Creating new ideas, methods, or devices is the basis of innovation. It can be creating something that has never been done before or taking something old and making it better. Every expert you ask may have a slightly different definition of innovation, but they all come out to the same concept.
Innovation is a key to staying relevant in business. It creates an edge over competition that conducts business the same way it always has. Times change, consumer demands change. Organizations can react to changes and discover new opportunities.
All entrepreneurs have an innovative spirit. They will break the rules and standards to create something of value. Innovators take advantage of the latest technological advancements to optimize their own business and gain a competitive advantage.
In business, there are typically three ways to innovate: Revenue, Business, and Industry. Innovation does not have to be a complex matter for organizations. Sometimes it can be a simple tweak of something already offered.
Revenue innovation considers products and services that can be modified, removed, or added. There are other financial considerations, such as changing the supply chain, modifying the target market, or simple price changes. An example is how the telecommunications industry has changed its pricing structures over the years from a rigidly fixed model to flexible models for various needs.
Business innovation takes into consideration the business model that is currently used and if there is a better way to do things. This would include processes, strategies, the mission statement, technologies that can be more effective, and even business alliances. An example would be Lego changing its materials to biodegradable oil-based plastics.
Industry innovation is determining if there are other industries that your organization could tap into that have not been done before. Virtual reality is a prime example of this. Not only was it an innovation in itself but it is also now being used across different industries to tour houses, take roller coaster rides, or even stroll along a beach.
Innovative thinking does not have to be complicated. It can be as simple as a little coffee shop with no drive-through implementing a curb-side ordering system. This was done during the pandemic and the little coffee shop has been booming with business ever since.
If businesses neglect to review the possibility of innovation, they will be left behind by those that do. Listen to what people inside and out are saying about trends, wants, and needs. Open communication to all levels of the organization. Truly listen to what people are saying. You’d be surprised at how many amazing ideas there are floating around.
Want to learn more on how to develop innovation in your organization? I can help.
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