Why Big Companies Can’t Innovate
The big companies are very bad at innovation the main reason for this is the fault in designing.
There is a story behind this late in 1974. The story is from Geber’s history of the company’s growth potential which they have not undertaken the company’s growth and profitability. The executives of Gerber turned towards the market To grow your profitability you will have to fight with margin pressure. The gender has not successfully entered the decades: adult food.
The companies who are working in the sector of processing and sourcing of fruits and vegetables are lucky enough. As most of the Americans are spending a large proportion of their time on standing in grocery stores than at work. Gerber’s team realized that if they would be able to develop a quick and healthy ready to eat meal for adults then they would defiantly move towards growth and success.
When Geber launched his product for adults the product idea failed, unfortunately. But this was not surprising as developing a novel line of food items for the busy Americans equipped with distinct branding and its brand name. Gerber used a new label and named ut as Gerber’s single’s and started selling them at different places.
But the audience i.e. the working American’s were not happy with the product. All the products went back to the company from shelves of grocery stores.
Those people who warned Gerber for adopting this transformational approach it will be appropriate to consider that the company did what it was expected to do i.e. to create operational efficiency. The company aimed to undertake an innovation in the market. The success of a start-up is not measured by the earning or quarterly reports rather it is measured by the efficiency of the company in identifying the problems reveling n the market and finding suitable solutions for it. If venture capitalist belle that the entrepreneurs can identify a large problem and an interesting solution to solve it then they would find a new startup for them. This will help the business to be more efficient and earn more profit.
But it is not a way what life looks like in a mature organization when corporations reach maturity the measure of success seems to be different. Once a business s able to figure out how to solve its problems of its customers, manage operational processes. The seasonal managers steer their employees to pursue the art of discovery and test their efficiency. The employees are asked to seek their efficiency, leverage their assets and distribution channels, and listen to their target customers Such practices and policies will help you earn meaningful earnings for their company as well as the shareholders.No company would ever create a transformational growth product by asking how can we help and what we are doing already.
For the admin who is willing to create their organization and make it more innovative, we can see how Gerber can undertake innovation and how they have succeeded in this.
