Growth through innovationIn a longer run, it is absolutely mandatory for a company to also invest in developing new products, services and business models. It is the key to get rid of competitive tendering. I bring companies capabilities to renew their total offering, going beyond core product development, marginal improvements and lowering costs, and enabling clear differentiation in the world of competitive tendering.
It is all too often that innovations just marginally improve current operating model, products or services. Feature competition is the name of the game. With this kind of approach it will be possible to improve company competiveness or cost-effectiveness – but only to some extent. But significant growth can only be achieved through innovations that strengthen differentiation. When a selling company has a differentiated solution, it is easier to secure interest of potential customers and to make the scope and the criteria of purchase process favourable for the seller. A seller is thus able to avoid competitive tendering, resulting to profitable growth. In order to improve differentiation from competition and to avoid competitive tendering, a company needs to rethink certain principles in its innovation activities:
It is to be noted that there is no reason that a firm could not target its innovations to current markets and around current solutions. Besides that, it is usually easier to get a foothold on completely new customer needs and markets through innovation. In both cases utilisation of digitalisation and globalisation in innovation activities will give valuable building blocks for differentiation and avoiding heavy competition. Usually my company projects focus on finding a new direction for company innovation activities, on improving innovation capabilities or on starting a concrete innovation project and securing its results. Based on my experience, it is difficult to achieve desired results without support from the highest management, agile and learning way-of-working and openness to utilise also external innovation. My extensive contact network to companies, research institutes and other players promoting innovation is available here too. Business Finland Innovaatioseteli grants can be used to boost your innovations. You can discuss more with me about your challenges for generating growth through innovation. Please call me, +358 40 559 7010, or send an email, [email protected]. Share this page:
|
Company casesIn principle, company products had demand among all types of customers, from small firms to big ones. The problem was in its business model, it prevented profitable business with SMB companies. By creating a new business model combined with minor product modifications, the company was able to reach customer segments that were earlier not reachable.
--------------------------------------------------------------------- A company was planning an expansion to a new product area that would also open up some new potential customer segments. The costs of the development process were, however, too high compared with the current and reachable markets. By agreeing on R&D cooperation and sharing costs with another company, it was possible to realise the project. The cooperation also brought new sales opportunities for the new products through partner firm´s own channels. ------------------------------------------------------------------- Corporate business was on the growth trajectory and profitability was very good - but in the longer run, plenty of uncertainties were looming. The core businesses did not have enough time or motivation to look for beyond the current. A separate, highly agile innovation unit, safeguarded by the highest management, was established. As a result several new business initiatives, renewal impulses for the core businesses and increased cooperation with other companies were created. More insights and foresights |
