Businesses must be willing to innovate if they wish to remain successful. Starbucks is a prime example of this, as the invention of their world-famous Frappuccino was the result of their own staff’s creativity. By introducing new and innovative products, firms are able to alter the way consumers interact with their goods, services, business models and marketing techniques. In some cases, these innovations can have far-reaching effects and cause a ripple effect throughout the entire industry.
In order to be more efficient and cost-effective, organisations are encouraging their employees to be innovative. Innovation is becoming increasingly important in the current year of 2023, as even small changes can have a major impact on a business’s profitability. With fierce competition and the ongoing effects of the COVID-19 pandemic, it is essential to stay ahead of the game.
In this article, we’ll define innovation, discuss how to welcome it, and list the numerous advantages of doing so.
Is This Really an Innovating Approach?
When a company innovates, they create new approaches or products which either improve the customer experience or add to their profitability. Generally, the business model, product and marketing strategy are the main aspects in which innovation is recognised. All of these innovations should be replicable, scalable and have a significant impact on the business.
Changes in the business modelThe success of innovative initiatives within a company depends on the internal workings of the firm. Although such changes could potentially disrupt core processes and consequently reduce the organization’s income, they also have the potential to deliver significant rewards should they be successful.
Technology advancement in manufacturingis the process of making a product or service that is fresh to the market and, ideally, significantly different from anything else out there.
Creative Problem Solving in AdvertisingThis company assists businesses in broadening their customer base and accessing previously untapped areas by creating innovative applications for existing products. It often incorporates innovative ways for businesses to interact with clients.
Implications of Innovation
An article from ToughJobs reveals that the most common attribute of top-tier organizations is their ability to embrace innovation. This is bolstered by the success of companies like Apple and Microsoft, who have introduced game-changing products and services. Uber and Airbnb are further examples of how revolutionary services have transformed the way consumers view transportation and accommodation.
It is essential to be able to implement new ideas for the creative process to be successful. The tagline for a ToughJobs piece states, “No one ever achieved anything big by playing things safe”. However, this does not mean taking risks without consideration. Netflix is a great example of this, as they took a gamble that customers would prefer receiving films by post, and this strategy was so successful that it caused the less innovative companies such as Blockbuster to be driven out of the market.
There are several upsides for innovative businesses:
Efficiency is improved.While improvements to mundane tasks may not get much attention, they may save significant amounts of money for businesses.
Recognizability of the brand.Businesses who provide novel goods, services, or methods of delivery are seen as industry leaders.
More money coming in.Generally, forward-thinking businesses are always looking for innovative ways to meet their customers’ needs. Customers who are satisfied will be more likely to return and recommend the business to others.
How to Encourage Creative Thinking
Companies should actively encourage employees to be innovative. The example of the Frappuccino illustrates how essential it was for the team to produce and sell the drink locally, in order to prove its potential and enable a national rollout. Due to the clear advantages, senior management gave their approval straight away.
Companies that are committed to innovation have established processes for encouraging ideas from all employees. It is not simply a benefit for their staff; it is a fundamental part of their approach. Some of the methods they use to achieve this are outlined below.
Get the word out that new ideas are welcome.Encourage leadership to integrate innovation into the company’s marketing, recruitment and onboarding processes. Inspire team members to put forth ideas for new products or ways of working and to consider alternative approaches to traditional methods.
Switch the word “failure” for “improvement.”It is important not to view the situation as a failure when team members present ideas that do not succeed. Instead, consider it a step forward in understanding what works and what does not, as well as providing opportunities to further improve upon existing ideas.
Come up with new avenues for innovation.It is important to actively promote creativity, rather than waiting for it to appear. Holding competitions in which the best ideas are recognised and rewarded can be a great way to encourage creativity. Acknowledging the contribution of everyone’s ideas is also important to show that all opinions are valued. To further capture the creativity generated, a shared journal can be used to document and share thoughts on the event.
Give lessons on how to think creatively.It is important to ensure that all team members have the necessary skills to be able to interpret their environment and generate new ideas. To aid in this, seminars and other educational opportunities should be provided in order to demonstrate how this approach can benefit their daily lives.
Act bravely.Inventions are only defined as something that is put into use. Anything else is simply an idea. Whilst it is understandable to be cautious when considering the suggestions of your team, it is necessary to take a risk in order to reap the rewards that both the company and its employees can benefit from.
A lot more than just a trendy phrase
Businesses should not simply use the term ‘innovation’ for the sake of it. They must incorporate it into their ethos and long-term strategies if they wish to have a better chance of thriving. Those that innovate are setting the standard for their industry, setting the bar for their competitors. Furthermore, they are more likely to attract the highest calibre of talent, which is essential for sustained success.