From Terry Howerton – Innovation is the beating pulse that propels new gadgets, new solutions and new ways of thinking. But it is often easy for companies to get too comfortable and forgo the risks that are necessary for innovation to occur. As companies grow, they usually weaken their ability to come up with fresh ideas. Until they are shaken by a new disruptive technology developed by nimbler new entrants.
Greater collaboration between established companies and entrepreneurs is the path to continuous innovation. In today’s marketplace, new products are released at a fast pace and new versions of existing products appear just a few short months after the previous model. To be on top of the game, companies need to turn innovation into a habit. And collaboration is the right way to go. When companies and entrepreneurs come together in a collaborative environment conducive to intense throw-out-the-old-model thinking, mutual benefits emerge from unlocking new opportunities and increasing economic value. This is the kind of meaningful collaboration that happens each day at TechNexus between entrepreneurs and bigger companies; some of that is deliberate and organized, and some is by happenstance.
Mature firms can take advantage of entrepreneurs’ energy, creativity and high-risk tolerance to spearhead new ideas and develop innovative solutions to old and new market problems. Through collaboration, established companies can also minimize the risks of venturing into new markets while maximizing return on investment. Entrepreneurs are extremely motivated and thrive in tough times, making them ideal partners when no one has been there yet and you don’t know if it is going to work or not. By working together, companies and entrepreneurs can create a much larger and more valuable market than they ever could by working individually.
Collaboration can also give companies a head start over competitors. Entrepreneurs usually make an impact growing an otherwise slow-growing or declining market, or developing an entirely new niche market. Over time, disruptive innovations can challenge industry leaders. By collaborating, mature firms can make strategic bets, and gain access to products or services that may be an essential asset in fast-paced dynamic industries.
In the era of innovation, the underlying capability is collaboration. And both companies and entrepreneurs can reap huge mutual benefits by participating in a vibrant ecosystem where likeminded people come together to pursue joint strategies of continuous innovation.
