It is sure that any form of innovation can take your company to a higher level. It may bring the market leadership to your company. But it is equally important to do sustain innovation. Innovation once done and then cling to that, will not result in milking the cow in future. Instead it destroys what you have innovated.
A market leader has enough fund to spend on innovation. It continues to be the market leader (using established technology), with the additional cost incurred in innovation. But after some time, it will reach a point where further investment will not bring any difference. This is because the existing market leader may think that their opponents are not in a position to challenge them. Also there is limitation in the technology it is using. It cannot afford the new technologies as time and investment progresses. But the reality is start-ups(new rival) can challenge the market leader (‘The S-Curve: An established technology and new rival’, Managing Creativity and Innovation, HBR). Start-ups do not have anything to lose. And they will always invest new technologies. Here the challenges are they will start a little bit late and have to invest more in new technologies. The other side of these challenges are advantages. Starting late in an innovation project enable them to use the latest technology. Also using latest technology will leverage their innovation and business. That means even if you are innovating, but with existing technology will face competition from new rivals who are using latest technology. Then think of what will happen if you are not innovating at all!
A best example for an established company which innovates all the time is Apple. As a result, they were able to come up with different innovative products like iPod, iPhone etc. But coming to cell phone market, Motorola could come up with MotoRazer, MotoYuva etc. Even then they are not able to keep innovation as that of their competitors and hence are forced to move down in the sales of cell phones. A great vision is always required for innovation. If you failed in having a greater vision at any time, will result in lack of innovation. This eventually falls your revenue. To sum up, not innovating over a period of time is harmful for the organisation.
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