Innovation Is Not Safe: The Risk and Reward of Shaking Industries

Innovation is a buzzword often thrown around in corporate settings. Yet, many projects labeled as "innovative" are, at their core, merely efforts to improve existing products or processes. While improvement is valuable, it is far from what true innovation entails. Improvement is about optimization; innovation is about reinvention. True innovation is disruptive, risky, and transformative - it requires viewing a problem from a completely different angle.

Improvement vs. Innovation: A World Apart

Improving a product or process means making it better, faster, or more efficient, but within the same framework. It's evolutionary, not revolutionary. True innovation, on the other hand, redefines the framework entirely. It doesn't just tweak the system; it rewrites the rules.

Take Google as an example. For years, Google has been refining its search engine - optimizing algorithms, improving relevancy, and enhancing monetization through ads. These are incremental improvements. Enter ChatGPT. Instead of organizing information for better search results, ChatGPT offered a radically different approach: providing conversational, AI-driven answers to user questions. This wasn’t a refinement of Google’s vision, it was a challenge to it.

Google's long-held vision of “organizing the world’s information” now seems insufficient. ChatGPT shifted the focus from organizing data to solving the end-user’s knowledge problem directly. The contrast reveals an uncomfortable truth: innovation often requires abandoning the comfortable mechanics of the past and addressing the deeper, real-world needs of users.

The Risk Factor in Innovation

Why don’t companies innovate more? Because true innovation is inherently risky. Unlike improvement, which relies on data and predictable outcomes, innovation is often guided by intuition and bold thinking. It means venturing into uncharted territory with no guarantee of success.

Consider the leap that ChatGPT represents. OpenAI bet on large language models as a way to fundamentally change how people interact with knowledge. There was no proven market or extensive data to support this leap. It was a high-risk, high-reward move that could have failed spectacularly, but instead, it reshaped the entire landscape of AI and search.

This is why innovation feels unsafe. It challenges existing norms, takes big risks, and frequently faces skepticism because it disrupts what is already working.

Lessons for Managers: How to Foster Real Innovation

If you’re a manager or decision-maker, how do you ensure that your organization is truly innovating rather than just improving? Here are a few key suggestions:

1. Redefine the Problem Start by questioning the assumptions around your current products and processes. Are you solving a technical or operational issue, or are you addressing the fundamental problem your users face? Real innovation requires digging deeper into the value chain to address the end-user's ultimate needs, not just the mechanics of delivery.
2. Embrace Risk - but Start Small Innovation involves risk, but it doesn’t have to be reckless. Start small with pilot projects or prototypes. This way, the pain of failure is tolerable, and you can pivot without major losses. Calculated risks allow you to experiment and iterate while maintaining momentum.
3. Pair Vision with Execution Innovation doesn’t stand alone. It needs robust technology, a clear strategy for execution, and the right timing. An idea, no matter how transformative, will fail without these supporting pillars.
4. Patience Is Key Disruption doesn’t happen overnight. Even groundbreaking innovations require time to mature and gain traction. Be prepared for setbacks and a longer horizon before results materialize.
5. Assess the Vision Look at the big picture. Does your company’s vision address the real problem users face? If not, it’s time to rethink your approach. Vision isn’t just about where you want to go—it’s about ensuring you’re solving the right problem in the first place.

Final Thoughts

Innovation is not safe, nor is it easy. It demands a shift in thinking, an appetite for risk, and a willingness to challenge the status quo. However, when done right, it has the power to redefine industries, transform lives, and create enduring value.

True innovation requires companies to do things differently, not just incrementally better. It’s about stepping into the unknown, armed with insight, intuition, and the courage to fail, adapt, and try again. After all, the most groundbreaking ideas often start as leaps of faith.