Despite grand ambitions, most businesses struggle to execute meaningful innovation, and even fewer manage to sustain it over time. So why is it so difficult to get right? And more importantly, how can companies fix this problem?
To answer these questions, we need to look at real-world examples of innovation successes and failures. By understanding what works and what doesn’t, businesses can move beyond empty rhetoric and start building a culture where innovation thrives.
One of the biggest misconceptions about innovation is that it’s driven by lone geniuses—visionary leaders who single-handedly revolutionise industries. This narrative is attractive but misleading. Innovation is almost always a collective effort. Companies that fail to recognise this often place too much emphasis on individual brilliance rather than creating systems that encourage collaborative creativity.
Take Apple, for example. Steve Jobs is often credited as the mastermind behind the company’s most groundbreaking products, but Apple’s success was built on teams working together. The development of the iPhone, for instance, was a massive effort involving designers, engineers, supply chain experts, and software developers all pushing the boundaries of what was possible. Without this structured collaboration, even Jobs’ vision would have remained just that—a vision.
On the flip side, consider Xerox PARC. In the 1970s, its research lab developed groundbreaking technologies such as the graphical user interface, the mouse, and Ethernet networking. Yet Xerox failed to capitalise on these innovations, allowing companies like Apple and Microsoft to take the lead. Why? Because despite having individual geniuses within its ranks, Xerox lacked the structure and leadership to translate ideas into marketable products.
Another major reason companies fail at innovation is a deep-seated fear of failure. Many businesses, particularly large and established ones, operate under intense pressure to deliver short-term results. This focus on quarterly earnings and immediate returns discourages risk-taking and experimentation—both of which are essential for innovation.
Amazon, on the other hand, has built its success on embracing failure as part of the innovation process. Jeff Bezos has often spoken about how the company’s willingness to experiment, and sometimes fail, has been critical to its ability to stay ahead. The Fire Phone was a disastrous failure, but rather than retreating, Amazon used the lessons learned to develop Alexa and its Echo line of smart speakers—an innovation that became a dominant force in the smart home market.
Contrast this with Blockbuster, which had the opportunity to acquire Netflix in the early 2000s but failed to see the potential of the streaming model. The company was so focused on its existing rental business that it dismissed the need to innovate. As a result, it collapsed while Netflix soared.
Corporate bureaucracy is one of the biggest killers of innovation. In many organisations, new ideas must pass through layers of approval, risk assessments, and committees before they even have a chance to be tested. This slows down the process and often stifles creativity before it can take shape.
Tesla offers a striking counterexample. Unlike traditional automakers bogged down by legacy systems and bureaucratic inertia, Tesla operates with a startup mentality, even as a large company. The ability to rapidly iterate and bring new ideas to market has allowed Tesla to lead the electric vehicle revolution while other car manufacturers are still playing catch-up.
Kodak, on the other hand, is a cautionary tale. The company actually invented the digital camera in the 1970s but failed to act on it because it feared cannibalising its film business. Instead of embracing change, Kodak let bureaucracy and internal resistance dictate its path, leading to its decline as digital photography took over.
So, what can companies do to avoid these pitfalls? The key is to cultivate a culture that encourages risk-taking, experimentation, and adaptability.
Often, excessive bureaucracy, slow decision-making, and fear of risk prevent fresh ideas from taking shape. Businesses should:
Leadership plays a crucial role in setting the tone for innovation. When leaders embrace change and encourage fresh thinking, employees follow suit. To foster this:
Innovation requires an environment where failure is seen as a learning opportunity rather than a setback. Amazon, for example, embraces calculated risks, allowing its employees to experiment with new concepts. Companies can foster this by:
Innovation thrives when employees are exposed to new ideas, skills, and technologies. To keep teams engaged and forward-thinking, businesses should:
Employees need to feel that their ideas are valued. Businesses that recognise and reward innovative thinking see greater engagement. Strategies to achieve this include:
Fixing workplace innovation isn’t about luck—it’s about cultivating an environment where creativity flourishes. By removing barriers, embracing experimentation, and fostering collaboration, businesses can turn innovation into a sustainable, driving force for success.
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