Article for The Economist Insights
Businesses have always come and gone, but these days it seems that companies can fall from market dominance to bankruptcy in the blink of an eye. Kodak, Blockbuster and HMV are just a few recent victims of the rapid market disruption that defines the current era.
Where did these once iconic companies go wrong? To my mind, they forgot to keep challenging their assumptions about what business they were actually in.
Businesses have two options when they plan for the road ahead: they can put all their eggs into one basket, and risk losing everything if that basket has a hole in the bottom, or they can make a number of small bets, accepting that some will fail while others succeed.
Taking the latter approach, and making many small bets on innovation, transforms the boardroom into a roulette…
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