The survival rate of firms
The average length of stay in years of companies in S&P500 (rolling 7 years, forecast 2018-2030).

Did you know that the survival rate of firms is falling sharply?

On the one hand, this is due to specific and often disruptive technologies that are not adopted by incumbents, and on the other hand, statistics also show that the number of start-ups in these areas is on the rise.

“Disruption” usually comes from small and agile companies, which are much faster in decision-making. Likewise, the «disruptive technologies» seem to be inferior at the outset when compared with established core business metrics.

The survival rate of firms can only recover if systematic innovation is applied to track metrics and to balance the innovation project portfolio in an agile way.

 

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