We’ve all seen this or perhaps even worked in an organization like this. The organization some years ago arrived at their magic formula and became successful. Since they achieved that level of success they have not materially changed their offering much all. The support of the status quo essentially welcomed competitors to swoop in and run off with their customers.
Resistance to innovation must be rooted in culture. Take Kodak for example. Kodak R&D invented the digital camera decades before digital cameras were commercially sold; Kodak had the technology. The film business was a cash cow; Kodak had the capital to invest. Customer research even told them the market would move to digital photography; Kodak knew film was going away, they even knew when. All of these indicators told Kodak execs they had to get into digital to remain relevant. But their culture of optimization couldn’t walk away from the film business. Many business experts studying Kodak’s demise blame it on organizational mindset, or culture.
See two important ways to change your culture to allow more innovation on Jamie Notter’s blog.
- 5 Components of a culture of innovation
- Marketing success is determined by organizational culture