15inno: Business Innovation
Many people describe business innovation as the latest technology. However, it is more of a means of driving revenue, a business that want to thrive should be ready to accept and adapt to changes.
Since technology is everchanging, innovation is essential in helping companies remain relevant and ahead of their competitors. In this eCommerce era, companies like Amazon are a clear example of the true essence of innovation, by rapidly adapting and improving, this eCommerce giant has become a dominant force in the space.
Innovative companies use top talent to prepare for the future and meet the demands of consumers. Business innovation is, therefore, a process of creating something new that will help a business fulfill its financial and social goals.
Understanding The Basics Of Business Innovation
Innovation means coming up with new ideas, concepts, methods, etc. In business innovation, companies create these new things intending to earn money. It, therefore, involves adapting new ideas, services, products, or processes with the intent to boost an enterprise’s revenue.
A company can launch a new product or service that can make it more money or can solve a current business issue that could reduce the cost and effort or can adapt ways of making its current processes more effective. Anything an enterprise does to improve its earnings/workflow is described as business innovation.
However, note that the term innovation in the business world is often used to mean Research and Development (R&D). But R&D is usually limited to new products, while business innovation includes all kinds of improvements that a business does.
What Is Not Business Innovation?
Since innovation is a hot topic, sometimes it is referred to in the wrong context. Many people describe it as using the latest technology, however, when it comes to business innovation, efforts are limited to changes that make a business grow and earn more profits.
How Does Business Innovation Work?
Business innovation manifests itself in four different ways, innovation of a product, a process, a marketing method, or an organizational method.
Product innovation is simply creating new and improved products. Here, a company can either improve the existing product or make a new one that will likely attract customers.
Innovating a process is when a business adapts new ways of delivering its service or product. It thus involves changes in equipment, software, or technique.
Marketing innovation refers to the appearance of a product. An enterprise may use different packaging, change the price of a product or its ad campaign.
Organizational innovation is the steps a company takes to better its performance. It could be an internal change to its practices or an external one to the way it relates with its customers and other entities.
The Importance of Business Innovation
This is the goal of business innovation. An innovative and socially conscious company attracts more customers than one which is not. Also, since innovation helps companies evaluate ways of attracting new companies and increasing their revenue, it helps them grow and increases their stability.
Additionally, business innovation makes your businesses stand out. A company will be doing something that has not been done before, or even if it has, it will do it uniquely. Therefore, if your business innovates more, it becomes more unique. Standing out helps your company thrive in a competitive market.
Helps a Business Attract and Retain Talent
No one enjoys working with a company that is not growing. Innovation creates a perception that your company is fast-moving and mission driven. When millennials and Gen Z are convinced that your company has a bright future, they will be willing to work for and with it.
Makes a Business more Efficient
Process innovation helps improve the current business’s processes to consume less time and money and makes them more reliable and sustainable. Such adaptation not only saves time but also allows a business to adapt to the industry shift easily with minimal risks and volatility.
Planning and Preparing for Disruption in the Future
Business innovation involves analyzing where the market is headed by evaluating the changing consumer demands and potential disruptors. Using this information, a company can prepare its employees to be more entrepreneurial. Enterprises can make changes like creating a new product or service like the one startup companies are making or buying the product or service from those selling it or partnering with the upstarts to help build the company.
How Are Different Industries Embracing Business Innovation?
All companies can benefit from innovation. Let us look at some examples of business innovation in different industries.
Insurance- digital insurance tools have made it easy for customers to find the service they need and file claims. Some apps can help one get a doctor, determine the cost, and access telemedicine services.
Law- legal work involves a lot of paperwork. In the past, lawyers used to go through different documents to prepare their cases. However, now thanks to digital tools, lawyers have become more organized and efficient. These tools help them evaluate and focus on high-value tasks that can make them more money.
Finance- Financial Technology (FinTech) has simplified the process of handling money. You no longer need to queue in a bank to deposit cash, open an account or make an investment. Instead, you can do these things from where you are using your smartphone. Also, businesses no longer must rely on customers paying with cash alone. As they can accept digital payments made with debit/credit cards.
Consumer- companies are now manufacturing more sustainably, which has improved supply chains. Since consumers are looking for sustainable products, manufacturers have been forced to adapt to this trend.
Transportation- everyone needs to move here and there. Therefore, transportation is an integral sector that contributes to a significant percentage of gas emissions in the environment. Due to this, individuals have adapted to innovative solutions like using electric cars or electric scooters.
Business innovation is something that your company needs. But although it is different for all companies, some common pitfalls can be avoided to make it more successful. If you are thinking of making your business innovative, we advise that you have a solid strategy and plan for everything. Consider your business goals and how innovations can help achieve them.
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