The Challenge We Solve
The following facts define the key challenge that EVERY firm must solve for its mere survival (not to mention prosperity)
- The academic research (based on math models) states that an entity MUST grow; the opposite “…makes the firm’s prospects highly unattractive in finite time and bankruptcy practically certain in the long run.” (Gordon and Rosenthal, CJOE, 2003)
- Innovation is commonly recognized as the growth engine. 93 percent of surveyed executives (a study by Accenture, May, 2013) indicate that their companies’ long-term success is dependent on innovation.
- However, innovation is very risky. According to Frost & Sullivan (2008), the probability of an innovation to create growth is under 1 percent!
- With this probability of succeeding, failure is prevalent, and only 18 percent of surveyed executives (the Accenture‘s study) are happy with innovation efforts results while research by INSEAD found that “…permanently excellent companies and industries do not exist.” In other words, the probability of sustaining growth over the long run is equal to zero.
In light of these facts, to have even a chance of sustaining market success, companies MUST reverse the odds of producing innovations that result in growth, as no entity can continually beat the power of probability, and the failure is just a matter of time. Learn about the methodology Design for Advantage™, which provides a solution to this challenge.