Here's Why Innovation is the Key to Success of Any Business
From a small startup to a big venture innovation is the key to success and people who lack this will lose the race of competition
A business is the result of immense hardwork, dedication and perseverance. However, it is not enough to simply have these and then let complacency creep in. The key to any successful business is the ability to come up with fresh new ideas to keep the operation running and the products and services fresh. This influx of fresh ideas into the business on a regular basis is known as innovation. Innovation plays a very important role in any business venture.
While you may think that your enterprise has a unique and exclusive way of functioning, in reality, chances are that there may be many others who have undertaken a similar endeavour and are putting their best foot forward. How do you stand out from the pack then? This is where the concept of innovation comes in. Innovation is about doing something to the best of your abilities, but with a slight twist so that you can carve your own unique identity in a cluttered market. There’s a famous quote on innovation by Steve Jobs. He says, “Innovation distinguishes between a leader and a follower.” Jobs makes a solid point there because innovation is not just about providing new ideas or products and services. It also has a lot to do with modifying existing business models and adapting to changes to achieve better results.
Most importantly, it’s a competitive environment out there. This is why every business – whether big or small -- needs to be innovative to stay competitive. In fact, innovative entrepreneurs have the ability to look at problems differently and come up with solutions which others may or may not be able to. In this way, they provide an endless stream of value to their business.
Here are four reasons why innovation is such a crucial component to the success of any business:
Innovation helps the business grow in leaps and bounds
Deloitte had conducted an Innovation Survey in 2015 which had shown that as many as 66 percent companies had stated that innovation is important for growth. The idea is simple. Businesses that innovate are able to scale up their structure much more. You can do so many other things like adding more employees. Innovation helps you gain more customers and grab a bigger share of the market. Innovation also makes it easier to grow whatever may be the size and type of your business. You may have a small startup, but with innovation, there are so many more chances of growth in the business. The same applies to a company that is listed in the Fortune 500 as well. If a large company innovates, it can take on a larger market share.
Innovation helps make a niche for yourself in competition
The market is huge and it is filled with so many other individual business and companies that may be serving products in the same category as you. Bottomline is: you are far from alone! But among all this competition, you need to stand out in some way. This is where innovation can help you. With the help of the right innovation, you can actually offer something extremely unique to your customers. Another great idea is, you can take some existing product, add your own twist to it and give it a totally different shape, making it several times better than its original form. This is what makes brands stand out in the market and it naturally also means more revenue.
Innovation helps meet customer needs
In a highly competitive market, the needs of customers are dynamic and are constantly evolving. What you are providing them with today may have a great response from their end. But you cannot be sure if tomorrow the situation is going to be the same. They might be demanding something else. Innovative business ideas actually have the power to anticipate market changes even before they actually happen and provide solutions to people even before they feel the need for them. This way your customers are satisfied most of the times. In fact, it’s tough to meet customer needs unless you bring in constant innovation in your business. If you are happy with the status quo and refuse to introduce new ideas, your business may start struggling. It’s a must to come up with new innovations all the time to excite and please your customers if you want your business to stay relevant.
Innovation is important for future growth
Innovation is a very important factor to ensure consistent growth for a business from a future point of view. It has a lot to do with adding newer business models and products that provide an impetus to the overall revenues in the future. Innovation that is sustainable also helps ensure that current products continue to meet the customer demands and also contribute to the revenue growth in the future. A business that is ready to innovate can stand firm even if the market experiences constant vagaries. Such a business is ready to face any challenges that future market changes can bring in.
Once your business is set, it is possible that you may become a little stagnant for some time and enjoy the results you are getting. You may think that the strategy that is working now, will definitely work in the future too. In reality, however, status quo will not work forever for your business. You will have to keep your mind open for fresh, new ideas and be ready to innovate from time to time. It is important to undertake innovation on a regular basis so that you can enjoy the rewards that it brings in the future.