Drive innovation if you want to survive
Business leaders seeking to justify the critical need to drive innovation often, and erroneously, quote Charles Darwin, whose 1859 book On the Origin of Species transformed the world. “It is not the strongest of the species that survives, nor the most intelligent, but the most adaptable to change,” according to the sage advice.
Alas, there is scant proof the English evolutionist said or wrote those famous words. Nevertheless, the paraphrased comment holds water in 2020, because organisations that fail to prioritise evolution will drown. Conversely, enterprise pioneers who embrace a proactive attitude will sail ahead of rivals by achieving operational optimisation to drive innovation.
Progressive businesses have attempted to keep pace with society and technological advancement since well before Darwin’s time. However, in this digital age, the speed of disruption cascading upon all industries has elevated the level of urgency. Enabling innovation is now imperative for survival.
“Over half of all Fortune 500 companies from 2000 no longer exist because they failed to pivot,” says Simon Marshall, founder of TBD Marketing, a Bristol firm that helps organisations identify and grasp opportunities, either to improve operational optimisation or in other markets.
He points to Nokia – founded in 1865, six years after Darwin’s masterwork was published – as an example of a company that has sought to drive innovation, but has floundered in recent times. The Finnish organisation began life as a wood pulp mill before expanding into other vertical markets, from rubber boots and tyres, to televisions and mobile phones.
Indeed, Nokia was the world’s largest mobile phone manufacturer before Apple introduced the iPhone in 2007 and triggered the smartphone revolution. Four years later, Nokia’s chief executive Stephen Elop warned the company was “standing on a burning platform”, having missed the boat.
Marshall cites another cautionary tale. “Kodak owned the patent for digital photography, but was unwilling to slay its golden goose. It stalled and, when the patent ran out, others stepped in and killed off the photography giant. Organisations need to make brave internal decisions to drive innovation and pivot.”
As markets merge and shift, taking adequate time to consider outside insights, to gain fresh perspectives and spot potential threats and opportunities quickly, is vital. “Nokia performed those three transformations in over a century, whereas Apple’s transition from iTunes downloads to Apple Music streaming took only 15 years,” says Marshall.
“Consider that Netflix initially rented physical DVDs and helped kill off Blockbuster, before launching its streaming service a decade ago. The streaming service is now itself under fire from Disney+, Apple TV+ and others looking to fragment that market again.”
Driving innovation and encouraging creative working, while sustaining operational optimisation, is perilously challenging, though.
