Innovate or Die
I had a conversation with a company the other day who they said that their strategy was to focus on their core product line. It was disconcerting, but how do you get someone to realize the importance of innovation?
I thought about explaining that they need to look at their business in advertising terms – reach and frequency. Or perhaps to look at trial vs. repeat business. After all, isn't that a key function of innovation? To come up with new stuff for your loyal customers to buy from you? And, of course, to attract new customers?
In the 2010 IBM Global CEO Study , CEOs said that their companies received between 15 and 20% of their revenue generated from new sources over the past five years, and yet expect it to increase to 25 to 30% of revenue in the next five years. 3M, a historical leader in innovation, draws 25% of their sales from products released in the past five years. While that number is down from 33%, (see DrawSuccess blog entitled: Innovation vs. Efficiency or Innovation AND Efficiency), it still begs the question:
What % of your company's sales in five years
will come from products you're not selling today?
The next question, of course, is:
Where are the ideas
for new products, services and programs
going to come from?
I went online and searched, "Innovate or Die" and saw the following presentation on Slideshare, and thought I'd spread the word. Enjoy! And feel free to comment.
To request a copy of the 2010 IBM Global CEO Study, go to: http://www-935.ibm.com/services/us/ceo/ceostudy2010/index.html.