How to innovate to unlock growth Potential

When companies and businesses face challenges, especially that of cash flow, they rush to scale down expenditures. Although this is not wrong, it’s a short-term approach. A long-term mechanism would consider innovation as a long-term avenue. It’s through this that growth potential can be realized. This article is about how to innovate for growth

There is a wrong perception that innovation is all about new products or bringing non-existing ones to existence. It can be an improvement of service, the addition of some features to an existing product, or an upgrade. Innovation should be novel and useful. By going this way, you don’t only grow but also distinguish your business from the competition. And this approach is one of the ingredients for business success.

Having said that, how do you innovate? Well, this is a question whose answer lies heavily in the hands of leaders in different roles within the organization. Here are a few things that can help to bring innovation:

1. It’s important to know that innovation is not an event, it’s a process.

The history of innovation is rich. By looking at like penicillin, for example, which was discovered in 1928, the idea of the universal computer that came in 1936 that was fully adopted in1990s, and many others, there is a sense in which innovation is not done by one person, neither is it a single flash. The small iterations of the basic activities are what sum up to something that can qualify to be innovative.

2. It takes energy

For impactful innovation to take place, it takes great energy from multiple disciplines. The theory of natural selection by Darwin, for example, had to borrow ideas from Thomas Robert Malthus who was an economist and geologist Charles Lyell. Innovations are almost invariably a synthesis of varied domains. It combines the efforts of individuals from varied disciplines and experiences to come to an innovative idea

3. Approach with the right questions.

McKinsey and Company, a globally renowned consulting firm through its forward learning program, highlights a good approach to solving problems. In essence, you consider if the problem is well defined and how well the domain is defined. Once you have the right questions in the right context, then it becomes much easier to walk through the recommendations that can have an innovative effect. This right approach creates an environment for innovation to take place.

4. Embrace open innovations

Times when you come up with a product, it is copied, or it is tampered with by those with bad intentions. When faced with such a situation, instead of fighting, move with them in finding a solution to the matter. This is an express opportunity to come up with an innovative mechanism that neutralizes the situation. By so doing, you expand your capabilities.

5. Change Business model

You remember the announcement of Covid-19 for the first time? A lot changed. Disruptions came in and they are still causing disruptions to date. Ways of doing things changed. I know of a community that used to do burials till late evening. But from the times of Covid-19 to now, they do it in the morning because they got used to the regulations which the government imposed on such activities. Online business is booming all over, a lot of meetings happen virtually, and physical shops have reduced. All these changes are because of innovations that came, and people are trying to adjust their business models to fit the situation.

Often, innovative disruptions may not thrive with old models of business, it requires adjustment to minimize resistance and reduce the risk of failure. This could be seen in Xerox.

Having that in mind, it is important to take actions that lead to how to innovate. Ideally:

1. Develop a meaningful mission
2. Question everything
3. Gain first-hand knowledge
4. Care About your customers
5. Keep your ears and eyes open
6. Use data to support instincts
7. Take small immediate steps
8. Look at the big picture
9. Try to try again
10. Separate into small teams
11. Improve communication between groups
12. Introduce a few constraints
13. Encourage risk
14. Reward risk reduction

Conclusion

When you follow above steps on how to innovate and taking a broader perspective, there is clarity that modern-day innovation is far-reaching. It’s beyond the pitching meetings and big corporate initiatives. What we should know is that we all have something of substance to offer to the world that differs in degree but is better than the giants of the past. We need to believe in ourselves and follow the rules of the game to unlock the potential in our companies, businesses, and our lives.