Core Insights - Traditional companies can leverage their existing business while innovating, avoiding the pitfalls of solely relying on incremental innovation, which increases the risk of disruption [1][3] - Successful innovation processes in established firms involve three key stages: exploration, commitment, and scaling [3] Exploration: Finding Suitable Startups - Established companies often face challenges in innovation due to their focus on reliable products and services, leading to limited innovation strategies [6] - Many traditional firms have missed opportunities due to their reluctance to embrace disruptive innovations, as exemplified by Blockbuster's failure to acquire Netflix [6] - Successful innovators in established firms follow three practices during the exploration phase to avoid failure [6] Commitment: Leveraging Strengths - Once a breakthrough is achieved, established companies often reassess their roles and increase their commitments, typically through significant investments or acquisitions [10] - Companies should view commitment as a carefully managed upgrade process rather than a binary investment decision [10] - Key questions to assess the viability of an innovation project include the feasibility of the business model, the existence of a supportive ecosystem, customer readiness, and stakeholder support [11][12][13] Scaling: Rapid Action - When a new business model becomes viable, rapid resource mobilization and scaling are crucial for established companies [14] - Investment is often the only factor preventing new enterprises from realizing their full potential, and hesitation can lead to missed market leadership opportunities [14] - Leadership teams can overcome scaling obstacles by involving CFOs early, presenting conservative proposals to the board, avoiding pitfalls of differentiation, and fostering an entrepreneurial spirit [15][16]

Core Insights - Conmed is exiting its gastroenterology business to focus on higher growth margin business lines as part of a portfolio optimization strategy [1][6] - The exit is expected to allow Conmed to align operations and resources on core markets, including robotic and laparoscopic surgery, and orthopaedic soft tissue repair surgery [1] Financial Impact - Following the announcement, Conmed's shares fell nearly 10% to $40.07 per share, down from $43.69 at market open, with a market cap of $1.24 billion [2] - The gastroenterology business was projected to generate revenues of $90 million to $95 million in fiscal year 2025, but the exit is not expected to materially impact overall revenues for the year [6][7] - Conmed reiterated its FY25 revenue guidance of around $1.37 billion and earnings per share between $4.48 and $4.53, with an expected earnings per share dilution of $0.45 to $0.55 in 2026 due to the exit [7] Business Transition - Conmed's gastroenterology business included endoscopic accessories and the VIABIL biliary stent, which it has distributed exclusively in the US and Canada since 2006 [3][4] - The distribution rights for the VIABIL stent will transfer to Olympus Corporation starting January 1, 2026, following a global distribution deal signed in October 2025 [5]