Industries are transforming at such a rapid rate.
But why are a large number of large corporations falling behind and failing to innovate?
Earlier this year, Innovation Leader, asked over 270 corporate leaders about the what they think are the biggest obstacles to innovation in large companies.
The top 3 responses by the leaders were:
1) Lack of alignment between business units
Large companies face a major hurdle to align all the different business units, as each unit feels a sense of ownership for innovation within their specific unit.
Solution: CEOs should give each business unit ownership of innovation within their area, whilst still ensuring that the objective is consistent throughout the business.
2) Lack of innovative culture
Large companies are typically built on a foundation of operational excellence and predictable growth. People fear change and are often threatened by new ideas.
Solution: Recruit dynamic and agile individuals that are resilient and embrace change.
3) Inability to spot and adapt to future trends
Large companies are often guilty of becoming complacent.
All too often, large companies become settled and stop looking forward.
It is also very challenging for large companies to build an agile workforce that can adapt to the various market changes.
Solution: Within each business area, build small startups that are focused on assessing future trends and ensuring their units can adapt accordingly.