Innovation is essential in Business. How essential?
Let’s start with a quote from Bill Gates:
“Capitalism has worked . . . (but) it has shortfalls. It doesn’t necessarily take care of the poor, and it underfunds innovation.”
Now let’s follow-up that up with a fact:
In 2009, the United States ranked dead last of 40 nations examined by the Information Technology & Innovation Foundation when it came to “change” in “global innovation” over the previous ten years.
Innovation is one of the most critical factors for having a long-term successful business. Businesses that don’t ever change, innovate, evolve, or keep up with the times don’t grow and thus won’t have a future.
The best companies, the ones that are most innovative, are the ones who flow in a constant state of iterative change and evolution. They don’t get stuck doing things the same way, they are fluid, and can turn on a dime. They recognize that “just because they’ve always done things a certain way” doesn’t mean that things always have be done in that exact way. When faced with a challenge, they can change and adapt.
So how does this apply to you?
If you are a sole-proprietor you must keep up with the latest-and-greatest technology, constantly improve your processes, and periodically reinvent yourself and your business. If you keep on doing the same thing over and over again, in the same way, and don’t ever come up with anything fresh or new, you will stagnate and eventually go out of business. Other companies with newer business models will pass you by.
So what can you do to innovate?
Never let yourself get stagnant. Be flexible and open to new ideas. Learn as much as you can, attend industry conferences, and keep up with trends and technology. Figure out ways to apply new technology to your existing business processes. Know what your competitors are doing. This is all part of being an entrepreneur!
The bottom line is if you are doing business the same way you are right now, in ten years, you may be out of business. Like these ideas? Look for more information, tips, tricks and ideas in my new upcoming book Entrepreneur Extraordinaire. You can pre-order a copy by clicking here. Also don’t forget to download a copy of my free report “Top 10 Mistakes that New Business Owners Make” by filling out the opt-in form on this webpage.
Now I ask you:
What do you do to innovate in business?
Have you thought about it?
What new processes or technology have you adopted lately?
Love this post, Karen. But innovation must also be tempered with consistency. Many people call “innovation” jumping from one idea to the next and never really choosing anything, but it’s not. Innovating what you do offer is essential.
For example, I am currently innovating my “50 Places Your Clients are Hiding ~ in Plain Sight” ebook. The first one was good, and this version is going to be even better, because I have innovated it and expanded the material. Some of the new material came from questions my clients asked, too.
I agree with you Amethyst! Innovation is not jumping from one idea to the next. It’s learning how to do things better or doing things in a better way; it’s also applying new techniques, methods, and technology to existing processes. Thank you for taking the time to read and comment. Now how do I get a copy of your e-book?
Being the technocrat that I am, I have a parochial definition of innovation. Innovation involves a change in process or product that results from study and/or experimentation and bringing it to reality. Changing your business operations from paper entry to computer could have been considered innovative two decades ago; now it’s simply routine. Changing the color of your packaging is not innovation (enough of that new and improved bs)- changing your packaging so it implodes into a 1 cm by 1 cm by 1 cm cube when the product is used up would be pretty innovative (if it can still decay in the environment). Answering the phone on the first ring is a process improvement- but not an innovation. Answering the phone on the first ring by anyone in your organization wherever you are and getting the call to the proper recipient in 10 seconds could be considered innovation.
I hope that makes it clear.
Hi Roy,
Thank you for your comments. I agree with your definition of innovation and hopefully that’s what came across in my post! Speaking of “new and improved” have you read “Free Prize Inside” by Seth Godin? The concept behind the book is that most major inventions have already been invented, it’s the softer improvements that will move businesses forward in the future. What are your thoughts on that?
Karen
I completely agree with everything you wrote in this article and also with Amethyst’s statement that innovation has to be tempered with consistency. What good is it if you do a bunch of new things every, single day?? You’re no benefit to yourself or to others who may be looking to you for an example.
Sometimes, innovation can be as simple as finding a new use for something that people already use one way. This is making me think very hard about what I need to do next in business. Thanks so much for challenging us and also encouraging us to think a little more outside the box.
Yes, outside of the 1×1 box that implodes on itself.
So glad we got outta there alive! 🙂
HI Christi!
Thank you very much for your comments! I really appreciate your taking the time to read my blog and also for your kind words. I am glad to know that my work (writing) is challenging for business owners!
Karen
Karen!
Thank you for picking this subject and your post. It reminds me of one of my favorite Peter Drucker quotes “Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs.”
Yes, innovation is crucial (even more today than in the past). However, I agree with many of the comments that people need to recognize when they are being seduced by the “bright shiny object syndrome” and either are in a constant change/innovation flux or are paralyzed because something new just hit their inbox or was recommended by someone to them. It’s incredibly important to get and stay laser-focused on the RESULTS you are trying to produce for yourself and your business and ensure that any changes/innovation you are introducing is consistent with your short and long term vision.
Thank you Terri! I appreciate your comments – I too love Peter Drucker! Very relevant in this case.
Excellent post! As a product marketeer, life-cycle-management (LCM) is a critical consideration for every organization and innovation is at the core of that process. Great insight.
Thank you Tor! I really appreciate your feedback, and your taking the time to read and comment on my post. I am honored!