by   |    |  Estimated reading time: 2 minutes  |  in Creativity & Innovation   |  tagged , ,

If you were about to invest in a company that had about 85% market share for one of the main products in its portfolio, and nearly had market monopoly for another main product, wouldn´t that investment be recognized as safe and profitable in the long term, rewarded by a share price that rises over time?

No. Profitability and stability are not considered share price drivers. A harvest is always the result of someone breaking new ground, which means trying out new things, bringing new things to the market—and being the first to do so.

The company I’m referring to above is Microsoft. About 85% of all personal computers run Microsoft operating system and Microsoft Office can almost be considered to have a market monopoly. In the last  quarter they announced a new sales record with a net result of SKr 45,000,000,000. But that is not enough for investors; the share price has been almost flat over the past 10 years.

The reason for the flat share price is said to be Microsoft’s lack of innovative. Well, at least that is what the market says…and who is the market? Please read this post to get Dan’s view.

Whether you are on the stock exchange or not— as a company you are judged on your ability to innovate. And who‘s on the jury, returning verdicts of “guilty” or “not guilty”?

When customers, investors, analysts or journalists judge your company and your products, coming product innovations are crucial. Looking at your own product portfolio and innovation strategies, are you better than or equal to your competitors? Actually, it doesn’t matter what you think. You have to make sure that customers, investors, analysts and journalists can smell the spirit of innovation within your company. That spirit cannot be forced on anyone; it has to be experienced by everyone throughout the company.

Being creative and innovative is about daring, having a company culture that allows people to think and act differently, and allowing people to make mistakes. Only then will employees feel the passion and energy to make the extra effort that transforms ideas into cutting-edge innovations—faster, and over and over again.

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