Business commentators often highlight the case of companies failing to adapt to newer technologies to give them an edge. On closer scrutiny though, it emerges that business innovations are often unable to come to the surface due to a certain key stakeholder- investors. Many of them are so attuned to a certain technology, that they go out of their way against introduction of a new one. Investors also want near-term gain, which is what prevents them in spending on something that may have ripple effects later on, but not much immediate value. Investors though are more lenient in cases with startups, as there the valuation is more to do with future potential rather than current profits. Innovating in the face of conservative investors is a challenge, but digital leaders of tomorrow need to take up such risks. Thus, carefully calibrated communication with investors is a must, especially for older, more established firms where the valuation is present profit based.

Source:https://hbr.org/2018/08/when-companies-want-to-innovate-but-investors-wont-let-them?utm_medium=email&utm_source=newsletter_daily&utm_campaign=dailyalert_activesubs&utm_content=signinnudge&referral=00563&deliveryName=DM12562

Uploaded Date:27 August 2018