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One of the biggest challenges for public companies is that they are constantly asked to meet quarterly expectations while also innovating into the future. In the tech space this is even harder. Even though it seems like innovation and disruption is happening overnight, it takes more than a day or even a quarter to bring meaningful innovation to market AND have financial results to prove it is working.
This is why I believe the Dell and Dell EMC merger (Dell Technologies) will work out so well. With Michael Dell committing to 4.5 billion dollars for its annual R&D budget, the company is going to make significant spending in continuing to drive meaningful innovation to its products and services. All the while not having to be as focused on the short tail.
I also am confident that this trend will become more pervasive in coming years as companies seek to have more liberty to innovate and “Self-disrupt” without being pummeled by investors that don’t have the vision or wherewithal to know whether or not they are on the right track.
Over the next 18 months we will see if this strategy pays off as long-tail innovation becomes the focus and the combined vision of the two giant companies clearly becomes one cohesive strategy.
Daniel Newman is the Chief Analyst of Futurum Research and the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise. Read Full Bio