Innovation is often seen that initially when the startups begin with a team of about 1-5 people it is good at being agile. It forms the DNA of the company and it is like innovate it or die. But in the later stage when there are around 100 people the startup starts to lose its agility. An innovative idea will be an add-on value to the consumer. This value-add on aspect of its innovation is what makes it different from the other companies. Many companies introduced innovation that just not changed the way we think. Instead, it made companies that solved the problems better than the existing ones.
Stumbling The Product Pivot
The startups start at the initial stage with a small team of 1-3 members. Hence, they build new and innovative products. They attract users. They get funding and at last, they start growing. It may grow at times, but there are also chances that things do not fall in their place.
Some Reasons Why The Startups Struggle With Innovation
The startup ecosystem has made progress over a period of time and is successful to go through the first stage of new ventures. This is possible only with the help of lean startups, agile development, and design thinking. To make your startup successful you need to hire a small team. Stay close to your consumers, launch your product, get feedback regarding the same and test it until it is right. A product pivot should also follow the same process as the startup went through. Know the startup struggles.
At the later stage, the startups become more confident. When they get positive feedback they may start to think that they can get through this in the first attempt.
It is seen that the executive team feels more pressure as they find it difficult to keep pace with the 100% growth of revenue. And due to this, they need that hail mary so that they can get back on their track.
The investors who have invested in the startups pressurize the company to keep pace with the expectation of the revenue growth.
How Should The Startups Run The Process Of Innovation?
You need to first make the R and D: The R and D needs to be set up in an agile environment. It should find products that are fit for the market. Just as it was when it was started with just 5 members. R and D mainly focus on new products. This new product team should also have its small group consisting of 1 salesperson, 1 marketer and 1 customer person. This team should be sitting and cooperating every minute of the day.
These go-to-market resources need to be made to fund the pivot and to reduce the cash drain that the company goes through. Keep 90% of your go-to-market team for the legacy product. And this team should consist 10% of the R and D team. This will support the old product, working with customer support so that the customers are happy.