The importance of scale with innovation

Many people believe that innovation is solely the domain of startups, and that disruption arises from the edges of established businesses. However, this overlooks the crucial fact that for an innovation to truly make a difference, it must be able to scale. Travel is a prime example of this principle. A successful vacation is contingent upon an intricate web of accommodations, airlines, payment systems, local business relationships, and technological platforms.

Often, these components operate across international borders, each governed by distinct regulations and practices. Streamlining this experience necessitates the coordination of a worldwide network of partners, systems, and data. Innovation opens up new opportunities, while scale brings those opportunities to life as dependable, worldwide experiences that people can rely on.

Yet, scale also presents a paradox. As businesses expand, they acquire the resources, expertise, and reach to tackle more intricate challenges. Yet, this growth can simultaneously hinder innovation. Decision-making may shift from chasing new opportunities to safeguarding existing successes. For large organizations, the challenge lies in maintaining the qualities that initially propelled them to success: curiosity, agility, and a readiness to question established norms.

This mindset must permeate an organization's culture. The most innovative firms foster a collective sense of purpose, empower teams to challenge the status quo, and place customers at the heart of decision-making. Moreover, experimentation is equally vital. Scale and experimentation are not mutually exclusive; in fact, the larger the scale, the more opportunities there are to experiment.

Large enterprises can learn from a broader range of customers, markets, and behaviors. However, they must establish the conditions for continuous learning, including testing and adaptation. Leaders must balance fostering inquiry and encouraging ownership while also ensuring teams maintain a balance between speed and rigor, creativity and discipline, and short-term execution and long-term thinking.

Innovation is not an isolated endeavor; it is influenced by an organization's culture and the broader business environment. The most innovative economies create conditions that enable businesses to start, compete, invest, and grow. Globally, ecosystems come together to create synergies, including access to capital, dynamic investment environments, entrepreneurial energy, top talent, research excellence, and regulatory frameworks that both support innovation and foster trust.

Today, the relationship between innovation and scale is most evident in the field of generative AI. This technology is progressing at a rapid pace, generating new possibilities for how individuals discover, plan, book, and experience travel. Developing a compelling AI application is the initial step. However, translating this innovation into trusted experiences for millions necessitates careful deployment, robust governance, and deep relationships with customers and global industry partners. Additionally, large organizations must learn and improve responsibly at scale.

Ultimately, every organization bears the responsibility to consider not only what they can build but also how to build it. This responsibility becomes even more pronounced for organizations operating at scale. Scale magnifies impact, for both positive and negative outcomes. Therefore, organizations must embed ethics, trust, and integrity from the outset.

Over the past three decades, the author has discovered that innovation and scale are not opposing forces. The real challenge is ensuring that growth enhances an organization's capacity to innovate rather than diminish it. This requires leaders who remain curious, organizations that continue to experiment as they expand, and policy environments that maintain open doors for competition, investment, and entrepreneurship. Glenn Fogel, the CEO and president of Booking Holdings, emphasizes this point.