INNOVATION STAGNATION 

When the Black Death struck Europe in 1348, it’s estimated to have killed up to 60% of the continent’s population. But in its wake innovation and scientific progress, which had been suppressed for decades, began to flourish. The disruption of existing social, economic, political, and religious traditions led to the collapse of rigid hierarchical structures and helped clear the way for the development of modern science.

Knowledge suppressed

At the time of this deadly plague, as Steven Weinberg writes in, To Explain the World, the traditions not only of Christianity but also Islam, Buddhism, Confucianism and other religions held that ‘we already know everything we need to know’. This was an attitude incompatible with the fundamental premise of modern science, which is that, ‘we do not know everything and should strive to acquire new knowledge’. He highlights two reasons why Christianity, in particular, clashed with science:

1. ‘Pagan’ science was considered a distraction from the spiritual matters that Christians should properly be focussing on.
2. Mathematics and science were felt to be unworthy competition for the career opportunities offered to the young by the Church.

It’s not my intention here to provide a history lesson, or to suggest that religion is the enemy of innovation. Rather, it’s to highlight that what often hinders change is this: the thought that any idea which doesn’t conform to established structures should be resisted. And to point out that when disaster strikes, it often clears the way for innovation.

Business barriers

So, taking Weinberg’s observations about Christianity and translating them to the business world, we could suggest that:

1. Innovation distracts employees from a company’s existing business.
2. Existing business offers better career opportunities than innovation or new ventures.
3. Changing a successful business model is a bad idea.
4. Even suggesting changes to a successful business model is taboo.

Or to put it another way: success has become, over time, as rigid and unquestionable as a strongly held religious belief. It cannot be doubted. Does any of this sound familiar?

The illusion of perpetual growth

Perhaps your company is thriving. Further, if you continue to nurture and grow the existing business, it may well continue to succeed – without problems. But probably only in the short or medium term. Because no business can continue to grow forever without change. Progress and change are inevitable. The world does not stand still, however much we might want it to. 

Yet despite this, many companies stay trapped in the illusion that their existing business will continue to expand indefinitely. And such a belief makes the preservation of established structures and practices their highest priority. Such companies resist change, which only makes it harder to adapt and survive when the world – and what consumers want – takes a new direction. Three examples illustrate this all too well.

Kodak led the market in photographic film throughout the 20th century. It even developed the first digital camera, but sidelined it for fear it would harm film sales. It filed for bankruptcy in 2012. Blockbuster had over 9,000 video outlets at its height, yet when it failed to adapt to streaming-on-demand, customers vanished. As they did for Blackberry, which in the early years of this century had over 80,000,000 users. It ignored touch-screen technology and saw its share of the mobile phone market shrink to less than 1%.

So what should businesses do?

Embrace change

Innovation that creates new opportunities can take several forms. It might involve products or services that extend existing business, leveraging current strengths and assets to generate new growth. Or it might call for a company to take a risk with entirely unrelated fields that promise future growth.

Whatever form it takes, the key to innovation is the fostering of a corporate culture that actively seeks new knowledge and business models, even when the existing business is performing well. It’s fine to be happy with success, but a successful company also needs to be looking – continually – for potential new growth areas. And then entering them when the right opportunity arises.

The company that prioritizes the exploration of fields unrelated to its current business – but with the potential for future growth – will go a long way to addressing the issues highlighted by Steven Weinberg.