Why big companies can't innovate?
There’s an inverse relationship between size and innovation.
In other words,
as companies get larger, they innovate less
as companies grow, their innovation gets marginal and incremental
as companies mature (“elephants”), they reach the point of near-zero innovation
And then they vanish.
It’s not that they don’t invest in R&D. They do!
Many actually invest quite a lot of money.
And, in fact, Harvard Business Review data shows that bigger companies invest way more than smaller firms—in relative and absolute terms.
Still, their spending advantage doesn’t help them win the innovation game (in fact, this “advantage” probably hurts them, but this is for another post).
Why is this?
That’s because, contrary to what IBM’s Lou Gerstner said, elephants can’t dance!
It’s their decision making that’s causing the problem.
Big companies are just very slow.
They’re slow in processing information, in making decisions, and in taking actions.
And that makes all the difference.
The takeaway?
Here’s how you can innovate better—and faster.
📬Get in touch at ceo@knackapp.com
💰Sign-up to KnackApp