Issue link: https://maltatoday.uberflip.com/i/1044434
maltatoday | SUNDAY • 28 OCTOBER 2018 BUSINESS & INNOVATION M4 THE successful exploitation of new ideas is crucial to a busi- ness if the latter is to improve its processes, bring new and improved products and ser- vices to market, increase its efficiency and improve profit- ability. As modern technology makes giant steps and the internet continues to expand and reach out to available customers, the market world is indeed becoming a village and mar- ketplaces are becoming highly competitive. On such a platform it is im- portant to be clear about the difference between invention and innovation where inven- tion stands for a new idea while innovation is the commercial application and successful ex- ploitation of that idea. In this view innovation is akin to in- troducing something new into the business, perhaps by im- proving or replacing business processes to increase efficien- cy and productivity or by de- veloping entirely new and im- proved products and services to meet rapidly changing cus- tomer or consumer demands or needs. One can also use innovation to add value to existing prod- ucts or services and in so doing differentiate the business from its competitors and increase the perceived value to the cus- tomers. Innovation can mean a single major breakthrough through a new product or ser- vice but it can also involve a series of small changes. The main factor which must feature in innovation is the creative process which may include ideas that come from inside the business or even others from outside the busi- ness itself, perhaps through suggestions by customers and even by observing other com- petitors. The success or other- wise of such innovative ideas comes from the ability to fil- ter the suggestions and apply them to the respective busi- ness in question. As a result of such innova- tion, the business should pos- sibly reduce costs, become more competitive and im- prove productivity. Obviously, innovation must not be regarded in isola- tion and any serious business which intends to improve and grow must study any innova- tive ideas within the frame- work of the market, including modern trends, available lat- est technologies, consumer demands and the economies involved. One can identify opportuni- ties for innovation by adapting the product or service to the way the marketplace is chang- ing. For example, if you're a specialist hamburger manu- facturer, you might consider lowering the fat content in your burgers to appeal to the ever-increasing health-con- scious consumers. You could also develop your business by identifying a com- pletely new product. For ex- ample, you could start produc- ing vegetarian as well as meat burgers and in this way appeal to more potential consumers. You could innovate by intro- ducing new technology, tech- niques or working practices – perhaps using better processes to give a more consistent qual- ity of product. If research shows people have less time to go to the stores, you could overhaul your distribution processes, offering customers a home- delivery service, possibly tied in with online and telephone ordering. If your main competitor's products have a reputation for being cheap and cheerful, rather than trying to undercut them on price you could inno- vate by revamping your mar- keting to emphasise the qual- ity of your merchandise – and consider charging a premium for them. Some innovative ideas may just come to you out of the blue. However, you should ideally have innovation as part of your business strategy and a strategic vision of how you want your business to develop – if you dedicate your time to monitoring trends in your business sector, you can then focus your innovative efforts on the most important areas. The very positive aspect of innovation is that it will not only improve the chances of a business survival, but also helps it to thrive and drive in- creased profits. There are lots of practical ways of assessing whether innovative ideas have profit potential: You can find out who your competitors are and where they operate. Use the Internet and advertising sources such as the Yellow Pages to find out about their products, prices and op- erating culture. This can give you an overview of their selling points, as well as any areas you might be able to exploit. For example, if the compe- tition is focused on value for money, you might want to emphasise the quality of your product or service. This in- volves a study of the market and industry trends and an awareness of the climate in which the business is operating will help you to plan. You can find a lot of informa- tion about your industry on the Internet. Business and trade magazines will also feature use- ful articles. Meanwhile, however, it is im- perative that you build a rela- tionship with your customers It's not enough simply to know who your customer base is. You need to communicate effectively with them as well. And possibly communicate with other potential customers. Communication involves not only listening to their needs but also actively observing their be- haviour around current prod- ucts and services and generat- ing ideas on how you can make improvements. Involve your suppliers and other business partners. Pool- ing resources with suppliers or other business partners will help to produce and develop creative ideas. Potential partnerships can also be developed through busi- ness networking opportunities. Next, one can consider what taking a particular innova- tive step could mean for the business itself. Ask yourself what impact it will have on the business processes and practices, what extra training the staff may require, what ex- tra resources you may need, how you'll finance the work, whether you'll be creating any intellectual property that will need protecting Finally, one should include vision in any business plan. this may entail putting down your goals, both long and short term and detailing how you intend to achieve them, linking goals to financial tar- gets, and reviewing the plans regularly. Suppliers, business partners and business network con- tacts can all make valuable contributions to the creative process, as well as providing support and encouragement. The employees of the busi- ness are also a vital asset in generating innovative ideas. To get the most from them, you need to create an innova- tive environment and encour- age creative thinking. In order to promote innova- tion in a business it is impor- tant that one Makes sure that the right processes and events are in place to capture ideas. For example, you could set up suggestion boxes around the workplace or hold regular workshops or occasional com- pany away days to brainstorm ideas. Create a supportive atmos- phere in which people feel free to express their ideas without the risk of criticism or ridi- cule. Encourage risk taking and experimentation – don't pe- nalise people who try new ideas that fail, promote open- ness between individuals and teams. Good ideas and knowl- edge in one part of your busi- ness should be shared with others. Teamwork, newsletters and intranets can all help your people share information and encourage innovation. Stress that people at all levels of the business share respon- sibility for innovation, so eve- rybody feels involved in taking the business forward. The fewer the layers of man- agement or decision making in your organisation, the more people feel their ideas matter. Reward innovation and cel- ebrate success. Appropriate incentives can play a signifi- cant role in encouraging staff to think creatively. Look for imagination and creativity when recruiting new employees. After all innovative thinkers aren't always those with the most impressive list of qualifications but individuals who can think outside the box. Innovation for business development and growth