First let me come clean:

• Yes, I love and am a big fan of big global companies (large enterprises)
• Innovation is rampant and a regular occurrence in such companies
• Innovation happens at many levels in large enterprises: brand new innovation and enhancements to existing products
• Startups are fundamentally experimental, with good hypotheses around scaling
• Large enterprise products run in the millions of products by tens of millions of users
• And more…

So, let’s get something clear: Large enterprises are constantly innovating. However, every innovation has to run flawlessly by a massive global customer base. Yes, I am biased as everyday I see the amazing strides that my clients in Defense, Automotive, Finance, the Tech industry, Consumer Products and Electronics and others make. I am continuously fascinated to see how the complex machinery works. So, to say large enterprises don’t innovate is absurd and groundless. While the figures for R&D are inflated at times, there is a healthy dose of R&D occurring in large companies, whereas in start-ups, R is embedded in D!

Here I have to digress: Let’s talk about the ‘cool-factor’… the notion that unless I am more hipster than not, am always multi-tasking, am below the age of 30, unable to sit still without a device in my hand, and have piercings and tattoos that I am not cool-enough to brilliantly innovative is a false one! Seriously, …genius comes in many different packages. To me ‘cool’ is to see brilliance in action: from the time I started my career in a think tank, BBN (where our motto was “smart people solving complex problems”), all the way to this last week when I was sitting in a room of brilliant researchers and engineers with one of the top global auto companies. I was blown away with what they have done and continue to do in a scale of millions. That is as awesomely cool as are start-ups, but no need to assume that cool comes only in one style! Embrace who you are and how you impact innovation.

Now back to innovation and large enterprises: The better question to ask is if we have enough diverse disruption and innovation, and if innovation is fast enough? The business model in large companies is supported by sales & revenue, while in start-ups, it is supported by continual rounds of financing in hopes of large revenue. Much of the fundamental technology which we use today has come and continues to come from large enterprises, but our fascination about innovation is focused heavily on start-ups. Don’t get me wrong, I love start-ups and invest and work with start-ups globally, but innovation happens everywhere. Yes, we need to raise the bar and speed up the pace, diversity & timing of innovation in large companies, but to my friends in large enterprises I say: Never forget you are amazing innovators!

From my over two decades of immersion in large global enterprises, what is lacking is not innovation but rather inspiration & invigoration. Why? The pressure to be perfect in delivery and increase sales, kills inspiration. If you cannot be inspired you will not be invigorated. These two parts go hand in hand. Deliverables, deadlines and schedules, at times, does not leave a moment to breathe, nevertheless inspire oneself or others—- this is where our focus should be going. People talk about the politics in large companies, and I invite you to see the ego & politics in start-ups. I am a fan of both, but perhaps a bit tired of hearing the phrase: large companies do not innovate! That is simply wrong.

I recently read Whitaker’s blog on why he joined Microsoft and that sparked some thoughts. I don’t agree with all the points, but there are some good points being made.

Microsoft approaches its 30th birthday. Google and Yahoo over 10 years old.  Many more companies maturing.  Let’s face it –  the face of innovation is changing. Along with the giants that are now in their 20-100th year anniversary, innovation is everywhere! Let’s focus on inspiration and invigoration and change the dynamics of how we innovate! I congratulate all the innovators out there: In every country, start-ups and large companies…you all rock!