_edited.jpg)
Eric Schmidt, former Google CEO, identifies a core challenge faced by large companies: fostering innovation and leadership at the pace of startups. In the past, massive industrial complexes like ITT had huge advantages, but the digital age has leveled the playing field. Today, it’s about agile, innovative applications, like those on Android or iPhone.
Photo: Getty Images
The Power of Platforms
Schmidt emphasizes the power of platforms like Android (with greater market share than iPhone) in creating opportunities for many small, nimble companies. Each app icon on your smartphone represents a company that’s managed to do something exceptional. These fast-moving businesses thrive in a digital ecosystem, capitalizing on the speed and adaptability the platforms provide.
The Difficulty of Identifying Talent in Big Companies
However, in a large company, identifying and empowering the people who can spearhead that level of innovation is difficult. Schmidt and his team spend their days hunting for those icons—people who can lead the charge, break through bureaucratic layers, and drive initiatives forward. This is a perpetual struggle, one that is unique to large organizations.
A Perpetual Problem for Big Corporations
Schmidt explains that despite efforts to streamline and modernize, this problem will always exist in big companies. Large organizations need to organize around talented leaders, much like smaller companies do. However, doing so is challenging because of the sheer size and inertia that comes with large-scale operations. While big companies have vast resources, they often struggle to move as quickly as smaller startups that are more nimble and focused.
Listen to Eric Schmidt:
Comments