Intel Disrupted: Why large companies find it difficult to innovate, and what they can do about it
Steve Blank

The innovation currently comes from startups, but out-innovating startups might not be easy or even possible for large established enterprises. If you add in the risk associated with the required investment it might not be a good proposition at all if it would just diminish your margins and you’re unlikely to succeed.

It could very well be a winning strategy to keep innovation low in large established enterprises with high margins and use those profits to acquire established startups at the right time before they take off, thereby paying a higher price, but also significantly reducing risk and uncertainty.

I think the selection of the right startup and the timing, and therefore the cost/risk tradeoff, will be the challenge, and it will be interesting to see whether leadership teams with mainly financial, supply chain or production backgrounds can pull that off.

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