Innovation in Business
Jibran Bashir × April 26, 2018
Today in a fast moving world, one of the most required and essential component of any business is “New Ideas” to keep operations, products and services attractive and alive. Often, many of my clients ask me that “Do new Ideas really matter? We don’t think so; we are into the business from last so many years with same product or service or processes, but we are still surviving.” I usually answer them yes you are surviving, but where is the growth?
Yes, in actuality, for GROWTH of the business, INNOVATION is required. And here GROWTH means, sustainable growth with multiplications of businesses resulted in creating more and more creative products or services to facilitate mankind and obviously improving the bottom lines. Now what about INNOVATION in business? This blog mainly focuses on the answer to this question. Now let’s explore together.
What is Innovation in Business?
Innovation generally refers to changing processes or creating more effective processes, products and ideas. For businesses, this could mean implementing new ideas, creating dynamic products or improving your existing services or business processes. Innovation can increase the likelihood of your business succeeding.
Sources of Innovation
The 7 sources of innovative opportunity were listed by Peter Drucker in his book “Innovation and Entrepreneurship.
The following are his 7 sources of innovative opportunity.
The market place is the number one area to look for opportunities. A good manager should be engaged in constantly studying the market. Is a particular product or service in greater or lesser demand than anticipated? Why? Is there a way we can exploit this unexpected success? What has to happen, if we want to convert this success into an opportunity?
There is a discrepancy between what is and what should be. This is a key to developing wildly successful businesses, but it’s tricky. One of the best places to look for incongruity is in your own customers. Their complaints and unmet wants are all the hints you need.
Process need involves identifying your company’s process weak spots and correcting or redesigning them. This is a task oriented solution meaning that the source of innovation comes from within your existing capabilities and ways of doing business – not the market.
Industry and Market Structure Change
Your industry and the market are in continual flux. Regulations change and some product lines expand while others shrink. Firms should continually be on the watch for this.
We constantly notice changes occurring in populations; income levels, human capital (education) and age ranges. Smart firms are constantly paying attention to this.
Changes in Perception, Meaning, and Mood
Over time populations and people change. The way they view life changes, where they take their meaning from, and how they feel about things also is modified over time and smart companies must pay attention to this in order to capitalize (and avoid becoming forgotten, a relic of the past).
New knowledge is about more than just technology though; it’s about finding better ways of doing things and improving processes. Your company should look to this new knowledge for ways it can improve incrementally.
It’s a time of Disruptive Innovation
Disruptive innovation is a term in the field of business administration which refers to an innovation that creates a new market and eventually disrupts an existing market and displacing established market leading firms, products, and alliances. Disruptive innovations tend to be produced by outsiders and entrepreneurs, rather than existing market-leading companies. The business environment of market leaders does not allow them to pursue disruptive innovations when they first arise, because they are not profitable enough at first.
Dear current and upcoming entrepreneurs think on the above lines and let’s come up with innovative ideas. Innovative Ideas will create Innovative businesses; these businesses will serve customers with creative products or services, resulted in more satisfied and delighted customers. And satisfied plus delighted customers mean more revenues and more profits in the business. Also, more profits usually lead and motivate entrepreneurs to act as philanthropists and social activists to serve the mankind in more beneficial and creative manner.
Best of Luck to all for their Creative Initiatives, this blog is just an ignition to think and move on.