No matter how large or successful your company is, it's always at risk of being disrupted by an up-and-coming startup. We've seen time and again how startups can quickly disrupt an industry and takeover business from major corporations. Think of companies like Uber, Amazon, and Netflix. These started as startups and have quickly disrupted their respective industries, putting larger corporations out of business and impacting global GDP.
One of the main reasons startups can disrupt an industry is because of their nimbleness. Startups don't have the bureaucracy that comes with trying to innovate within a corporation of 1,000 plus employees. They don't need to consult with multiple departments, hold hundreds of meetings, or make sacrifices when they want to implement a new idea. They just do it.
That doesn't, however, mean corporations are left to the whim of startups when it comes to being innovative.
This is where the term "corporate innovation" comes into play. At RISE, we're committed to helping Asian corporations stay at the forefront of their industries through corporate innovation. What's important isn't just that corporations want to innovate but that they have a clear plan of how to innovate.
There are a few ways to successfully manage this. You can start by developing a team dedicated to innovation. The team needs to have the autonomy to make decisions and act quickly. Your company can also create programs to jump-start staff creativity or partner with outside organizations. Of course, there may be other innovative methods your company uses to create a culture of innovation.
No matter how you do it, corporate innovation will help your company win now and in the future. Here's how:
Here are five reasons corporate innovation will help your organization win now and in the future.
To start with, it's important for companies to think in terms of collaboration rather than disruption. Even though they're frequently the root of industry disruption, startups don't have to be your company's enemy. In fact, startups should be looked at as potential partners instead.
When you learn of a startup in your industry that's working on new, innovative ways of doing business, talk to them! You can create a win-win collaborative partnership by extending your company's resources and utilizing the startup's innovative strategies and nimble approach to business. Both parties benefit by incorporating the benefits that come from both corporate and startup business structures.
Many companies find potential startup partnerships through hackathons and pitch competitions. Creating collaborative partnerships with successful startups will help your organization now and in the future. Instead of falling behind the curve when it comes to industry innovation, you'll be there, right alongside the disrupters.
As a corporation, your company will have the resources to fall back on when experimental projects fail.
Research and Development (R&D) teams are essentially the original innovation teams. These teams are constantly searching for new and innovative ideas for companies seeking to enhance their business model.
In recent years, the concept of innovation has impacted how we view R&D teams. They are still important, though, when it comes to expanding your corporation's intellectual property to stay competitive in your market.
When it comes to developing new IP for corporations, it's best to keep the process in-house. In many cases, R&D teams are looking for ways to sustain innovation, rather than disrupt innovation. This means finding ways to enhance current products rather than overhaul them.
This is still innovation because it is approaching your existing products from a new perspective based on new information, technology, and processes. Don't make the mistake of equating innovation with disruption.
When a company creates a culture of innovation, it allows its employees to have the autonomy they need to take initiative whenever they see a new opportunity for development. By fostering this culture, you allow employees to come up with innovative and creative solutions to solve your customers' problems.
Companies are creating "intrapreneurship" programs that reward employees for their innovation. Supporting employees and creating incentives programs that reward innovation attempts can keep employees focused on finding new processes and products that will benefit the company.
It's no secret that companies around the world are turning to digital technologies. Any company that doesn't already have a digitization plan in place is going to collapse in the future as the world moves towards a digital-only platform.
Companies that are already on the pathway to complete digitization have a profit growth rate that is two to three times faster than companies that are not fully digitized. That means that if your company isn't currently on the digital frontier, it needs to be soon if you want to stay competitive within your market.
Corporations that are committed to corporate innovation are the ones who will be leading the next generation. You don't want to fall behind and be left to try to catch up as your competitors decide your industry's direction. Instead, you want to be at the forefront of your industry.
With corporate innovation, you always know what's coming. You aren't left to wait and wonder what your industry will look like in five, 10, or 20 years. You are in control of how your industry will look because you have the resources and partnerships in place to determine it for yourself. That's the real power and benefit of investing in corporate innovation now.
It's clear that investing in corporate innovation is essential for companies that want to grow and be at the forefront of their industries. After years of working with corporations, RISE has come to the conclusion that Asia is poised to become the leader in corporate innovation. This is very exciting for a lot of reasons and creates great opportunities for Asian corporations to lead the way in global communication, technology, and industry.