lifespan of major corporations has been declining at an alarming rate.
by Clay Christensen'published a report estimating that at the current rate
of churn, 75% of the S&P
500 just over a decade from now will be companies we've probably never heard of.
wonder, then, that many of the world's biggest and oldest companies have been scrambling
to emulate the start-ups potentially poised to supplant them.
we also know that most such efforts aren't meeting expectations, primarily because
these big, successful corporations can't seem to get out of their own way.
entrepreneur and co-author of 'The Startup Owner's Manual''who says what has made great corporations great may today
be their greatest liability.
Century,' Blank told me in an interview.
disrupted,' he added. 'The challenge of innovation in the 21st Century
has a whole set of issues that the old business school books or even the current
ones don't even begin to describe.'
continuous innovation,' Blank emphasized. 'Not innovation by exception, but
innovation by design.'
how. The bad news is that we are just beginning to understand how,' he noted.
Development Methodology is credited with igniting the Lean Start-Up movement
popularized by his most famous pupil, Eric Ries'says the problem is that the
competencies necessary to behave like a start-up run counter to the cultures of most
large, successful corporations.
efficiency,' said Blank. 'But innovation requires very different processes and
procedures and incentives than execution.'
strangle innovation on day one via the existing processes,' he said.
proliferation of skunkworks and other initiatives designed to run independent
from and parallel to their existing operations.
Blank discusses why so many attempts to act like start-ups fail and what companies need to do differently to achieve a state of continuous innovation in an era of continuous disruption.
Blank will be delivering the keynote, 'Dealing with Disruptive Innovation,' at the
13th Annual Front End of Innovation taking place May 18-20 in Boston.
information or to register for FEI 2015, please visit www.frontendofinnovation.com
ABOUT THE AUTHOR
Marc Dresner is IIR USA's sr. editor and special communication project lead. He is the former executive editor of Research Business Report, a publication for market research and consumer insights professionals. He may be reached at email@example.com. Follow him @mdrezz.