Many companies develop their markets based on one or a few initial innovations that appeal to customers. Over time as these markets develop, the company grows and thrives. Innovation is subsequently typically focused on line extensions or other ‘more of the same’ product variations.
However, markets are commoditized, disrupted or customers shift to alternatives. Companies are then faced with what is known as the “Innovator’s Dilemma” where successful companies put so much emphasis on current customer needs that they fail to see market, technology or customers preference shifts, and don’t plan or innovate for these shifts or future customer needs.
Companies can’t depend on previous innovations sustaining the business over the long term, especially in today’s highly competitive, disruptive and volatile markets. Companies must create a continuous cycle of sustainable innovation of differentiation for today, tomorrow and beyond to achieve exceptional long-term growth and profitability. This video reviews a typical scenario of how a company can define and maintain business processes to ensure sustainable innovation and market differentiation for long-term business success.