I recently came across a fascinating article in The Financial Times titled “Why Big Companies Squander Opportunity.” The author explores why large, successful corporations do not take advantage of innovation that ultimately displaces them.
The article includes interesting theories from a number of innovation experts who report that companies are rarely blindsided by innovation. Ironically, many companies see disruption in the industry coming before anyone else. However, they are unable to react to the possible changes because internal factors either discount the potential of the disruption or render the company incapable of exploiting or defending against these new innovations.
My take on this article? It is likely not a single factor that causes market leaders from pursuing disruptive innovation but instead multiple factors. These, when combined, prevent companies from accepting and effectively acting on the threat and opportunities presented by disruptive innovation.
You can click here to read the article for your yourself. I hope you find it as thought provoking as I did.