Innovation is a fundamental added value for any company. It is often what makes the difference in conquering a market or staying competitive.
What is innovation?
In essence, innovation is synonymous with novelty. But the concept should not be confused with invention! Above all, innovation is about improving a process, a product or a service. There are many examples of innovation in business. Innovation can be based on new technology, but it’s not enough. It requires us to question existing methods in order to reinvent ourselves, and to use our imagination to adapt in order to improve both the company’s operations and the customer experience. For an innovation to bring real added value, it must generate novelty and be adopted by those for whom it is intended customers, employees.
This video can explain it:
The benefits of innovation for the company
Gaining a competitive edge: In an ultra-competitive environment, innovation is key to offering customers products or services that perform better or are more attractive. Innovation is the key to standing out from the competition and winning the battle for customer preference, particularly among target groups. An innovative marketing strategy can make just as much of a difference as a technological innovation.
Improving competitiveness: Innovation may be completely invisible to the customer, but it may involve the company’s internal processes. Changing production methods, developing employees’ skills or relying on more efficient technologies will improve competitiveness and generate savings. Innovation will enable the company to offer better-quality products and services, or more aggressive pricing.
Opening up new markets: Innovation is part of a company’s development strategy. The role of innovation can be to extend the company’s range of products or services, and thus the market in which it operates. For example, innovation can help you move upmarket or position yourself in a buoyant market, as it can help you adapt more quickly to changing demand.
What role does innovation play in corporate strategy?
In the collective imagination, innovation is driven by a project leader, an entrepreneur who creates a company around his or her idea. However, the latter must be able to continuously improve its organization and its products or services if it is not to be outdone by the competition! It is therefore important to spread and nurture a culture of innovation throughout the company.
The operational difficulty lies in taking a step back from your business to stay alert to changes in your sector and new market expectations. This means setting up a strategic watch to monitor trends, observe competitors’ practices and anticipate technological upheavals. This information feeds into the innovation process, validating or stimulating new ideas.