Today every company says that it values novation and tries to endorse the spirit of innovation in their team. But the reality is that very few companies know how to foster innovation in their enterprises and how to get profit out of it using innovation theories of entrepreneurship. In this article, we want to describe some of the most effective tips and methods to improve innovation in your enterprise.
According to Doblin, an innovation consulting firm, 96% of innovations established by companies do not make a return on investment.
Innovation management is a varied matter with numerous levels and measurements. It is a mistake to consider innovation as an abstractive conception. You should consider it as an interdisciplinary area of study that has a wide range of various patterns, structures, and theories.
We are firmly convinced that a basic understanding of the general ones helps to comprehend this complex issue and will be employed as a guidance when evaluating innovation and analyzing everything related to innovation.
You can be sure that knowledge about the general ones helps to understand this complex issue and may be used at evaluating innovation and analyzing novation-related appearance.
As business is looking for brand-new approaches to find more customers, increase revenue and develop better products in nowadays increasingly competitive market, the world’s largest companies are striving to implement ongoing corporate novation. Many eminent companies resort to innovation theories of entrepreneurship to foster their growth and development. From MVP to a complex ecosystem – devotion to a company innovation strategy provides limitless opportunities for development.
Innovation is crucial for success basing on the last study showing that 91% of managers say that the longstanding prosperity of their company is based on their skills of strategic thinking and generation of fresh ideas. Nevertheless, as there is so wide range of innovation theories of entrepreneurship, how to find the one that fits for your company? And even more important, which corporate novation approach will boost your company to the rapid and most qualitative development?
The very first question that arises to any executive willing to implement innovation in his enterprise is how to organize a novation process. And innovation theories of entrepreneurship gives us answers to this question. Now we want to consider Best Five Innovation Models:
1. Startup&Corporation Collaboration
In many cases, partnerships between startup and corporation result in great opportunities for business novation. These cooperative possibilities provide for inestimable advantages of working with the most progressive startups in their particular industry. More often, startups are much more agile and flexible in discovering, testing and implementation of new techniques that rapidly shape the process of conducting business. Thus, companies accelerate the innovation period and get key insights about brand-new technologies.
Many cooperation programs between startups and corporations follow a particular schedule. Corporations and startups work jointly to launch pilots, MVPs and validate hypotheses and finally introduce finished products.
2. In-house Accelerators
In order to satisfy their personal requirements and goals some corporations maintain their own startup accelerators. The main advantage for such enterprises is that they can collaborate with startups that fit strictly their needs. The last research shows that more than half of 165 incubator programs in Great Britain are currently backed or subsidized by corporations comparing to only 27 five years ago. Such accelerators endorse about 3500 companies annually and embody a big and significant part of the startup-corporate ecosystem.
3. Innovation teams
In-house innovation teams is another approach many companies resort to. The aims of such teams include investigating, spreading and organizing corporate innovation operations in accordance with innovation theories of entrepreneurship. Such an organizational approach for innovation allows corporations to be aware of the newest trends in innovative technologies. Furthermore, using this model makes teams more linked with company novation aims and plans. The complexity of this approach is that probably the business will require to encourage additional human resources which is, depending on the lifecycle and matureness of the company may be quite insubstantial.
You have to hold a meeting with company stakeholders to understand if this model fits for your corporation and answer the following questions: Do you want to generate innovations inside your company? Do you have enough available budget for launching, testing, managing and maintaining the internal innovation team? How this will affect your regular operations? Consider carefully your company’s internal framework, strategy, funding, predictions and other important issues.
4. Brainstorm Groups
Such a group consists of concerned parties coming from different industries and companies. The main advantage of this novation approach is that companies get an exclusive and different vision from professional business innovators. Networking and collaboration possibilities are additional priceless benefits of such a joint innovation model.
Indefinitely of what particular field you conduct business in, probably the major things that differentiate you from others is your circle of connections. The extent of our network is the best forecast for your future success.
Anyone who wants to resort to this organizational form has to know, that these groups, as usual, are basing on the theoretics, not praxis. Most likely, the duty of the application of this theory is laid on the company itself. A brainstorming group can just help you to develop a novelty product, but it won’t design it for you. If you want to see the real results in the predictable future it is better to choose another model of innovation.
5. Acquisition of startup
In many cases, purchasing is the simplest way to stimulate corporate innovation. According to this model, companies just join to other businesses. As a rule, mergers are conducted between big corporations and small companies due to a wide range of causes. Consider the following benefits of this novation model to determine which of them fit for your business’ purposes and objectives:
- Expansion to new industries and markets
- Increased possibilities to develop new products
- Obtaining crucial talents and managing staff
- Significantly increased financial resources
- Ownership of innovative patent rights and licenses
Realize Corporate Innovation Advantage
These effective and working corporate innovation models will definitely serve your company’s novation performance. Just as any other crucial business solution, it is important to consider scrupulously and choose innovation model for your enterprise and to match it with your current business structure, patterns, operations and more. Be ready that the right choice of corporate innovative model will require certain spending of resources, time, energy and curiosity.
