The Answer to Innovation is not Startup
Talk about the 21st-century business buzzword, talk about innovation. Innovation can be defined as a process by which old norms are used to create new breakthroughs through effective developmental ideas. Since the outset of the 21st century, innovation has become an effective business tool. In this wise, it is rather surprising that most large businesses which are supposed to be at the forefront of innovation have fallen out of the innovative path and have instead left innovation to their small-scale counterparts. Today, it is generally considered that only the start-ups can sprout up innovative ideas. This, of course, is a big misnomer!
Reasons why large corporations are nonchalant toward innovation
Fear of Failure
No one wants to own a big corporation and watch it collapse due to some experimental moves. This is the menace of big corporations. Their ego keeps them on check and restrains them from any innovative move. Chief executive officers at large corporations hate to fail, probably forgetting that a big success factor in any business is risk-taking.
Too Much Focus On Sales
Large businesses today are so over focused on their sales. The product with more sales is given more attention, with such strategies as cost reduction and increased quality for that particular product meanwhile diversification and innovation remains at its barest minimum.
Waiting for Competition
Most large firms wait for competition from other firms before they do anything near creativity. Hence, when there is no competition from other firms, these companies are relaxed and continue with their normal status-quo without adding any bit of creativity or innovation to their products or services.
How to make large companies more innovative
Understand the Purpose of Innovation
The first step to being innovative is to first understand the purpose of innovation. Apart from the fact that innovation is good for business expansion, a major purpose of innovation is also to create products or services which meet human needs. The economist will make us believe that human needs are unlimited. With new technological advances, companies both large and small must strive to keep producing products and services which create better appeals to human satisfaction, in so doing, also increasing their chances of survival and sustenance in the business world.
Risks are dangerous but certainly not as dangerous as not taking risks. As renowned Facebook owner quoted:
“The biggest risk is not taking any risk… In a world that is changing really quickly, the only strategy that is guaranteed to fail, is not taking risk”- Mark Zuckerberg
In truth, business becomes interesting when risks are involved. If not for the purpose of risk-taking, the automobiles, jets, airplanes, wristwatches and so many technological advancements we enjoy today would not have come to be.
Trying New Hands
Large companies should try new hands in their work environments. Workers should occasionally be rotated within different units of a large firm. For example, workers in the marketing unit can be shifted to the auditing unit. This can go a long way to foster the acquisition of new skills, create better understanding among workers and increase the general creativity of a firm.
Innovation should not be left for the startups but large companies should endeavor to be part of the moving train of innovation as this will help in diversification. If large companies like Apple, Mercedes, Sony and the likes are currently at the forefront of innovation and development, there is no reason whatsoever for any large company to be nonchalant and redundant towards innovation. In an ever-changing global economy, innovation is a must! Be it a startup business or an established large scale business.