Once a company’s strategy predicts a future landscape, then it is time to innovate and adapt by positioning choices on where/how to compete. The goal of innovation is to exploit unseen possibilities/breakthrough constraints.
This is more difficult for incumbents, who could see shrinking revenue from cannibalizing with a new product. In addition, they have significant sunk costs and expertise in the old product/service. Your company needs sustainable success, with a combination of innovation, restructuring, and growth. This last one is important, as you cannot cut your way to growth…70% of value creation comes from top-line growth (Source: BCG).
9% of PespsiCo’s $65 billion in sales comes from products and brands that are less than 5 years old. That is double what it used to be.
Is your innovation sustainable?
