Doing things in the same old way can lead to decay and destruction, even for some of the great companies of old. The answer is to innovate and always to be looking for those things that can make a difference. Picture: REUTERS/ERIC THAYER

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INNOVATION and information are the future of business. But staying innovative is a constant battle. It requires working as hard and as smart as you possibly can to build the best possible product and then, as soon as the market loves it, start over and reinvent it again — but in a way that builds on what made it sell in the first place. Repeat.

But innovation is not limited to products and, increasingly, as it becomes more competitive in markets such as textiles, it focuses on technology and logistics as a way of boosting margins and improving customer service.

In the corporate wear, uniform and personal protective apparel space we have invested heavily in technology that allows our customers to go into their own virtual warehouses, see and draw down their stock, and place orders. Operations and finance staff are no longer the most important people in the organisation — that role belongs to the chief information officer, or as I like to say, the chief innovation officer.

But staying innovative and on top of technology is a very tall order, and the vast majority of organisations fail the test. This is nothing new and has been a factor of postwar capitalism.

Fortune Magazine started publishing its list of the US’s largest 500 listed and privately held firms, ranked by gross revenues, in 1955. Of those only 61, including General Motors, Boeing and Proctor & Gamble, were on the 2014 list. The rest – 89% — were no longer on it, with Studebaker, Packard and Detroit Steel making way for the likes of Facebook, eBay, Microsoft and some major retailers.

By this year, a further 17 companies had fallen off the list.

This pattern is repeated across the globe, with the UK’s FTSE 100 list, created in 1984, having only about 20 of its original constituents present today.

Stock market indices are certainly not a proxy for innovation.

Giant companies are often places where innovation goes to die and the companies that get things done are small to medium-sized, family-owned companies that are free to take advantage of opportunities.

But the fact that so few companies that had been able to grow to a position where they dominate their markets were able to retain their dominance and revenues does point to a lack of innovation and an inability to adapt to change. In turn, this has created space for new companies that are better suited to the challenges of the 21st century.

This process of churn and creative destruction will continue, and most of today’s giants will be tomorrow’s also-rans.

As someone who is running a technology-heavy business that has innovation at the core of its strategy, this is good news. An organisation that is constantly innovating relies on consistently doing simple things well.

Do your research and spend time getting to know your customers intimately. You need to know what they are going to need in the future rather than just focusing on how to meet their needs now.

Copy, borrow, learn from and emulate the best in your field rather than operating on the assumption that your answers are the best.

Think about how what you do can be used in different ways, explore the alternatives and don’t be locked into believing that there is only one way of doing things. There isn’t. And thinking otherwise is the quickest way to ensure that your company will not survive the test of time.

• Robinson is CEO of the Kit Group