Why Playing It Safe Could Sink Your Business: Innovate To Survive

Playing It Safe Won’t Keep You in the Game

When stability and predictable revenue define success, organizations can become blind to the bigger picture. But relying on what’s always worked is just another way to get left in the dust. Here, we’ll dive into why it’s not enough to play it safe, how business as usual (BAU) strategies can become death traps, and why leaders need to embrace innovation, either by doing it themselves or by betting on those who do.

Status Quo Success Stories (For Now): Can Playing It Safe Really Work?

When companies achieve stable profits without rocking the boat, the BAU model seems like a no-brainer. Boeing, IBM, and Blockbuster all epitomized this mindset to varying degrees, banking on their entrenched positions rather than new ideas. But let’s get real: BAU might look good on the quarterly report, but complacency eventually brings collapse.

With tech evolving so fast and AI making earth-shattering leaps forward on what seems like a weekly basis,  barriers to entry across nearly every industry have dropped sharply, making it easier than ever for new players to challenge legacy businesses. Biotech, space exploration, software, publishing—none are immune to agile, innovative competitors with big dreams and little patience for established norms. The influx of accessible technologies, venture capital, and cloud-based infrastructures has democratised entrepreneurship, paving the way for creative thinkers and proactive solopreneurs to enter fields once dominated by heavyweights. For instance, space travel, once the exclusive realm of government and legacy corporations like Boeing, now sees private ventures like SpaceX and Blue Origin pioneering affordable, reusable rocket technology, leaving companies that rely on outdated models scrambling to keep up​.

We’ve seen it across other industries, too. In hospitality, Hilton didn’t initially perceive Airbnb as a legitimate threat, only to watch it redefine short-term rentals and grow into a $100 billion company without a single property on its balance sheet. AltaVista, a giant in the early search engine market, infamously dismissed an offer to acquire Google for $1 million. Adobe, once unchallenged in graphic design software with a pricing model that intimidated casual users, met its match in Canva—a platform that democratised creativity and offered a design platform to the masses at a much lower price point. These cases highlight an undeniable reality: no industry is impenetrable, and if your organization isn’t pushing forward, others are eagerly waiting to step into your place and take the reins.

• Boeing once led the aerospace market, but reliance on outdated strategies and cost-cutting over innovation brought the company to the brink. The 737 Max disaster—two fatal crashes due to quality control issues—led to a $20 billion loss and countless lawsuits​. Furthermore the Starliner, Boeing’s delayed spacecraft, has racked up over $1.6 billion in additional costs due to persistent quality failures​ – oh, and the 100 year old firm stranded a couple of astronauts in space… luckily new kids on the space travel block, SpaceX, were around to pick up the slightly miffed astronauts.

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• IBM’s mainframe business is another example. Once upon a time International Business Machines owned the market, but they never imagined personal computing would ever catch on. That was their first mistake (although that oversight added plenty of zeros to a young Bill Gates’ net worth). Complacency, a lack of innovation and stiff competition have left the company trailing in cloud computing, where competitors like Amazon and Microsoft control 32% of the market, compared to IBM’s meagre 4%​.

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• The classic tale of Blockbuster shows how quickly playing it safe turns risky. Startup-hero and Netflix Co-founder, Reed Hastings offered to sell his burgeoning video business to Blockbuster for a cool $50 million, but Blockbuster’s CEO laughed it off, secure in their market position. Today, Netflix is worth over $322 billion, while Blockbuster is now synonymous with failure​.

So why stick with BAU? High barriers to entry and stable customer bases make it easy for companies to coast along… until someone more innovative upends the whole industry. Playing it safe only seems safe—right up until it isn’t.

Why Most Organizations Find Innovation So Hard

Innovation sounds sexy but feels risky. It’s easy to stick to familiar paths and avoid the headaches that come with changing gears. It doesn’t just require creative thinking—it demands a company-wide commitment to managed risk-taking and long-term investment. Yet many organizations, especially large, well-established ones, struggle to make this cultural shift. Studies indicate that established companies are often trapped by their own success, prioritizing efficiency over experimentation. Harvard Business Review highlights that over 63% of employees in large organizations feel that their company’s culture discourages innovation. The focus on predictable outcomes, driven by rigid structures and risk-averse policies, can stifle creativity. When failure is penalized, rather than seen as a learning experience, employees avoid taking the very risks that could lead to breakthroughs​ and drive the business forward..

