EIR pill for 800-pounds gorilla

FT Weekend published a thought-provoking article by Tim Harford that explains why corporations fail to innovate.

Harford gives an example of Xerox Parc who invented, back in the 70s, the world’s first personal computer, with a mouse and rich GUI. That computer inspired Bill Gates and Steve Jobs. Xerox still makes photocopiers…

“Organisations from newspapers to oil majors to computing giants have persistently struggled to embrace new technological opportunities, or recognise new technological threats, even when the threats are mortal or the opportunities are golden. Why do some ideas slip out of the grasp of incumbents, then thrive in the hands of upstarts?”

The answer is surprisingly simple.

“There is an obvious explanation for all of these failures and missed opportunities: people are idiots.” Ouch. 

The cause of the problem is simple too: people don't get fired by corporations for not introducing changes. Change/innovation = risk. People do get fired - rightly or wrongly - for taking risks.

Solution? Simples! 

EIR – Entrepreneur in Residence. Such a person could play many roles: a bridge between the corporate and startup worlds; a rainmaker who would source good partnerships (in either direction); a sounding board; an advisor to CEO. With the right attitude on both sides, EIR can produce amazing results.