Encouraging Innovation: Key to success for Any Company

Encouraging Innovation: Key to success for Any Company



For any company to thrive in the long run—investing and encouraging new and innovative ideas hold the key.

Stereo-type Companies: Investing in innovation could be your best-ever business idea

Nowadays we come across so many companies which don’t even bother to have any development or incubation unit. This is just horrible for its own sustenance over a long period of time.

They are of the ‘official’ opinion that they don’t have the money or manpower to spend lavishly on ‘innovation and development.’ They would argue (I believe not being true to themselves also!) we don’t have enough profits; set-up cost is too high a risk, no guarantee return of investment and so on. Rather, they would just stick to their old ‘doldrums’ to carry on with an average profit. What they don’t understand is; few years down the line—they will find themselves losing out on competition to their peers; who could just have invented or perfected a new business idea or disruptive product.

Invest in innovation and creativity: It’s like insurance cover

Almost all of us nowadays have medical insurance cover. Why? The reason is simple; when you suffer from acute illness, have an accident or hospitalized —it’s the best ‘shock absorber ‘ for your pocket. For these, we pay out the premiums each year without any visible ‘return’; hoping to have made the best use of the coverage in case of illness, operation or mere hospitalization. In emergency this comes as Gods’ blessings, the insurance company pays up your bills.

The same logic can well be applied for companies apprehensive to invest in new innovations and ideas. Every firm—irrespective of their size or profit should invest in innovation. Well, you never know what’s coming—may be an employee of yours gets you an IP patent, which allowed you to gain a great competitive advantage against rivals. Innovation activities also represent the company goodwill and it’s proposition to the outside world; it shapes people’s perception about the company. Or maybe, you may increase the productivity of your firm by empowering internal resources to conduct innovation exercise. Most importantly, it fulfills the increasing need of influence consumers have on the products and services their paying for. Summing up; only time can tell how much your gains you can make by investing in a new product or a new business model.

 

Committing to a new business idea: How much would be my return!

While going with a new business model, an idea or a product—most of the companies are apprehensive about the return of money they would have. Well, it’s certainly not going to earn you profits—but there are indeed many indirect benefits.

Encouraging and making use of newer technologies and ideas elevates the spirit of the work-force. In an atmosphere where a new idea is appreciated and supported, every other employee would presumably come forward to go the extra mile. Morale of each would be high, and all of them would try to excel their performance by contributing to new ideas.

Also, the consumers have ever-changing taste. Whenever they find out a ‘latest’ product, they won’t think twice to dump off the (your) products. So, as an entrepreneur your primary target should be going before the market. Offer the customer a new, improved product even before he is looking for an alternative. It’s your call to create the business, venture into new markets—and for these new ideas and innovations could be your best tools.

There’s an old cliché saying ‘with no input comes zero output.’ Today the workforce craves for not only good salary, but recognition also.  To have your employees feel satisfied with their current job—empowering, encouraging new ideas and thoughts could be best way to pave path for a dynamic work environment.

Now, the call is yours – CEO.