Another challenge lies in the deeply ingrained reliance on short-term results, particularly among publicly traded companies. Shareholders and investors often place significant pressure on organizations to meet quarterly expectations, leading to a constant drive for quick wins over sustained innovation efforts. According to McKinsey, 87% of executives report feeling pressured to deliver strong quarterly earnings, even if it means sacrificing long-term initiatives. This dynamic restricts companies from investing heavily in innovation, which typically requires a longer timeframe to pay off. The result is a cycle where quick, incremental improvements are prioritized over potentially transformative projects that don’t immediately impact the bottom line​.

Moreover, the talent gap in specialized fields is a growing concern, particularly in high-tech sectors like AI, biotech, and advanced manufacturing. LinkedIn reports that over 70% of HR leaders struggle to find candidates with the necessary skills for innovation, such as machine learning expertise or biotechnology R&D experience. This lack of qualified talent not only limits the company’s internal innovation capabilities but also drives up the cost of acquiring specialized skills, making it harder for firms to compete with tech-savvy, innovation-driven startups. Without the right talent, even the most well-funded innovation efforts can fail to gain traction, leaving traditional firms vulnerable to more nimble competitors​.

More innovation-blockers to watch out for:

1. Resource Hoarding: Companies that won’t commit resources to innovation because they’d rather boost this quarter’s earnings than bet on the future are setting themselves up to be disrupted. 84% of execs believe in innovation’s potential for growth, but only 6% are happy with their own innovation performance​. Industries with low R&D investment, like manufacturing (where it’s just 2-4% of revenue), are especially guilty​.

1. Culture of Fear: When efficiency and predictability are rewarded over creative risk, fear of failure runs rampant. The majority of employees—63%—feel their corporate culture doesn’t support innovation​. No wonder so many companies end up stuck in a cycle of small gains instead of game-changing ideas.

1. Talent Crunch: Innovation demands specialized skills. LinkedIn reports that over 70% of HR pros struggle to find candidates with these abilities. The talent gap forces companies to focus on safer, more incremental changes that are easier to implement with existing resources​.

1. Short-Term Investor Pressure: Let’s face it—most investors aren’t interested in 10-year bets. They want growth now. 87% of public companies report pressure for quarterly earnings, leading many to prioritize immediate returns over long-term innovation​.

What’s the bottom line? Innovation is tough because companies are stuck between trying to boost short-term gains and fostering long-term vision. But those that solve this tension win big—think Amazon, Tesla, or Apple.

How Big Players Can “Outsource” Innovation

Large, established companies don’t need to innovate solely from within. Instead, many are finding that they can “outsource” innovation by leveraging partnerships, VC innovation initiatives, and open innovation programs. By investing in or collaborating with innovative startups and specialist firms, these companies gain access to fresh ideas, cutting-edge technology, and experimental flexibility without bearing the full cost or risk. For instance, Apple’s strategic partnership with Corning has been instrumental in the development of Gorilla Glass, an innovation that has enhanced Apple’s products and brand while allowing Corning to secure sustained funding for R&D​. These partnerships can be more agile and responsive than traditional internal R&D, allowing established companies to tap into external innovation pipelines with minimal disruption.

Corporate venture capital (CVC) arms provide another way for big players to participate in innovation without being directly responsible for day-to-day development. By funding promising startups, companies like Salesforce Ventures and Intel Capital maintain a stake in emerging technologies and potentially lucrative markets. Salesforce Ventures, for example, has invested in companies like Zoom and DocuSign, bringing cutting-edge software into its ecosystem without needing to develop it internally​. This approach allows companies to experiment and pivot quickly, leveraging external expertise to drive innovation while minimizing their own risk. Notably, 70% of Fortune 100 companies have established CVC arms, underscoring the widespread recognition of its value as an innovation strategy​.

Innovation labs and incubators are another popular choice for established organizations looking to outsource innovation. These environments, like Barclays’ Rise FinTech Hub, function as testbeds for new ideas, offering startups and internal teams a flexible space to prototype innovation within the financial services sector without affecting the company’s main operations. By fostering collaboration with startups, Barclays gains access to new financial technologies while allowing emerging companies to tap into the bank’s vast resources and industry insights. In this arrangement, both parties benefit: startups get validation and capital, while established companies stay on the cutting edge of innovation in their field​.

