Innovation is the systematic practice of developing and marketing breakthrough products and services for adoption by customers.
When you think of innovation, what springs to mind? Maybe it’s a flashy new gadget—but don’t be mistaken. There’s much more to the world of innovation, which extends far beyond new products and things you’ll find on a store shelf.
If products alone aren’t the full story, what is innovation? In a business context, innovation is the ability to conceive, develop, deliver, and scale new products, services, processes, and business models for customers.
Successful innovation delivers net new growth that is substantial. However you measure it, innovation has to increase value and drive growth.
As important as innovation is, getting it right can be challenging. Over 80 percent of executives surveyed say that innovation is among their top three priorities, yet less than 10 percent report being satisfied with their organizations’ innovation performance. Many established companies are better operators than innovators, producing few new and creative game changers. Most succeed by optimizing existing core businesses.
The economic innovation is like a garden; it takes hard work, dedication, and time to nurture the seeds of creativity that will grow into something beautiful. But when it does blossom, the results can be breathtakingly stunning.
85% of economic growth is fueled by innovation, so it’s impossible to stay on top without embracing it. From new ways of doing business to groundbreaking advances in technology, there is no limit to what we as a society can accomplish when we commit ourselves to stay ahead of the curve.
How to Economic Innovation
Change is inevitable, but the right focus on innovation can result in positive changes.
The economic innovation posits that knowledge, entrepreneurship, innovation, technology, and collaboration are the key drivers of economic growth. Companies can increase their value by creating new ideas which can be developed into products, services, and business models that bring us collectively into the future.
Companies are able to promote this growth by investing in its core tenets.
1. Fostering Creativity and Collaboration
The process of democratizing innovation allows companies to come up with high-impact ideas faster than ever. Your customers and employees are your biggest allies and resources as you build the “next big thing.”
2. Investing in Disruptive Technologies
Disruptive technologies are those that change the game entirely or deliver results faster and cheaper than traditional methods. The use of new technologies such as artificial intelligence, quantum computing, and blockchain can open up entirely new avenues for products and services.
3. Encouraging Entrepreneurship
An innovative economy thrives on entrepreneurial spirit. This can range from small business owners to those creating entirely new industries (or disrupting existing industries and ideas). By encouraging people to take risks and find creative solutions within your own company, you can tap into the power of innovation.
4. Leveraging Data and Analytics
The collection and analysis of data is essential to inform innovation strategies. By using data-driven insights, you can make sure your investments are paying off and identify areas for improvement.
5. Making Use of New Business Models
Building the future isn’t just about producing new products and services, but also about how those products and services are delivered. Companies that are willing to consider new business models, such as subscription-based offerings or the use of mobile platforms, are more likely to stay competitive.
