Today every company says that it values novation and tries to endorse the spirit of innovation in its team. But the reality is that very few companies know how to foster innovation in their enterprises and get profit from it using the innovation theory of entrepreneurship. This article aims 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. It would be best if you considered it an interdisciplinary area of study with a wide range of various patterns, structures, and theories.
We are firmly convinced that a basic understanding of the general ones helps comprehend this complex issue and will be employed as a guide when evaluating innovation and analyzing everything related to creation.
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, entrepreneurial development and economic development. From MVP to a complex ecosystem – devotion to a company innovation strategy provides limitless development opportunities.
Innovation is crucial for success basing on the previous 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 such a wide range of innovation theories of entrepreneurship, how to find the one that fits your company? And even more critical, which corporate novation approach will boost your company’s 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 give us answers to this question. Now we want to consider Best Five Innovation Models:
1. Startup&Corporation Collaboration
In many cases, partnerships between startups and corporations result in significant 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 implementing new techniques that rapidly shape the business process. Thus, companies accelerate the innovation period and get critical 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
To satisfy their requirements and goals, some corporations maintain their startup accelerators. The main advantage for such enterprises is that they can collaborate with startups that fit their needs strictly. The previous research shows that more than half of 165 incubator programs in Great Britain are backed or subsidized by corporations compared 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 are another approach many companies resort to. The aims of such teams include investigating, spreading and organizing corporate innovation operations following 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 may be pretty insubstantial depending on the lifecycle and matureness of the company.
You have to hold a meeting with company stakeholders to understand if this model fits 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 will this affect your regular operations? Consider your company’s internal framework, strategy, funding, predictions and other essential issues carefully.
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 what field you conduct business in, the foremost thing that differentiates 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 help you develop a novelty product, but it won’t design it for you. If you want to see accurate results in the predictable future, it is better to choose another innovation model.
5. Acquisition of startup
In many cases, purchasing is the simplest way to stimulate corporate innovation. According to this model, companies join other businesses. As a rule, mergers are conducted between big corporations and small companies due to many causes. Consider the following benefits of this novation model to determine which of them fit 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 practical and working corporate innovation models will serve your company’s novation performance. Like any other crucial business solution, it is crucial to consider scrupulously and choose an innovation model for your enterprise and match it with your current business structure, patterns, operations, and more. Be ready that the right choice of innovative corporate model will require specific spending of resources, time, energy and curiosity.
Source of the innovation
Usually, innovation refers to one of the following groups 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 to doing business. It is helpful to dispute traditional views to deliver unconventional and inventive ideas, especially in case of a lack of creativity.
- Establish the conformity of a business model
Your renewed business model should conform with your strategic view of your company.
- Make a prototype, and don’t put it off to check it.
Make new attempts considering the previous data and keeping in mind earlier failures and successes.
A widespread misinterpretation of Achievement Theory is that those unaffordable and expensive technologies usually back achievement in innovation.
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 distinct advantage and rising revenues, technology is the main contributor in most 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 advance this idea to a workable unit.
New technology is 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 significant advantage of tech novation is that it is not necessary to start from the very beginning. In many cases, a tech feature designed to be used for one purpose unexpectedly starts to be used in entirely different situations. If you want to do the same, start noticing brand-new technologies surrounding 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 pretty 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 choosing appropriate new channels and techniques to advertise your product, but about how to discover not yet explored markets and generate valuable offers that other companies can not provide.
The ideal choice is to invent your features in different unobvious sites or by boosting your current product in a new way that has been unknown before.
An example of standard marketing innovation is when a current product is being exploited in a completely different way and presents a new valuable offer for another field of business.
Alternatively, if you want to dispose of an extensive stock of products, it is a great idea to find new approaches to employ and promote them.
Think about starting revisioning your marketing strategy regularly, primarily if you feel that your current marketing activities are not efficient enough to bring about a satisfying outcome.
Context is crucial
Innovation theories of entrepreneurship allow choosing the appropriate approach for your business considering all the contexts. The industry context is vital because only a complex of models allows achieving success in most industries. Specific 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 following 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 great difficulties.
The next issue is a company’s specific context, vital in determining the appropriate innovation approach. It would help if you considered such crucial factors as how the company’s strategy estimates the importance of novation, its 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 defence 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?