What Happens When You Don’t Innovate?
Nokia, Xerox, Kodak, Blockbuster, Microsoft; what do they all have in common? They were market leaders one day, but they failed to adapt to the rapidly changing market trends, refusing to make the necessary changes in their offerings to cope with the latest (or anticipated) demands of their customers. And so their competitors threw them out of the water with fresh and edgy products that fit the aspirations of the rising generations.
Low profit margins, fixed or low market share: If you are not innovating, it means that you are fighting your competitors over the exact same customer’s wallet; which means you are making price comparisons and stretching your distribution channels to reach out to further customers. All of this causes small profit margins and little room for growth and expansion.
Losing opportunities: Innovation isn’t always sparked from the inside. Sometimes it is an opportunity to catch. Most innovators – like entrepreneurs – saw potential in something already existing and made a different combination with to create a different end product. Take Tesla for example; Elon Musk did not “invent” the idea of an electric car. He did not even invent its parts. He just saw an opportunity of the world suffering from the consequences of fuel consumption, longing for environmentally friendly solutions in every life aspect, yet still wanting to their luxuries in life. If he hadn’t taken that opportunity, someone else would have, and he would have missed the chance to make that impact.
Missing out on great calibers: Millennials are changing the face of employment in this era. They are full of ideas and their ideas come and go fast. They want to work in a place where they are heard, where they can collaborate on every level and be a part of everything. They want their ideas to be taken seriously and given a chance. If your company doesn’t allow for – or better yet, encourage – innovation, you are missing out on hiring the best calibers of millennials, and the generations that follow. If you want to hire a great team, you need to give them a chance to shine, and this means allowing them to create, and allowing your company to innovate.
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