| | APRIL 201919CIOReviewSKIP INNOVATION NOW, DIE SLOWLY LATERBy Robert Neivert, Venture Partner, 500 StartupsAs the pace of innovation increases, companies using a status quo strategy are actually falling behind. (Just ask the taxi industry how much Uber and Lyft have hurt their bottom line). Innovation companies are crushing their "old school" competitors with higher margins and more profitability, creating the bonus advantage of leverage to recruit better people. So how does a successful, larger company find that radical new idea to compete with their more nimble start-up competitors? The following are some tips I can offer you after many years--and hundreds of investments--answering this question. First, it is important to understand that large companies have an intrinsic barrier to innovation. The very skills, procedures, and hiring practices that help companies succeed and grow are the same skills that prevent innovation. Large companies want predictable, consistent revenue growth. But innovation is not predictable, it is not consistent, and it often demands the death of precious projects making money. While it may seem like professional suicide to pursue an innovative (read: risky) project that threatens key profit centers of your company, if you want to compete, that is exactly what you do.CXINSIGHTS
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