One of the terms that have confused me is “innovation.” This includes how to harness innovation strategies for business growth. This article will explain why your business should be more innovative and create a solid innovation plan.
One reason there is much confusion around the words “innovation,” innovate,” and “innovative” is because they have been used for their total value by consultants, managers, speakers, and management gurus. Although everyone is familiar with these terms, most business executives have no idea how to apply them in their businesses. Innovation is technically “to create something different.”
You can translate this definition into a context for business and get a more helpful report: To create something new, of value, that generates profitable growth and improves the competitive advantage.
In this context, business leaders can see why innovation is so crucial for their company. However, the challenge is in how to make innovation work.
The first steps
To start the journey towards developing an innovative strategy and process, it is essential to assess a business’s or organization’s current situation objectively. This will allow you to create a benchmark of what innovation means for your company. Ask these questions:
- What drives a company to innovate?
- What innovation has the company made in the past?
- What are the company’s strengths?
- How will employees and the culture of the company react to innovations?
It is crucial to understand any company’s motivations for innovation and how they are motivated to implement them before evaluating the various options. The following are few reasons why larger companies are more motivated:
- Crisis more profits are declining, markets are changing, customers have higher expectations, products must be refreshed, services are less in demand, and there’s pressure to find growth.
- Evolution The company understands that innovation must be managed to be successful and unlikely to hit a home run.
- Stay ahead. The company is a leader within the markets it serves; it’s profitable and intends to keep ahead of the competition.
While smaller businesses will not have the same motivations, there are many similarities. It is crucial to find out a company’s factual basis for developing an innovative strategy before embarking on the long, winding road of creating one. To develop a creative approach and process that works, you must consider each one of these motivations.
Innovation activities in the past
It is essential to know what the company has done in the past and what it is doing now in terms of innovation. Here are few questions to help uncover what is happening in a company.
- What has your company’s experience with innovation been up to now?
- What have been the results for these efforts in the past
- Please describe the entire innovation process for your company, from beginning to end.
- Who manages the innovation process?
- What have been the company’s successes in terms of innovation?
- What have been the company’s failures?
Chances and strengths
A company’s strengths should be understood to develop a successful innovation strategy. It’s more efficient to use what a company is best at and the opportunities it presents when developing an innovative strategy than to create a plan that doesn’t have any connection to the past. These are the questions to ask:
- What are the Hidden Assets in a company?
- Which are the most profitable customers that the company serves?
- Which products or services are they interested in?
- What are the new problems these customers face that the company can solve using its Hidden Assets?