Box (BOX) CEO Aaron Levie

Box (BOX) CEO Aaron Levie on why Fortune 500 companies are slow to innovate and adapt

“There’s a lot of things in a Fortune 500 company’s value network or partnership relationships that prevent them from being innovative.  For example, if your suppliers are also behind technologically than fundamentally, you have to go work with a whole new set of suppliers which would disrupt long standing relationships that you’ve had for a very long time.  In the case of Ford or GM, if what you normally do is sell through a dealership network and the future of on-demand transportation or autonomous cars has nothing to do with dealership networks, than fundamentally you’re going to have disrupt your own distribution channels.  And because of the way incentives are designed, you have a lot of organizations that don’t want to disrupt any of their channels.”

 

 

Source: Fortune Interview July 12, 2016 https://www.youtube.com/watch?v=_TQ2-TbEKmg