Diversity MBA Magazine - April 2008 - (Page 54) Innovation Matters for Entrepreneurs by Peter Nguyen Why Every business dreams of leaving a legacy. These days, making it past your first year is tough enough. Many forward thinkers have ideas they hope will change the world, but hardly any will ever see their dreams come true. Hard work and focus is the vehicle that might get you there, but innovation is the gas necessary to keep your engine running. Boston Consulting Group recently surveyed 1,060 executives and found some convincing facts about what are driving big businesses today. Innovation remains a top strategic precedence for many companies, with 72% of executives ranking it a top-three strategic priority. More than half of the executives were dissatisfied with returns on investments in innovation. Although blue-chip CEOs may be spending huge budgets on innovation, this shouldn’t mean small businesses cannot compete with them. Small businesses can adapt and react quickly, and often don’t get toppled in the deadly process of killing innovation with “no change” attitudes from riskaverse shareholders. 54 Donald Sheelen, an innovation consultant, has created and managed over $1 billion worth of innovative products. “Innovation is the lifeblood of any organization.” he emphasizes “Without it, not only is there no growth, but inevitably a slow death.” Only two-thirds of new small businesses survive at least two years, and just 44% survive at least four years, according to a study by the U.S. Small Business Association. Here are some innovation principles that every entrepreneur should consider if they don’t want to be another startup casualty. Jump the next curve Great innovators don’t try to do things 10% better; they try to do it 10 times better. Innovation is the act of introducing something new. The power of the web means startups no longer have to build global infrastructure to reach a worldwide market. This allows for companies like Google, eBay, Facebook, and YouTube to scale their businesses unconventionally quickly. They have jumped the next curve and invented new curves to jump on. They are reorganizing how society operates in brilliant and novel ways. It is their awareness of what’s upcoming that are allowing these young entrepreneurs to be worth billions. w w w. d ive r s it y mb a ma g a z in e. c o m http://www.diversitymbamagazine.com
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