I read this article following a link from Blognation: The Equity Kicker » Blog Archive » It is tough for big companies to innovate.
The article asserts that it is more difficult for big companies to innovate because, as they grow, they get further and further away from their customers. Smaller companies, because their business is always on the line, understand their customers better, and work hard to engineer and deliver products or services that precisely meet customer needs. The example that they give is in a business like online auctions, customers should be brought into the innovation process, so that executives can see customer frustrations and opportunities for new service offerings. Although Ebay is a pioneer in building communities, they may not use these communities creatively enough in building new products.
What do you think?
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