Immersive Technologies to Accelerate Innovation

1Innovation Management: Issues and Key Points for a Vital and Strategic Process

Systematic innovation requires a willingness to see change as an opportunity. PETER DRUCKER

1.1. A question of survival

Every year since 1955, Fortune magazine has published a ranking of the 500 highest-grossing U.S. companies. In 2014, the American Enterprise Institute revealed that 88% of the companies initially included in this ranking were no longer in existence. Some had gone bankrupt, others were bought out, even though most of them had been flagships of American industry. As Joseph Schumpeter said, most companies die “of old age” when they are no longer able to innovate. Lack of innovation naturally leads established companies to disappear. These disappearances are accelerated by the arrival of new companies which, on the contrary, are born and develop in their wake. Innovation is therefore a question of survival, or at least of maintaining a dominant position.

1.1.1. The example of Blockbuster Video

Blockbuster Video is a famous example of a company that died of old age due to lack of innovation. Founded in 1985 in Dallas, the company operated a chain of VHS movie rental stores. It adapted to the evolution of video media, moving from VHS to DVD and video games. In 2000, Blockbuster had an option to buy the young California company Netflix for $50 million. Blockbuster’s executive at the time refused the deal because Netflix was losing money. In 2014, Blockbuster Video went bankrupt while ...