David Vs. Goliath

It is a well known fact now: Smaller, more nimble companies are changing the face of Innovation and giving larger incumbent companies' nightmares. These small maverick companies' are always out to produce that industry changing product or service that would make larger companies' obsolete. There are three strategies that smaller midsize companies' use, from which larger companies' can learn:

1) The practice of constant experimentation is as fundamental to research as it is to innovation. When a company is small, it benefits from a quick cycle of experimentation and learning. For big companies', the budgets, culture, and shareholders all stand in the way of following this pattern. Small and smart companies understand the value of trial and error. Large companies fear failure and panic if they don't see results at the end of an experiment. Large companies' must demand small, controlled launches that allow your teams to learn, build courage, and taste success.

2) Mature industries are characterized by inertia, habit, tradition, complacency, and "expertise," people who know the best way something should be done (i.e. it's the way they have always done it.) This produces amazing opportunities for upstart companies to beat established companies with their innovation. The solution is to slash bureaucracy, fire the people who are hindering progress, and beef up innovation efforts. The less obvious solution would be to create a new company, thinking like an entrepreneur.

3) C level support is extremely vital for innovation activities. Unlike giant companies, midsize and small companies benefit from the involvement of the CEO. When the CEO sponsors an idea, one can bet it is approved in record time.Most large company CEOs talk about innovation but are not really involved in day to day activities. However, the CEO has to be involved. Without this support, the odds of nothing happening increase dramatically.