3 big reasons to innovate in business

I often get business owners suggesting that innovation isn’t required or not important. Why would I need to change they say… I’ve done it this way and it’s always worked. Usually I ask them how much closer are they to their goals as the same time last year. You can imagine the blank stares I see looking back in return.

So Innovation… what does it really mean to business? Well innovation is really just an idea or a concept of doing things differently. Yeah sure you can argue definitions here so allow me a minute or two to explain…

1. Businesses that innovate usually have lower overheads and greater margins.

These cost advantages come about because businesses that innovate typically critically review their cost structures. This means things like looking at the supply chains and understanding where their significant costs are and then reviewing how these dollars can be more wisely spent. Innovative business models utilise the low manufacturing costs of overseas suppliers and are able to negotiate more imaginative deals. Innovative businesses will review their overheads and look for opportunity to reduce costs in creative ways.

2. Businesses that innovate have multiple income streams.

Most innovative businesses look at expanding the number of income streams available to them. If we take a look at Apple you will notice that they have their Mac sales. Apple total revenue has most recently moved into touch devices and sales on their iTunes and App stores. The iTunes store currently accounts for around 10% of their total revenue and growing 100% year-on-year compared with a 3-4% increase in Mac sales.

We are not apple but we can utilise innovation in our business in just the same way. There is a growing trend online about providing additional income streams from webinars and audio books as well as the many creative ideas you could explore to develop new services and products in a new niche.

3. Businesses that Innovate employ better people.

Lets face it. Our business is represented by the people we employ. There has been a ton of research regarding the way individuals perceive innovation. In summary people are more likely to be happy in an environment of innovation and continuous improvement. If your employees are happy, your customers are happy. Not only that but if you have an environment in your innovative business that is friendly and happy you will naturally attract a higher quality employee and this in turn enhances your business.

Not so long ago the IT industry was diversified to such a degree that the average man in the street could easily pigeon hole most IT companies, e.g. Microsoft was an office software corporation, Apple was a consumer electronics corporation and Google was a web services corporation. However in the past few years leading IT companies have homogenised to such a degree that there are few differentiators and one of the main reasons behind it was the Android operating system from Google.

As recently as 2007 the only products that Google produced were internet based, e.g. a search engine, email and an advertising network but the launch of the iPhone from Apple changed all that. Its phenomenal success persuaded Google to develop the Android operating system which was released in 2008 and ultimately used in 2010 in the Nexus One,a smartphone it made in partnership with HTC.

As the Android was based on open source software, it also had to be open source and that led it being adapted by a plethora of electronic manufacturers which further fuelled the growth of smartphone market and has caused a snowball effect. The popularity of the smartphone led to the development of the tablet and has caused a decline in the sale of PC’s. Large IT companies dependent on the PC like Microsoft, Dell and HP have reacted to its decline and all three have developed or are developing smartphones and tablets which have led to the current homogenised state in the IT industry.

Where can the industry go from here, is it the end of IT companies losing their distinctive advantage? Thankfully no. Google which started the trend towards homogenisation has moved on. This month aside from releasing a tablet it developed with Asus called the Nexus 7, it has also released an entertainment hub, the Nexus Q, which streams music and video from its Google Play music store and contains a high-quality amplifier that puts it on a par with the best digital music equipment on the market. This is an interesting development and from my perspective could revolutionise the music entertainment system for the digital age.

Not content with adding a new entertainment system Google has also announced further news relating to its augmented reality project, Google Glass. Google is looking for developers to create apps for its new technology and for $1,500 they can obtain a prototype of the new glasses by early next year and benefit from first to market advantages.

In years to come I expect we will look back at this current homogenised state as a unique occurrence about by the development of the Android open source software as and while it has had its disadvantages it has reenergised the hardware industry and that’s not a bad thing.

Both the marketing and technology industry are getting tougher to crack each year, thus, marketing in more innovative forms are needed by any company who wants to survive in the said fields. Having business partners and having a great products or service are just some of the crucial elements that would enable a business to reach the top. However, more than these things, (no matter how much of an auspicious asset they could be), they wouldn’t be able to reach their potential without the right marketing.

What a Clear Vision Does for your Company

Marketing strategic can’t be compared with technology, moreover, two different fields or attitudes of approaching the client needs. Marketing strategies can be of various forms but the most popular and commonly effective of all, is marketing with the use of technology.

Indeed, many company’s management are taking crucial risks when looking at the numbers. With many of the competitors ready to replace you every day, it is but vital for any company to broaden their array of knowledge in using marketing in conjunction with technology.

Company’s management must first decide their primary goal in the progression of its business. The services/products that are offered must meet the market equilibrium of both the quantity supplied and demanded by your target market. In addition, a businessperson must take crucial consideration on the niche of their products or services. This means that he must be able to well find the target clients and how he could reach them.

A Customer’s Needs and Requirements

Targeted clients are not easy to reach with just a simple kind of marketing, in fact the trend of this generation when it comes to businesses is that “the more complex the marketing is, the more you will reach out to various people.” This is when technology comes into play.

For starters, hiring a marketing expert would make all these possible. With the use of technology, business cannot only take a big step towards reaching out to people but it can also easily keep track of the progresses made. However, though there are many named experts out there that can do this, it is still important to further assess their capabilities because not a lot of people are skilled in marketing methods and technical aspects.

The idea of globalization in general could not have been possible without the proper usage of technology. That is why marketing expertise is not supposed to be measured by how well the methods could be implemented in a certain business but also to the extent of how well these marketing could be ‘technically’ implied in the online world.

Familiarizing with Business Trends and Advantages

Truly, the role of technology should not be taken for granted because it enables you to know how real developments can be made when it comes to combining technology with the current business trends.

Tracking the things that hold back the progress of business could also easily be done if you’re well versed in both technical and marketing fields. Once you’re familiar with the aforementioned industries, creating new and creative methods to keep your business going will be one advantage that you can easily integrate into your business.