The corporate survival challenge
We are now in a transition to a post-industrial economy. Corporates face massive industry disruption from a combination of exponential technologies. To deliver shareholder value, they must increasingly emphasize rapid renewal. This is proving difficult.
Startups are exploiting disruption opportunities much faster than corporates, which are hampered by a lack of awareness, cultural impediments and organizational structures focused more on efficiency than innovation.Most corporate innovation efforts are cautious, slow and incremental.
Corporates also have difficulty attracting and retaining innovation talent.Young innovators are not eager to go work for big, conservative organizations. They seek self-actualization, empowerment and a sense of having an impact of the world.
Corporates risk decreasing relevance not only to customers and talent, but also to investors. General Electric, a corporate known for decades of operational excellence, was recently removed from the DJIA index after 133 years. Corporate lifespans are dropping.