These days, our world constantly changes. Therefore, innovation is the most essential tools for companies to stay relevant. However, many companies fail to innovate.
Take traditional banks as an example. There are hundreds of big-tech and heavily subsidized digital banks threaten to take their market. Thus, they need to consider why despite investing large amounts of money their innovation initiatives still fall flat.
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Many times, that happen because banks and large companies are obsessed with adopting current popular practices. Many of them attempt to imitate the strategies of other successful organizations. Yet, they do not consider how those strategies would fit into their own unique situation.
They always tell themselves that they need to operate like startups. However, many leaders fail to realize that many startups operate under different circumstances. If they force to use the same strategy, that would bring a bigger challenge for large companies to imitate.
Cited from Fintech News, in order to be truly innovative, big companies need to consider these things.
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Starting to Have The Right Culture
The essential point is companies must not be afraid to fail. Innovation is driven by a mindset of learning to fail fast. Besides, that mindset will allow them to grow from failures and creating a truly unique and exceptional customer experience. Consequently, that drives impact and helps the company achieve its goals.
Good leaders know that failures are necessary for growth. Yet, great leaders know that embracing failures don’t necessarily mean that it is acceptable to keep failing. Leaders need to help their team to navigate. They need to help the employee to know when to push a project and when to pull the plug and spend their time on a different idea.
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An innovation strategy and system
Innovation is of course just not as simple as trial and error process. It is a process that needs to be managed. Companies need to follow a disciplined approach in order to succeed in innovation.
To get that, they need to focus on three questions. The first is what value they try to create. They need to always hold onto that value. The second is how they will use the value in creating their innovation. The last is how they define the type of innovation they want to create. There are three types of innovation. They are routine innovation, disruptive innovation, and radical innovation.
