In the business world, there are many examples of micro enterprises which were started with nominal investments witnessing explosive growth and success over the next few years and transforming themselves into big organizations. However, those businesses could not sustain their scorching growth rate of the past in the future years by following their same old growth strategies.
This is because some things that worked well in the past may become outdated as time passes. In other words, the business ecosystem changes continuously, and unless the business enterprises stay ahead of the pace of change by resorting to innovations, they may stop growing or go bankrupt. Therefore, an old business school maxim very aptly says, “What got you here, may not get you there.”
Unfortunately, failure to innovate has left many market leaders and successful brands limping behind their competitors. Some such companies and brands that were left behind or failed as they lacked the drive to innovate include General Motors, Kodak, Compaq, Toys R Us, Polaroid Corporation and Blockbuster Entertainment. Thus, it has now become crucial for every business enterprise to have its own innovation strategy as the world has become more technologically-oriented.
As many Fortune 500 companies have gone bankrupt, merged or become unrecognizable, entrepreneurs need to accept that remaining innovative can future-proof their businesses. So, business owners need to innovate not only to avert business failure but also to make their life much easier as the success and profitability of their ventures depend on their ability to improve products, processes and services by generating new and innovative ideas and solutions to meet the demands of customers.
Last but not least, the ability of entrepreneurs and their teams to innovate is a major factor that adds value to their company and its products and also boosts profitability. As customers are always ready to pay extra money for something that is new, well-designed, utility-oriented and qualitatively better than the rival products, business organizations that remain innovative can continue to thrive in the marketplace and will never slump or perish.