went on to become Facebook’s CTO), but Facebook went on to pay $4m per person for twelve people.
The truth is, you cannot be disruptive without creative talent—which is why nowadays, talent is the real currency. It’s talent that sustains innovation. Corporates need to shift their focus to culture and purpose in order to innovate in the most effective, most constructive way that will allow them to not only stay afloat in a world that turns at a mad pace but to thrive.
From Scarcity to Abundance
Where once were barriers, now there are entries—technology is a huge force making sure of that. Products and services that used to be prohibitively expensive are becoming easier to acquire. Music, once exclusively available in the format of (let’s face it) sometimes way-too-expensive records, is now at everyone’s fingertips.
Cab fare has now migrated to the more accessible realm of Uber and other share models. International calls went from being a drain to your bank account to being included in your monthly phone plan. Digital storage went from being extremely pricey to a fraction of its original cost.
The future is also looking more and more accessible: AI will more likely reduce the cost of legal work, renewable energy will reduce the cost of utilities, drones, and autonomous tech will reduce the cost of transport, blockchain is reducing the cost of accounting—the list goes on.
The Importance of Innovation in Business
But what does all of this mean for corporates who are looking to innovate and survive in an ever-changing scenario? “Disruption” is a scary word for companies. Corporates have disruption anxiety and focus on iterative innovation rather than disruptive innovation—enhancements and improvements rather than groundbreaking moves.