Open innovation programs allow companies to crowdsource solutions from external experts, inventors, and even customers. Procter & Gamble’s Connect + Develop initiative is a prime example. This program has produced more than 2,000 product ideas by inviting contributions from universities, suppliers, and individuals outside P&G’s organization. Products like Swiffer and Olay Regenerist have emerged from this collaborative model, proving that effective innovation doesn’t have to come from within. For companies with limited R&D budgets or cultures that lean conservative, open innovation can provide a structured yet external way to stay competitive while drawing on the global talent pool.

• Strategic Partnerships: Look at Apple’s $3 billion investment in Corning’s Gorilla Glass. Apple gets top-notch materials, Corning gets secure funding, and neither has to double up on resources​.

• Corporate Venture Capital (CVC): Salesforce Ventures has bankrolled over 500 startups, bringing emerging tech directly into Salesforce’s ecosystem. This investment in Zoom and DocuSign means Salesforce innovates through acquisition, integrating the latest tech without heavy R&D​.

• Innovation Labs and Incubators: Barclays’ Rise Hub fosters collaborations with FinTech startups, letting them test and refine new ideas. It’s a risk-free way for Barclays to access groundbreaking financial tech without upending its own structure.

• Open Innovation Programs: P&G’s Connect + Develop has generated 2,000 product ideas, including blockbuster hits like Swiffer. By opening up the floor, P&G taps into fresh talent, only backing what shows real potential​.

• Supplier Co-Innovation: Ford’s partnership with Magna International on lightweight vehicle structures highlights supplier collaboration as an untapped innovation goldmine. It’s how companies like Ford integrate new tech without absorbing all the risk.

The Real Role of Investors—Barrier or Enabler?

Think investors are just waiting around for innovation to save the day? Think again. Most VCs want their returns ASAP, especially in scalable sectors with predictable revenue. Roughly 60% of VC investments go to sectors like SaaS—where returns are fast, predictable and easy to quantify​.

Yet there are exceptions to the quick-gains ROI-hungry investors. Breakthrough Energy Ventures, founded by Bill Gates, takes the long view on projects specifically focused on innovating around tech that contributes to reductions of greenhouse gas emissions, knowing these bets will take decades to pay off. This “patient capital” model shows that some investors are willing to back moonshot ideas—if the potential impact is big enough.

Then there’s BlackRock. With $8.6 trillion under management, BlackRock pushes “sustainable capitalism,” encouraging companies to consider long-term societal impact over immediate gains. CEO Larry Fink’s annual letters have gained traction, especially as companies face growing pressure for transparency and environmental responsibility.

Companies can learn from these examples by choosing the right backers. Aligning with forward-thinking investors who value transformative impact can give a company the runway it needs to innovate without compromising on quarterly expectations.

Summary

Success in business is never static. Even industry giants who once defined their markets, ultimately face failure or substantial setbacks by sticking to outdated models. Those that didn’t innovate learned the hard way that clinging to a “business as usual” approach can lead to irreversible consequences that could leave organisations vulnerable to disruption and collapse.

Many companies assume that high barriers to entry protect them, but in reality, these barriers continue to fall across nearly every industry. New players armed with accessible technology, flexible funding, and agile infrastructures are constantly ready to challenge outdated models. 

There’s no denying that typically, innovation is not easy – to ‘do’ or to execute within the cultural confines of enterprises large and small. Established companies often face internal and external obstacles, including short-term investor pressure, cultural resistance, and talent shortages. Yet, successful companies overcome these blockers by adopting forward-thinking strategies like corporate venture capital (CVC) arms and open innovation programs. 

Technology is moving fast. Change is the only constant, innovation is not optional—it’s essential. Leaders must act boldly by creating an internal culture that values creativity and risk-taking or by strategically “outsourcing” innovation through external partnerships and open collaboration. Playing it safe with BAU might feel comfortable, but true resilience lies in continuous adaptation and proactive transformation. Don’t let your company become the next cautionary tale—invest in innovation, both internally and through the right partnerships, to build a legacy that lasts.