Steve Blank’s blog has a great article that really summarizes the situation where many companies are now struggling, and how they should organize themselves around continuous innovation.
Companies will need to have an organization that can do two things at the same time: executing and improving existing models and inventing business models that are totally new and disrupt the market. But the existing structures in most of the organizations are not flexible enough to do both of these parallel.
Based on what I have seen, it also often demands two different kind of development cultures that are quite opposite. When well established organizations develop existing services they typically use approach where which aims to analyze everything first to avoid making mistakes. You can see this in any organization when you take a look what all those specialists, managers and lawyers are doing there. On the other hand, with new services and business models there is a call for startup-like development path where experimentation leads to mistakes and failures that actually help to find the right direction. And there isn’t much time or need for advance analysis.
It’s a big question if corporations (and public organizations) can actually create development environment where these two cultures can coexist.
Read Steve Blank’s article: The Future of Corporate Innovation and Entrepreneurship