Comments on: Startup 119: Why Startup Innovation Kicks Corporate Booty

By: Johnny B

Johnny B — Thu, 15 Oct 2009 01:19:11 +0000

Agreed. Large company’s many times are frozen by fear, or the Innovator’s Dilemma. Only startup have the freedom to reinvent, and create something truly innovative. In fact, I believe the VC community serves an important purpose – funding R&D and Innovation. It is no wonder many of these companies are acquired. They can use VC $$ to create innovation (in product, and business models) that then be careful merged into a successful giant.

By: Startup 121: Lessons from Rice Krispies for the Recession | Joseph Ansanelli

Thu, 23 Apr 2009 23:19:38 +0000

[...] of companies but is something most don’t do well or at all. And it’s another reason why startups kick corporate booty. Let’s face it, startups are, well, [...]

By: Why Traditional Media Companies Cannot Innovate : Beyond Search

Why Traditional Media Companies Cannot Innovate : Beyond Search — Thu, 09 Apr 2009 05:03:52 +0000

[...] called “Startup #119: Why Startup Innovation Kicks Corporate Booty” by Joseph Ansanelli here. I found this write up quite good. I downloaded it and printed it out. I think I will be able to [...]

By: joseph

joseph — Wed, 08 Apr 2009 18:30:06 +0000

it is amazing how stifling corporations can be simply from the work environment. it’s because they end up having a facilities organization that is only measured on costs and not at all on business success and employee attrition. it’s the proverbial “butt in seats” approach to offices.

and HR is just as bad in that it’s cookie cutter based on their HR manuals.

you might want to check out a post on people I wrote and the importance of situational leadership. http://www.ansanelli.com/blog/?p=389 thanks for the comments.

By: joseph

joseph — Wed, 08 Apr 2009 18:27:34 +0000

one would think that large companies have an advantage, but in many cases what you listed as strengths are weaknesses. For example, large sales force with deep customer relationships tend to not want to take risks on new and untested products with their customers to protect their “annuity” businesses.

By: RESEARCHWOMAN

RESEARCHWOMAN — Tue, 07 Apr 2009 21:54:32 +0000

I agree that large corporations have difficulty in fostering startups. However, I think that one of the reasons is the corporation mentality that forces people to be corporate drones in the daily grind of commuting to/from work, spending an 9-5 hour day(facetime) in a small and confined space, and concentrating on the task with no communication with friends or family. How can a person think outside a box when one is in a box?

By: phil beisel

phil beisel — Mon, 06 Apr 2009 22:37:16 +0000

The condition that Joseph speaks about that prevents large enterprises from innovation might be better classified as an immutable law of nature. The second I began reading, I was thinking about the inherent resistance to any innovation within an enterprise as a means to “false” survival. If the innovation threatens existing businesses/business models, it will never see the light of day. The only exceptions to the law are 1) acquisition (the Cisco model) or 2) an intrinsic business methodology that might be called ‘additive innovation’. Additive innovation is the model practiced by 3M, where new innovation can come about because it does not threaten existing businesses within. (Even within 3M if a product were to threaten a bread and butter product like sticky notes, I think it too would fail to see the light of day.)

I say “false” survival because in truth the survival of the enterprise is in fact threatened by the innovation it fails to foster. Large companies die too (at least and hopefully forever in this country). If you look at the DJIA (aka the “Dow 30”, a collection of the top 30 largest and most widely held public companies) you will see “change” before your very eyes. In the early days the Dow was dominated by railroads, but no longer. With the exception of GE, there is no constant entity as part of the Dow. Anyone remember U.S. Leather Company?

Perhaps the only immutable reality in all of this is that change is the constant. Recall “Remy” (Disney’s Ratatouille/2007) responding to his father pronouncement “you can’t change nature”, exclaims “change is nature”.

By: KFM

KFM — Mon, 06 Apr 2009 21:33:24 +0000

I fully agree that large companies seems to have trouble innovating. That said, there are many things that large companies have at their disposal which small companies do not. For example:
- Large sales forces with deep customer relationships
- Pre-existing contract with customers
- Solid relationships with the analyst community
- Established marketing outlets
- In-house engineering talent

.. etc.

Provided a large company found a way to leverage these things without killing true innovation, shouldn’t they be in a better position to launch a successful new venture then a bunch of guys in a garage? If done right, shouldn’t a truly innovative and well supported incubation team, housed inside a large company, have a hit rate o well over 20%?