Why Big Companies Are Losing When It Comes To Disruptive Innovation

Big companies have money and resources, so why is it challenging for them to excel in disruptive innovation? The innovator's dilemma arises when companies are dominant and have a need to protect their market. Focusing on sustaining innovation instead of disruptive innovation leads to missed opportunities, as seen with BlackBerry, Nokia, and others. However, it's not about failing to execute but lacking an innovation strategy that aligns diverse groups, defines objectives, and focuses efforts. Companies can't copy the innovation strategy of others, and they need to establish their unique structure, KPIs, and management. They can bridge the Lean Startups methodology with corporate innovation by distributing their innovation to three horizons: mature, rapidly growing, and emerging businesses, while separating resources that go into sustaining and disruptive innovation. They must also apply best practices and have lightweight governance to keep the balance between four zones: performance, productivity, incubation, and transformation.