Fearless Innovation. Alex Goryachev
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an online platform where consumers were encouraged to share, and vote for, additions to the company’s product line. This feedback created a more customer-centric experience, up-to-date with current trends, and resulted in new lines such as LEGO Architecture, popular with adults, and LEGO friends, which turned out to be one of LEGO’s biggest successes in the company’s history.49
The company also began developing partnerships and strategic alliances with Hollywood movie companies. Where Star Wars action figures were once a competitor, they now had their own line. Taking a more holistic view of what their customers wanted, and what LEGO could become, they started opening amusement parks and exhibitions. These were big, bold steps, but even seemingly small changes like a more user-friendly website contributed to their success.
They were forced into action to innovate once, but since then they’ve respected the urgency and continuity of innovation almost as the word of law. Open innovation has become the party line at LEGO. The Future Lab is now focused on even more forward-looking initiatives, tasked with inventing new, technologically enhanced “play experiences” around the world.50 They’ve made inroads into China, partnering with the Tencent Internet company, creating opportunities to experiment with digital technologies and a growing consumer base. They’re still producing and selling their iconic blocks, but they’re also trying out mobile apps and playing with the integration of physical toys and the digital world. Sounds pretty Fourth Industrial Revolution, no?
Summary: Innovation Waits for No One
If innovation is not top of mind, then you’re going to be left behind. Today’s unicorns can easily become tomorrow’s Blockbusters, but such a fate only awaits those companies that refuse to remain relevant. As markets continue to change even more rapidly through new technological and scientific advancements, the global social, economic, and business environment will quickly evolve as well. New demands require new responses, and challenges unique to the Fourth Industrial Revolution will surely be solved through continuous change, paving the way for the fifth revolution, sixth revolution, and so on. At the end of the day, one of the only things in this world that is permanent is change—the other is innovation.
It’s no secret that companies die, nor is it a secret as to why. As in the past, future progress can only be enabled through innovation, and businesses must take this sentiment to heart or face the consequences. It doesn’t matter what the excuse is for inaction; failure to act for any reason will produce the same negative results time and time again. That’s why a sense of urgency and duty must be instilled throughout your organization—from employee to middle manager to the CEO and the board. Still, truly embracing change and innovation may be difficult, especially if innovation has never truly been prioritized or has fallen by the wayside. Since that’s the case, there must be a leader in place to develop and drive strategies—the topic of Chapter 2.
Principle
The only thing that is constant is change. Innovation is urgent, time sensitive, and always present.
Action
Pay attention to current social, economic, and technological transformations that may be affecting your organization and understand their implications.
Communicate the urgency of innovation to meet the challenges of change throughout the organization.
Obstacle
A rapidly changing world means we must get educated and get out of our comfort zone, but many of us remain resistant to change, even when it’s staring us right in the face, and do everything to maintain the status quo.
Outcome
Leaders and employees are attentive to social, technological, and business changes and are willing to embrace them.
Notes
1 1 Scott D. Anthony, S. Patrick Viguerie, Evan I. Schwartz, and John Van Landeghem, “2018 Corporate Longevity Forecast: Creative Destruction Is Accelerating,” Innosight Executive Briefing, February 2018, https://www.innosight.com/wp-content/uploads/2017/11/Innosight-Corporate-Longevity-2018.pdf.
2 2 CB Insights, “$1B+ Market Map: The World’s 326 Unicorn Companies in One Infographic,” CB Insights Research Briefs, March, 14, 2019, https://www.cbinsights.com/research/unicorn-startup-market-map/.
3 3 Ibid.
4 4 Punit Renjen, “The Fourth Industrial Revolution Will Change the World—but Only 14% of Execs Are Ready for It,” World Economic Forum, January 12, 2018, https://www.weforum.org/agenda/2018/01/87-of-ceos-say-the-fourth-industrial-revolution-will-improve-equality-but-are-they-ready-for-it/.
5 5 Marketdata LLC, “The U.S. Weight Loss & Diet Control Market,” Research and Markets, February 2019, https://www.researchandmarkets.com/research/qm2gts/the_72_billion?w=4.
6 6 Abigail Hess, “The 10 Most Educated Countries in the World,” CNBC.com, February 7, 2018, https://www.cnbc.com/2018/02/07/the-10-most-educated-countries-in-the-world.html.
7 7 Felix Gussone, MD, “America’s Obesity Epidemic Reaches Record High, New Report Says,” NBCNews.com, October 13, 2017, https://www.nbcnews.com/health/health-news/america-s-obesity-epidemic-reaches-record-high-new-report-says-n810231.
8 8 Ibid.
9 9 Jon Porter, “The Last Blockbuster in America Is Now the Last in the World,” The Verge, May 7, 2019, https://www.theverge.com/2019/3/7/18254381/last-blockbuster-usa-world-australia-closing.
10 10 Rick Munarriz, “Blockbuster CEO Has Answers,” Motley Fool, December 10, 2008, https://www.fool.com/investing/general/2008/12/10/blockbuster-ceo-has-answers.aspx.
11 11 Jon Brodkin, “Myspace Apparently Lost 12 Years’ Worth of Music, and Almost No One Noticed,” ArtsTechnica.com, March 18, 2019, https://arstechnica.com/information-technology/2019/03/myspace-apparently-lost-12-years-worth-of-music-and-almost-no-one-noticed/.
12 12 Pamela N. Danziger, “Retail Downsizing Will Accelerate, With UBS Predicting 75,000 Stores Will Be Forced to Close By 2026,” Forbes, April 10, 2019, https://www.forbes.com/sites/pamdanziger/2019/04/10/retail-downsizing-will-accelerate-as-75000-stores-will-be-forced-to-close-by-2026/#16dc390d339e.
13 13 PBS, “The Devil’s Music: 1920s Jazz,” PBS.org, Culture Shock: The TV Series & Beyond, 2000, https://www.pbs.org/wgbh/cultureshock/beyond/jazz.html.
14 14