The term innovation is at liberty to create things unknown and new. However, it is not restricted simply by the advent of new technologies or product launches. Instead, it is a powerful tool requiring the strategic use of the innovative process to welcome new ideas and nurture them toward sustainable business growth. Innovation, moreover, is a subjective term. For some, innovation might be small additions or improvements, whilst for others, innovation brings a revolutionary change to the industry.
Innovative strategy models offer a predefined structure helping businesses prosper and meet business goals. Researchers, business leaders, and consultants brainstorm and develop the models. Then, they use them to define how the business decision will be evaluated, helping them bring a significant change. An innovation online course can help companies adapt to the innovation strategy models.
Types of innovative strategy models for business growth
1. Incremental innovation
Incremental innovation is the most popular form of innovation. Utilising your existing technology increases the value to the customer within your market. Most companies engage in incremental innovation at some point in time or other. It is also the most crucial pillar behind the longevity of the most recognisable brands.
It is the concept of improving or growing a company by making several minor improvements to existing services, products, processes, and tools. The small changes prioritise the improvement of productivity and performance. It also focuses on the efficiency and user experience of products and services. It can be easily used to save costs whilst differentiating yourself from competitors. It is one of the best tools to improve the market position and create a bigger audience gravitating toward new and improved features.
Goals of incremental innovation
To leverage sales and profits: It focuses deeply on modifying the features and functionality of existing products and services to align the products with the changing trends. In addition, companies can enrol their representatives in a professional innovation course to enhance their understanding of innovation strategy models.
Safeguard the business models: The strategy might fail to present a lucrative opportunity for returns which some other forms of innovation otherwise might do. However, it is quite a low-risk approach which strengthens the existing position.
To welcome new business models: The approach helps deliver gain, stabilises existing business models, and helps you nurture new ideas that correlate with your current business.
2. Product innovation
This includes the development of a new product or an existing one. It can involve adding a new feature to an established product or service or creating a new one altogether. Several factors drive product innovation, including technological advancements, outdated designs, customer requirements, etc. The process initiates with extensive research, which identifies opportunities in all areas whilst incorporating the changes to the product line.
Connect innovation to embrace business success
Expansion
Successful innovation embraces expansion strategy, enabling your business to scale and grow. Explore the different innovative strategy models used by businesses across your sector to gain a clear idea about the best way forward.
Competition
The unique solutions help differentiate the business from the competition and boost your revenue.
Customer retention
Innovation keeps innovating without boring customers. It ensures that what you sell always stays relevant and meets the customers’ needs.
Talent acquisition
Top-tier employees always look for innovation as it fosters learning, action, and opportunities.
Irrespective of the approach, the goal of product innovation is to make it easier for consumers to solve problems in a unique manner.
3. Disruptive innovation
Disruptive innovations connected to products, concepts, and services create new value chains. It enters existing markets and creates completely new ones. Disruptive innovations are less effective when measured using traditional metrics. It, however, has different aspects which are assessed by small market segments. The innovations are beneficial for the company and have the potential to transform noncustomers into customers and meet their needs and requirements. It is often popular among start-ups as an existing market player is bound by the limitations of the business.
Goals of disruptive innovation
Helps the company to expand – It enables businesses to find an opportunity based on changing consumer behaviour. Do not worry, even if the opportunity appears to be shrinking and not expanding. Several characteristics of disruptive business include a small target market; however, with large volume and scale, it might overtake former models.
Improvement of processes – Disruptive innovation also improves your own processes and helps to change, adapt, or improve to offer a better product and service. It also helps to identify new areas for improvement and helps us stay relevant to adapt to the changing industry.
Opens the door to new opportunities – Embracing new ideas and innovation unlocks the doors to new opportunities.
4. Business model innovation
This is a more complex term than product or product innovation. It relates to the process by which the product is brought to the market. It involves the process of changing the value which will be provided to customers and how it will be delivered to generate profit. A retail business model, for instance, includes delivering value to customers by selling products. Business model innovation involves changing the value provided to customers and how the value is delivered to obtain profit. When a business model is successful, it has a lasting impact on the organisation.
Goals of business model innovation
To make a strong impact – Business model innovation has become essential as it can have a substantial impact. It has a better profit margin and service innovations strong enough to disrupt established industries.
To help a company grow – The business model ensures that a company can survive and grow in the long term.
5. Process innovation
The process combines technology, skills, and structure with which the products are produced, and services are offered. Process innovation refers to adopting new or better production methods. It takes place through the use of new technology to save time and money and serve customers better. Such process innovation includes software devices, new technologies, and cultural changes.
Goals of process innovation
Helps businesses grow in the competitive sphere
It allows the company to obtain a better drive in the market and develop products providing the best outcomes. Enrol in an innovation programme to explore different types of innovation strategy models.
Give customer-centric products and services:
It also helps satisfy customers’ needs by offering them customer-centric products and services.
Predicts future results:
Process innovation is vital in predicting the product’s future results for better decisions to improve the service.
Conclusion
Although a few companies want to focus on cutting-edge disruption technology, the most radical innovations result from small improvements. Adopt the most effective innovation strategy models and embrace business growth.
Leave a Comment