You may have heard these words – quite frequently – in the last 3 years: Entrepreneurship, Industrial Revolution, Internet of Things, Digital Marketing, Big Data, Machine Science, and more. But do any of them guarantee innovation automatically, or does innovation come through ensuring several enablers?
According to the dictionary, the definition of innovation is to do something out of the ordinary. Business innovation is the development of a number of sectors around which these businesses fall by adding ideas and solutions that help reach a goal or achieve specific goals. Here are a number of sectors in which innovation could be applied:
Innovation in the for-profit model:
Simply put, how your business model can generate money for you and convert your values and resources into services and products that give you a financial injection for the company. Innovation models can be seen in the profit model by asking and looking for several points in your profit model:
- Is the profit model in the company pumping money in a different way than other competitors in the market?
- Is the profit margin in the company greater than the rest of the competitors?
- Is the business model profitable quickly with a low-cost model?
- Is there a wide difference between those who use the offers presented and those who pay for them?
An example of innovation in the for-profit model is Gillette
Innovation in Communication and Relationships:
It is the process of connecting others with each other to create added value, by documenting the company’s values and strengths, and working at the same time to strengthen these aspects with others. Through these questions, we can monitor the model of innovation in relationships:
- Does the company communicate with other companies to form partnerships to develop new services and products that change the market?
- Does the company make exceptional partnerships with companies outside the field?
- Does the company make offers for other players in the market to make an offer?
- Does the company collaborate with its suppliers or customers to develop or test a product or service?
An example of innovation in communication and relationships is Target
Innovation in structuring:
Organizational process of the talents and resources available to you, to help you create a creative environment or raise its capacity in a way that makes it difficult for your competitors to match you. Examples of these organizational processes are building an incentive-driven model that encourages employees to reach certain goals, setting standards that help reduce cost and complexity, and adding training programs to employees.
- Structuring innovation can be recognized through these questions:
- Does the company have a distinct and unusual organizational structure?
- Is the company using its resources differently from other competitors?
- Is the company trying to attract talent by offering specific and rare fields or jobs?
An example of structuring innovation is Whole Foods Market
Innovation in operations:
The methods and methodologies that you built and refined that help you complete your work faster and in high quality. The company uses these methodologies to increase its ability to adapt to changes in the market and increase its profit margin compared to competitors.
You can learn about the innovation model in operations by asking these questions:
- Does the company have the ability to provide products, services, and platforms?
- Is the working capital of the company less than the rest of the competitors in the sector?
- Does the company own a number of patents, technologies, or methodologies that distinguish it from other competitors?
An example of innovation in operations is ZARA
Innovation in product presentation:
It is the ability to design products distinctively by displaying the features and simplifying the way these products or services work, with a focus on maintaining their high quality. These questions define innovation in product presentation:
- Has the company designed a product that has a larger share of the market competitors?
- Does this product have special properties that you would love to have in the customer?
- Is this product or service easier for customers to use compared to other competitors?
- Is the product designed and thoughtful to target a specific segment of customers in the market?
An example of product innovation is OXO Good Grips
Innovation in product systems:
The process of converting products or services into related packages by establishing a common system for them to add more value and facilitate the process of promoting them to customers. These questions help to identify innovation in product systems:
- Does the company manufacture products and services in a way that connects each other in a distinctive way?
- Does the company provide services and products in a way that can be displayed or sold in one form?
- Are other competitors displaying their products and services in a way that completely depends on them to operate?
An example of innovation in product systems is Scion
Innovation in services:
It is an attempt to provide the service in a way that is easier to use, experiment and enjoy while making sure to provide features for these services that help customers finish a job or fix a problem they encountered or overlooked. You can see innovation in services by asking these questions:
- Are customers astonished by the ease with which their problem can be solved through the offered service?
- Does the company offer guarantees with its services and products that make the customer comfortable?
- Have the companies provided additional ways to help customers obtain services more easily and conveniently?
- Are there any communities formed to help, celebrate and enrich customers’ experiences?
An example of innovation in services is Zappos
Innovation in communication channels:
All the methods that you use to deliver and display your products and services to customers in a clear way that helps them make the purchase decision or not from anywhere or anytime, with the lowest cost and easily without any distractions and factors that change the purchase decision. There are a number of questions that indicate whether the company adopts the innovation model in communication channels:
- Does the company use unique channels of communication with customers that are different from what is usual in the sector?
- Do your customers share their enriching experiences in front of others?
- Does the company use different channels in a way
- Are your competitors or market players helping you to sell your services and products indirectly?
An example of innovation in communication channels is Nespresso
Innovation in Brand:
It is the mental image of your services and products that you are trying to communicate to your customers, and create awareness through which they can identify, remember, and prefer them over what your competitors offer. Among the questions that reveal innovation in identity:
- Does the company have a strong identity in its field? Make it stick in the mind of your customers?
- Is the corporate identity used by companies, partners, competitors, clients or suppliers?
- Do your customers see themselves as part of a community?
- Does the company have an extended identity through other side businesses or does it use the identity to reach new markets?
An example of innovation in identity is Virgin
Innovation in customer interaction:
How to help you strengthen your relationship with your customers, using the information and data that you have about them to develop products and services related to their identity or what they represent. Some of the questions that illustrate innovation in interacting with customers:
- Is the company converting something complex and difficult into a product or service that is easy for customers to use or helps them achieve a specific goal?
- Does the company’s offerings have its own identity and have a separate entity in it?
- Do company offerings provide a special identity to their user, or do they explain a specific situation or niche?
- Do customers talk about these products and services as part of their lives?
An example of innovation in interacting with customers is Apple