Established companies often struggle with innovation due to a fear of failure, an aversion to risk-taking, and a preference for maintaining the status quo. These firms are typically more comfortable improving existing products or services rather than developing new ones. They also tend to stick to tried-and-tested business models, which can stifle creativity and prevent the exploration of new ideas.
In contrast, start-ups are more likely to embrace innovation as they have less to lose and more to gain. They are more willing to experiment, take risks, and pivot when necessary. They are not constrained by existing business models, which allows them to think outside the box and disrupt established industries.
To foster innovation, established companies need to create an environment that encourages experimentation and tolerates failure. They should also adopt a start-up mindset by being willing to take risks, pivot when necessary, and disrupt their own business models if needed.
Innovation is not just about creating new products or services; it also involves developing new business models, processes, and ways of thinking. It requires a culture of learning, curiosity, and openness to change. By embracing these principles, established companies can overcome their innovation challenges and remain competitive in the rapidly evolving business landscape.
Go to source article: https://thinkgrowth.org/why-innovation-flounders-in-established-companies-c3651936854d