My first job after graduating from college was working as an Electrical Engineer for a small start-up company in Ann Arbor, Michigan. At that time, the company had a single scientist (Don) who was responsible for the company’s innovations. He was very bright and an expert in his field of imaging technology. Since Don was the only person expected to create innovative ideas, the rest of us never really thought about innovation. And, the company only discussed innovation with respect to Don’s work in creating new high-tech inventions. In hindsight, I see that this was a serious problem for the company.
Yes, innovation is critical for companies that are developing new, cutting-edge technologies. However, innovative ideas cover much more than just the latest technology. Since my first job, I have worked with hundreds of companies and entrepreneurs who have a broad view of innovation that can benefit any type of business (not just high-tech companies).
Here are seven of my favorite benefits to help you expand your business by leveraging innovative ideas:
- Increase Revenue – Innovations increase company revenue by creating new products or services that attract new customers and cause your current customers to purchase more from you. Innovative product features that become a “must have” feature increase sales.
- Reduce Expenses – Innovating internal procedures can significantly reduce a company’s everyday operating expenses. Innovative manufacturing procedures will reduce manufacturing expenses, which strengthens your business.
- Provide A Competitive Edge – New products (and new features for existing products) distinguish your company’s products from others in the marketplace, which can increase sales. Small enhancements to your product or service can dramatically increase sales.
- Position Your Business as an “Innovator” in the Marketplace – News articles, press releases and similar information discussing your company’s innovations can attract customers to your products. Innovative businesses often have a customer base full of raving fans who promote the company’s products by word-of-mouth.
- Attract and Retain Top Employees and Contractors – Many people want to work for innovative companies. Employees enjoy being part of an innovative environment, rather than an old-fashioned “boring” company. Attracting a large pool of people that want to work for your company lets you pick the most talented individuals for open positions.
- Create An “Innovation Culture” – Teaching employees about innovation and encouraging innovative thinking produces an innovation culture in your business. This “innovation habit” is contagious and produces a steady stream of creative ideas from all departments in the company.
- Attract Investors/Funding – Many investors and other funding sources look favorably upon innovative companies. Innovations provide a path to new products and increased revenue, which improves the investor’s profits and reduces their perception of risk.
My previous employer had a very narrow view of innovation: develop new technology-based inventions. But, that business could have done so much more to cultivate and leverage innovative ideas from everyone in the company.
A well-designed Innovation Strategy can provide many benefits to your business. The list above identifies a few of my favorite innovation benefits. Future blog posts will discuss each of these seven benefits in more detail – stay tuned!
Which of these benefits would provide the biggest impact in your business right now? Please share your answer below.
My first job after graduating from college was working as an Electrical Engineer for a small start-up company in Ann Arbor, Michigan. At that time, the company had a single scientist (Don) who was responsible for the company’s innovations. He was very bright and an expert in his field of imaging technology. Since Don was the only person expected to create innovative ideas, the rest of us never really thought about innovation. And, the company only discussed innovation with respect to Don’s work in creating new high-tech inventions. In hindsight, I see that this was a serious problem for the company.