As a business and management consultant, I have seen how business owners struggle to adapt to new ways of running a profitable company. Because they are used to the old system, forcing them to abide by the new system is like pouring water on a rock.
But the truth is that, any company that refuses to consistently innovate will soon be out of business. Any organisation, whether church or a non-governmental organisation that refuses to innovate will be relegated to the dustbin of history.
Why some business owners hate change and innovation
Every business owner is taught the importance of customers and the importance of serving and retaining them. Diligent serving of exisiting customers, however, has innovation–impeding consequences like:
1. Existing customers often discourage innovation by their vendors.
For example, a major technical advance in computing can jeopardize the investments customers have made in existing hardware, software, and training.
Consequently, these customers often urge vendors to continue supplying them with parts and upgrades– in effect, to stay in their old businesses.
Some people call this phenomenon the “tyranny of served markets.” Companies that focuses on giving customers what they want concentrate on gradual innovations to existing products, and abandon the invention of truly breakthrough products and services.
Eventually, these same customers will abandon their vendors and switch their business to the innovative rivals. It has happened to many businesses.
Business owners usually abandon innovations because a particular system worked or because a particular product is selling fast. They forgot that nothing lasts forever.
While they are married to the old ways of running their companies, their rivals are looking for ways to outwit them. That is why some popular products are disappearing from the market.
The success that propels growth creates a powerful impulse toward complacency and self-satisfaction. It tricks people into believing that if they simply continue doing what they are doing, all will be well.
Richard Pascle described this phenomenon many years ago as the paradox of success. Success, in his view, plants the seeds of eventual failure.
When faced with debilitating competition, the decision of many successful companies is to invest still further in the technology that made them successful in the first place, instead of creating other successful products and services.
According to Harvard University, “this was observed when steam ships challenged makers of sailing ships, when Thomas Edison’s electric lighting systems challenged the gas illumination companies in the late 1800s, and when jet engines challenges piston-driven aircraft engines in the late 1940s.
The established companies threatened by these innovations continued to invest in and marginally improve their mature technologies even as the new ones were becoming better and cheaper by the month.”
The truth is that success can become your greatest enemy. That you are succeeding today doesn’t mean you will keep succeeding forever. Competitors are always searching for new ways to get rid of your products and services and dominate the market.
That is why you must not miss the forthcoming Business and Career Conference holding at Transcorp Hilton hotel, Abuja, on the 14th September, 2019.
I will share time-tested secrets on how to dominate that market, and keep dominating it for a long time. Book your seat right now. Simply click this link bit.ly/322fxVj and follow instructions.
For more information about the conference, how to order my books and audio programs, kindly call Godwin on 07032681154.
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