Maybe you feel that it doesn’t. Maybe it is enough to be good at other things such as the quality of your people and the service you provide? Maybe you can compete in other ways? No. Quite simply, if your rivals are more innovative than you, they will be able to introduce new services that better meet clients’ needs and at a lower cost. Perhaps with better quality and service experience than yours. Without effective innovation, over time your business will cease to be competitive. It will then cease to be profitable. And finally it will simply cease to be. (Examples of the fate of once high-flying companies like Kodak, Polaroid and Nokia serve as salutary lessons.) The challenge is to take action before it is too late. Looking externally at rivals and at other sectors can be a great catalyst for innovation in your firm.