Many studies have shown that innovative companies tend to have larger market shares, higher growth rates and higher profitability compared to competitors who do not achieve the same levels of business innovation ideas. the question is “How to Innovate Successfully?” and to answer this question, defining the word innovation is key.
Some will tend to favour a succinct, rather traditional definition of Innovation as:
“The successful commercial exploitation of a new idea.”
Key to this definition is that any idea that has a positive impact on the bottom line and is exploited to deliver results can be viewed as innovation. This goes far beyond new products or features and extensions of existing products. Innovation can occur in any area of Business and when innovation becomes a recurring habit, accelerated business growth will be the result
What Should be the Focus for Business Innovation?
We often tend to focus on the idea but in fact the need that is met is just as important. Understanding the need is key to identifying meaningful innovation and relies upon a deep knowledge of the markets we serve and our customers, both internal and external.
Focusing on Customer Needs can be More Productive
By understanding our customers and their needs we can focus innovation towards meeting their needs better, quicker and with less effort. Understanding the met and unmet needs of the customer is also a more productive way to filter ideas when there are too many to cope with.
How to Innovate Successfully?
Studies have identified three broad pillars of innovation that any business can to put in place to help it innovate successfully.
2 – Using an Innovation process to generate, capture, prioritise and develop ideas
3 – Having appropriate organisational culture that encourages innovation and initiative
To learn more about the three pillars of business innovation please study the complimentary article: