To innovate or not to innovate?
This need to evolve isn’t just about survival; it's about embracing change and seizing new opportunities to move up the ladder to avoid stagnation.
Remember Quibi? Launched with much fanfare in 2020, Quibi was a short-form streaming service that aimed to revolutionise how we consume media. Despite a star-studded launch and millions in funding, it shut down within six months. The problem? Quibi underestimated the competition from platforms like TikTok and YouTube, which already had a stronghold on short-form content. They failed to understand their audience and the market trend towards user-generated content, leading to their quick demise.
Why are we talking about Quibi and its unfortunate fate? Because today, we're going to answer that infamous Shakespearean question, “To be or not to be, that is the question.” in the context of business survival.
In a world where markets evolve at lightning speed, the need to adapt isn't just a strategy—it's a necessity. Companies must constantly innovate, pivot, and sometimes even shut down parts of their business to stay relevant and thrive. This need to evolve isn’t just about survival; it's about embracing change and seizing new opportunities to move up the ladder to avoid stagnation and eventually becoming vestigial.
Learning from the Past
All of us know what happened to Blockbuster because it failed to pivot itself into the next Netflix, but we also know what happened with Theranos and promises to innovate they couldn’t keep up with. What can we ideally learn from our predecessors? How do we, as entrepreneurs, make sure we innovate as per the market but not simply because we failed to execute?
Slack started as an internal tool for a gaming company but pivoted to become a powerful communication tool for businesses. They didn't just innovate; they listened to their users and continuously improved their product based on feedback. This focus on execution and aligning innovation with user needs turned Slack into a SaaS giant.
Finding the Balance
So, how do we find the balance? How do we, as startups, not succumb to fads but also rise above cyclical tides?
Stay Ahead of Trends
Look at Zoom. Before 2020, they were just another video conferencing tool. When the pandemic hit, they quickly scaled up, adding features to support the sudden surge in remote work and online education. They focused on user experience, security, and integration with other tools, which helped them dominate the market. So, staying ahead of trends and understanding your customers is crucial. Use data to drive your innovation strategy. This doesn’t mean just following trends blindly but identifying which ones align with your vision and capabilities.
Incremental Innovation
Not all innovation has to be groundbreaking. Small, continuous improvements can significantly impact customer satisfaction and operational efficiency. For instance, Canva started as a simple graphic design tool. Over time, they've continuously added features based on user feedback, making design accessible to everyone, not just professionals.
Execution is Key
Innovate within your means. It’s better to deliver a functional, reliable product than promise something you can’t achieve. Take Peloton, for example. They didn’t just launch high-quality exercise equipment but created an engaging, community-driven experience with live and on-demand classes. They executed their vision brilliantly, leading to a loyal customer base.
Adaptability
Be willing to pivot. Many successful startups today didn’t start with their current business model. Instagram, for instance, began as a location-based check-in app before pivoting to photo-sharing, which ultimately led to its success. Adapting to market feedback and being flexible in your approach can open new avenues for growth.
User-Centric Approach
Always keep the user at the centre of your innovation. Products and services that solve real problems and enhance user experience will always find a market. Look at how Clubhouse tapped into new user behaviours with audio interaction, creating an exclusive, invite-only experience that generated massive buzz and a sense of community.
Innovation should not be a checkbox on your to-do list but a strategic approach that aligns with market needs and your business capabilities. Learn from the past, stay informed about current trends, and, most importantly, listen to your customers. By balancing innovation with execution, you can ensure that your business not only survives but thrives in the ever-evolving market landscape.
Until next time, keep growing!
