Interesting blog by Rick Smith on the Forbes.com website – “The seven deadly sins of large company innovation”. All large companies recognise that they live in a changing world and need to adapt and change to meet the new expectations and needs of their customers. But in large companies, innovation and managing change may be hard to achieve. Here, in brief, are the challenges and mistakes that Smith believes such companies typically make.
- The NPD process is started, but stopped too early, at the first sign of difficulty.
- Too much focus on the what the new product can do, and not what the customer wants.
- Death by committee.
- Use of wrong performance measures – tendency to use lagging indicators, rather than leading indicators.
- Lack of entrepreneurial culture.
- Poorly aligned reward system.
- Engaging with customers too late in the process.