Pivot: How Top Entrepreneurs Adapt and Change Course to Find Ultimate Success

Chapter 2

Innovation is Bringing Discipline to Chaos

Plant = Discovery; Pivot = Incubation; Propel = Acceleration

Two very well known companies had very different outcomes—Kodak and IBM.

Kodak invented the digital camera yet struggled to commercialize it due to the dominance of its film business and the power of its distribution channels. Clearly, digital photography displaced the film business, which had been a very profitable one for many years. In the end, Kodak is selling off its intellectual property and is bankrupt.

In contrast, IBM asked why it was missing emerging business opportunities in 1999 and set a direction to fix it. It has moved into whole new platforms of growth in blade computing, bioinformatics, cloud-based services, and cyber security, among others. It even sold off its personal computer business since it was not a part of its vision of the future or its strategic intent. IBM is a success story recognized by Fortune magazine, Forbes, and others for its growth, profitability, and contributions to innovation.

Companies that pursue and correctly execute upon more game-changing strategies have consistently outperformed competitors focused on sustaining existing business areas. This is due to their ability to reshape markets and industries. Kodak came up with the invention but could not commercialize it. IBM came up with many inventions and did successfully commercialize them. There are very few companies that have been able to sustain this type of growth and renewal ...