Innovation is the single biggest reason why some companies are successful. Think Apple.
Lack of innovation is why many companies fail. Think Kodak.
So why does this happen? The last 100 years have many examples of successful businesses or brands losing their competitive edge, and ending in failure or bankruptcy. There seems to be one underlying factor in the companies that failed; they believed that their product or service had an unlimited shelf life. Successful innovation is based on the urge to develop new products or services that are different or game changing in their market. Innovation leads to competitive advantage, and allows for unique brand positioning and differentiation. It can rapidly build brand reputation and equity, increase sales and enhance profitability.
So why do companies fail to innovate?
- COMPLACENCY OR FEAR OF FAILURE
- FAILURE TO RECOGNIZE MARKET CHANGES OR TRENDS
- INCREMENTAL OR TACTICAL TINKERING VERSUS STRATEGIC RE FOCUS
- RISK ADVERSE CULTURE
- BUSINESS ORGANIZATION STRUCTURE AND TERRITORIALITY
- LACK OF PROCESS
- TRAINING AND COACHING
- INNOVATIONS NEED EARLY ADOPTERS AND INNOVATORS