Everyone wants the next best idea. The organization that fails to continually innovate new products and services will not survive long. But not all innovations produce commercial success. A new business idea must offer customers exceptional utility at an attractive price, while delivering a tidy profit.
According to Peter Drucker (Harvard Business Review, 2002), most innovative business ideas emanate from methodical analysis of these seven areas of opportunity:
1. Unexpected Occurrences. Has your company been dealing with obstacles everyday? Do you realize the opportunities that may have been hiding just barely out-of-site? You just might be sitting on the next big thing without even knowing it. When something happens in a situation that was unexpected, entrepreneurs should immediately examine it closely. The market may be giving you the richest of all sources of innovation.
2. Incongruities. When there is a discrepancy between what is and what should be, you have an innovation opportunity.
3. Process Needs. Process needs can open the door to anything and everything. The source of opportunity for innovation comes after looking closely at the processes of the company and identifying clearly the weak spots and the ways they can be improved.
4. Industry and Market. Changes in industry or market structure is ever-changing and it can create great opportunities for innovation in order for organizations to adapt and adjust quickly. Companies should continuously analyze market trends, listen to their customers, suppliers and advisors, and study what their competitors are doing in order to spot opportunities and jump on them.
5. Demographic Changes. Demographic changes can present a host of opportunities for new ventures. A business will need to anticipate demographic developments and bring products and services into line with the changing customer base in the markets they serve.
6. Changes in Perception. Opportunities for innovation can develop when a society’s general assumptions, attitudes, and beliefs change. These perceptions based on moods can be studied, analyzed and exploited for innovative opportunities.
7. New Knowledge. A firm that wants to survive in its market has to be flexible and able to adapt to the rapidly changing environment. We are living in a world that experiences continuous change and those who are not able to keep up will disappear.
Innovation is vital to a company’s success in today’s highly competitive business environment, especially as customers become more demanding and savvy.
Entrepreneurs need an edge to survive and stand out. Innovation can provide that edge.
When organizations prune their offerings to better fit customers’ needs, they do more than cut costs. They often boost sales, as well.
If you want to see the benefits of investing in innovation and product development, feel free to contact us.
About Mike Hill
An experienced General Manager with a demonstrated history of working in the manufacturing and consumer services industry. Strong engineering and operations professional skilled in Budgeting, Manufacturing, Continuous Improvement, Product Development and Engineering.
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