the cost of not innovating

The Cost of NOT InnovatingPart 1 -

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The Cost of NOT Innovating

Facilitated by Daniel Feiman, MBA, CMC®




What is the Cost of Not Innovating? Unnovation

Unnovation is the refusal to identify, create, embrace, explore, develop or adopt new ideas, opportunities, products, processes or ways of doing business that results in the unnecessary and un-timely end to a

business because it is eventually overtaken by market-savvy competitors.




Who failed to innovate?• Yell was disrupted by Google;

• Borders by Amazon;

• Blockbuster Video by Netflix

• And…




Note




• Fifty years ago, “milking the cash cow” could go on for many decades. Today, globalization and the shift in power in the marketplace from buyer to seller is dramatically shortening the life expectancy of firms that are merely milking their cash cows. 50 years ago, the life expectancy of a firm in the Fortune 500 was approximately 75 years. In today’s world it’s less than 15 years and declining even further.




Fortune 500 Firms in 1955 vs. 2011; 87% Are Gone

What do the companies in these three groups have in common?

Group A. American Motors, Studebaker, Detroit Steel, Maytag and National Sugar Refining.

Group B. Boeing, Campbell Soup, Deere, IBM and Whirlpool.

Group C. Cisco, eBay, McDonald's, Microsoft and Yahoo.




Comparing the Fortune 500 companies in 1955 and 2011, there are only 67 companies that appear in both lists. In other words, only 13.4% of the Fortune 500 companies in 1955 were still on the list 56 years later in 2011, and almost 87% of the companies have either gone bankrupt, merged, gone private, or still exist but have fallen from the top Fortune 500 companies (ranked by gross revenue).




Which means…?



Pre-active vs. proactive vs. reactiveSwim Sink




They saw it…




If you are not moving ahead…you are falling behind!




Contacting us:Daniel Feiman, MBA, CMC®,

Managing DirectorBuild It Backwards(TM)

Transforming organizations by Turning Roadblocks into Roadmaps(SM)

Office: 310.540.6717 Cell: 818.522.2892Consulting & Training in:

Strategy* Finance * [email protected]

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the cost of not innovating

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