We hear a lot about innovation today, but why is it so essential to sustainable business success?
Innovation is the oxygen of business. Fail to invest in innovation and eventually you will suffocate and be crowded out by a competitor or by an entrepreneur who identifies how to deliver a solution that creates more value than yours (and those of your competitors). Focus too much attention on efficiency at the expense of innovation and eventually you’ll end up getting really good at making stuff people no longer want.
To continuously innovate, companies must learn to manage a few key tensions that exist in every organization.