What is business innovation and why is it important?
Read on to learn not only what business innovation is, and why it is important, but also the ways in which it can benefit you.
When we talk about business innovation, we are referring to the moment when companies implement new ideas, processes, products, or services, with the intention of boosting their bottom line.
Within this concept we can include launching new and improved services or products (which can generate a greater amount of revenue), as well as making an existing process more efficient, or solving a business problem (the latter two reduce costs and save time).
Aspects that drive business innovation include commercial approaches within an exchange of ideas, design thinking, or setting up an innovation lab. The element that is used as the key is the need to boost a company’s revenue.
Now that you know what business innovation is, let’s discuss a bit about what it is not. The fact is that the term “innovation” has become such a controversial topic that, in many cases, its real meaning is lost.
There are people who use this word as if it were a fad, simply to announce that they are using the latest technology, or that they will make modifications for the sake of achieving a change. However, it is limited to changes in the core business to generate growth.
So, the next time you are going to use the phrase business innovation make sure you are using the right term. Because it is not the only way to make an improvement, or a change, in order to get a positive response from the public.
To talk about the importance of business innovation we must understand that every day we face a market that only becomes more competitive, that is why innovating is gaining a higher level of relevance for every second that passes no matter what your niche is.
For many, innovation has become a kind of engine that drives the transformation and growth of companies. If it doesn’t, that’s when we find that companies become stagnant and, in some cases, disappear altogether.
Today, thanks to innovation, we have the possibility of taking advantage of resources in order to obtain greater benefits, both in the economic aspect and in the social or reputational aspects, in the event that this is one of the company’s interests.
It is then where we understand the relevance of business innovation in an entrepreneurial ecosystem, and is that being at the forefront of the needs and trends of today is more than essential. As well as allowing the use of tools that make the processes a little more optimal, offer new services, products, among others.
When we are able to understand what our customers’ preferences are, and also understand how our competitors work, we have the opportunity to make innovation bring companies, regardless of their sector, better returns through the production of differentiated products and services.
Everything we have explained above ends up manifesting itself in sustained growth, as well as in the offering of new, different, more viable, and replicable products, and adjusted to the model of such operation. This is what helps every company to be in constant progress.
At this point you probably already have an idea about all the benefits it can offer you, but we want to highlight some advantages of business innovation with the intention of putting the idea together a little more. So you may be interested in knowing a little more in depth the following points:
If you decide not to improve your services, or your products, it can put your company at a great risk of losing your clientele to competitors who do take innovation a little more seriously.
If you invest time, and money, in innovation it will be something the customer will notice and also appreciate the additional value you are providing. This is something that usually translates into a noticeable increase in sales.
With business innovation you can get on track to reduce waste in your business, leaving you in a better position to focus on long-term goals, rather than always trying to put out fires, if you know what I mean.
You should make it a goal to consistently find ways to reduce waste. Among the benefits this can bring you are lower costs, better profit margins, offering better customer service, and gaining more competitiveness in the marketplace.
To close this series of advantages of business innovation, as well as the article, you should know that this is a way to anticipate the changes that will occur in the market with greater speed, thus having the possibility to anticipate opportunities.
Innovation can come from continuous analysis of market trends, listening to your customers, including suppliers and consultants, as well as studying what your competitors are doing to detect opportunities to improve strategy and take advantage of them.
In addition, it is often great to look at what similar industries are doing in other countries.