Source of the innovation
Usually, innovation refers to one of the following group by the source of innovation:
- Business model innovation
- Technology innovation
- Marketing innovation
Business model innovation
This source of innovation concerns the competence to amend your present business model to profit sources and cultivate your strengths. There are two approaches to act in this way. The first one is to refine your current business model and the second is to find a more effective and appropriate one.
We have seen many previously prosperous businesses that failed to conduct business model innovation because they were engaged in their day-to-day operations instead of looking into future novation opportunities.
Could these companies save the situation? Probably yes. They should attempt to change the main hypotheses and the predominant view in the industry to develop new lucrative opportunities.
Fortunately, there is a systematical approach for business model innovation:
- Conduct an audit of your present business model
It is important to determine what is your objective industry, audience and market. Understand how exactly you generate your income and design your basic valuable offer. To simplify this process use numerous business model constructors.
- Dispute your present business model
Be involved to challenge your present suppositions and approaches of doing business. It is so helpful to dispute traditional views in order to deliver unconventional and inventive ideas esp. in case of a lack of creativity.
- Establish the conformity of a business model
Your renewed business model should be in conformity with your strategic view of your company.
- Make a prototype and don’t put off to check it
Make new attempts considering the previous data and keeping in mind earlier fails and success.
A widespread misinterpretation is that achievements in innovation are usually backed by unaffordable and expensive technologies.
The creation of beneficial changes doesn’t automatically call for the professional tech staff or enormous expenditures on tech. Nonetheless, most of the grand novations still employ new technologies in different ways.
At finding a distinguishing advantage and rising revenues technology is the main contributor in the majority of industries.
Otherwise stated, technology innovation is:
Creation of fresh ideas applying technology, capacity or skill to generate improved solutions to cover current or possible needs and to advance this idea to a workable unit.
New technology usually employed to:
- Boost your innovation operations
- Benefit from new potential
- Create concepts and convert them into inventions
- Design your product/service for the market
- Check and validate these fresh conceptions
Another big advantage of tech novation is that it is not necessary to start from the very beginning. In a lot of cases a tech feature designed to be used for one purpose, unexpectedly starts to be used in completely different situation. If you want to do the same, start noticing brand-new technologies that surround you and can be adapted and employed in your specific case.
As you wish to achieve success, you should consider marketing novation seriously as product novation.
And it is quite self-explanatory, as there is no reason to waste resources to develop a product or business model if no one can detect it and use it with benefit.
Some people don’t understand that marketing innovation is not simply about how to choose appropriate new channels and techniques to advertise your product, but about how to discover not yet explored markets and how to generate valuable offers that other companies can not provide.
The most ideal choice to do this is to invent your own features in different unobvious sites or by boosting your current product in an absolutely new way that has been unknown before.
An example of standard marketing innovation is when a current product is starting to be exploited in a completely different way and it presents a new valuable offer for another field of business.
Alternatively stated, if there is a big stock of products you want to dispose of, it is a great idea to try to find new approaches to employ and promote them.
Think about starting revisioning your marketing strategy regularly, primarily if there is a feeling that your current marketing activities are not enough efficient to bring about a satisfying outcome.
Context is crucial
Innovation theories of entrepreneurship allow to choose the appropriate approach for your business considering all the context. The context of an industry is very important because only a complex of models allows to achieve success in the most of industries. Certain models suit fitter to certain fields of business and sectors than others.
Businesses hassle while they follow an innovation model that their field of business does not require. For example, company Sears chose to follow the next approach: rely on its brand recognition and the chain of offline stores to hold positions. But when new online players changed the industry of retail, Sears faced with great difficulties.
The next issue is a company’s specific context, which is very important while determining the appropriate innovation approach. You need to consider such crucial factors as how the company’s strategy estimates the importance of novation, what is company’s position towards competitors on the market, what competencies and opportunities distinguish your company from the others. Furthermore, companies from the very same industry can succeed by applying completely different models. However, this model has to be synchronized with a company’s advantages, capacity and strategy.
To understand the context of your enterprise you need to answer some general questions. Do you consider innovation as an expansion boost or as an instrument of defense in your corporate strategy? How stable is your position on the market compared with competitors? How long will you be able to hold your main advantages? What is the value and power of your brand? How strong are your novation facilities in contrast with other players on the market? What is your capacity and desire to invest resources in innovation? Probably the most considerable question, how fast does your industry change and what profit can you get if your corporation leads the transformation?
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