Madonna had her 15 minutes of fame in the 1980’s. Yet today, she is still famous. With the name of her sixth concert tour being Reinvention!, she said, “You have to reinvent to stay in the game!”
79% of Fortune 500 CEO’s ranked innovation as a top three corporate priority. As companies are facing slow growth in their core businesses, they are now looking to expand into adjacent markets (Source: BCG).
How do they reinvent?
- Embrace commitment, a threshold for risk, and bold decisions
- Address the customer value proposition…understand what customers want/need
- Identify and evaluate existing assets
Some tactical steps include:
- Micro-kitchens in every building spark conversation/ideas
- Lean methods, originally developed for manufacturing, are now applied to R&D and new product development (Source: BCG)
- Mine big data/social networks for ideas
- Firms that offer more-generous stock options to non-executive employees are more innovative, as employees have more reason to innovate when their incentives are tied to the long-term success of the firm (Source: Xin Chang at Nanyang Business School)
Netflix reinvented itself from a DVD rental company to an entertainment-streaming provider of their own content. Apple transitioned from a computer manufacturer to a music/lifestyle company. John Deere used to sell tractors/farm equipment and now provides online services for farmers. Amazon’s convenient access to a wide book selection has now expanded way beyond books!
“Innovation distinguishes between a leader and a follower.” — Steve Jobs
How do you reinvent your business?
