Friday, March 8, 2013

Why Big Companies Can't Innovate? - HBR Article





Why Big Companies Can't Innovate?

Here is an HBR article related to it. Essentially, there are three key factors (from the article):

  1. The focus of an established firm is to execute an existing business model whereas the  the main job of a start-up is to search for a workable business model, to find the right match between customer needs and what the company can profitably offer. 
  2. Discovering a new business model is inherently risky, and is far more likely to fail than to succeed. 
  3. People who are best suited to search for new business models and conduct iterative experiments usually are not the same managers who succeed at running existing business units .





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