We often use Netflix as a great example of a company that was founded because they challenged an industry business model. They re-invented how we “rent” movies. No sooner than they did, they had to re-invent again as on-demand streaming became more widely available and accepted. They entered an extremely fast moving industry, and now play a significant role in leading the charge to innovate, even ahead of the curve.
Their pronouncement to investors this week is a great example of the audacious commitment to innovating not only their own business model, but the business model of the entertainment industry. Netflix gets it. Given the pace of change everywhere, any organization that sits on a business model too long will become obsolete.
Unfortunately, most companies, even those that began because they took a risk and innovated a business or industry model don’t understand this truth. A balanced innovation strategy that includes Incremental, Adjacent, Adaptive and Transformative innovation is, in almost every industry, a necessity for growth and often even for survival.
Check out this article about Netflix’s announcement. We hope it inspires you to think big about innovation in your industry and your organization.
The Garage Group brings entrepreneurial approaches to insights and ideas.
Photo licensed under Creative Commons 2.0 via Flickr user: clasesdeperiodismo
