Innovation is the gift that keeps on giving

One of the most common questions I receive from businesses and entrepreneurs is “how do I plan or structure my business so that I can deliver consistent growth each year and eliminate drastic swings in revenue”.

Imagine if, every year, you could count on 10-20% of incremental revenue growth.  By any standard, that would be a significant contribution to a business.

One highly effective solution, to drive incrementality and growth, is to create a consistent pipeline of innovation.  It pays unlimited dividends for your business.  And it differentiates you from your competition.

Innovation is defined as the act or process of introducing something new.  It is the act of creating a new idea or method.  Or it could be enhancing something that already exists, making it more effective, less expensive, operate faster, reduce complexity, expand its reach, or change its delivery system to get to the masses.

Innovation can be just one of those things.  Or innovation can be all of those things combined together for maximum business impact.  It can fulfill an existing need.  Innovation can also target an unarticulated need that is on the horizon.  It is creating tangible value that others are willing to pay for, because the benefit(s) outweigh the costs.

Products are the most commonly used example of innovation.  But innovation comes in many types and forms.

You can incorporate one, a combination, or all of the options below to innovate your business.

• Innovate the business model or profit model you use to make money
• Leverage collaborations or new partnerships to create value and differentiate
• Develop a proprietary process or framework
• Establish superior service
• Build a breakthrough customer engagement process
• Make your offerings available to new customers and new users
• Make your offerings available through new vehicles and distribution channels
• Expand your brand into new categories
• Create a completely new product
• Improve an existing product
• Create a system of products in related categories that can be linked together for greater impact and revenue potential

Think of a product, service, process, or method of delivery that you experienced.  One that made your life easier, saved time, or met a crucial need.  Maybe it’s an item that makes a mundane task quicker and easier to complete.  It could be a cutting-edge solution that eliminates the need for multiple products.  With those multiple products being replaced with an all-in-one solution. It could be a streaming service that allows you to make choices in the comfort of your home.  The streaming service provides a convenience benefit and expands access.  It could be accessing an existing product or service directly, whenever and wherever you need it.  It could be a ground breaking process that eliminates guesswork, the potential for errors, and improves the odds of a successful outcome every time.

Regardless of the scenario, there was value created.  And that additional value strengthened your loyalty to the brand, service, or company.

Listed below is a list of potential innovation options you could apply in your business.

• Business or profit model
• Product
• System
• Program
• Service
• Customer engagement
• Content
• Digital Product
• Process
• Signature framework
• Solution
• Tool
• Software
• Delivery system
• Distribution channel
• Structure
• New partnership
• Sales process
• Sales funnel
• Marketing

Your Innovation Experience

Now think about your business. When was the last time you truly innovated some aspect of your business?  Maybe it was creating a new product, program, or offer.  Or it could have been creating a breakthrough client engagement process that was seamless, automated, and 100% digitally based.  Or was it changing the delivery system of your product, service, or content?  Or perhaps it was shifting the marketing strategy for your company.  Maybe you launched a new business model that enabled you to reach a higher number of customers?

The type of innovation is not important.  Any one of those examples can work for your business.  Because you are creating value.  You are establishing differentiation.  You are creating a window of opportunity to accelerate results.  You are widening the gap between you and your competition.

Your Innovation Challenge

• If you were able to integrate innovation into your business planning and goals, what would be the payout?
• What could you do with an incremental 10-20% of revenue growth?
• What would you be able to accomplish?
• What investments could you make?
• What could you stop doing
• What additional resourcing and staff would you be able to hire?
• What work processes could you automate?
• What breakthrough client/customer experiences could you create?
• Which new products and programs could you launch?
• How many more customers could you reach?
• In which strategic partnerships would you invest to increase your impact and revenue?

Based on your responses to these questions, determine at least 2-3 types of innovation that would be beneficial to your business and accelerate revenue growth. Two factors you want to include in your decision are your customer’s unmet needs and prioritizing your opportunities. Then decide which forms the innovation will take. Develop your innovation strategy for at least the next 12 months. And incorporate your innovation strategy into your business plan.

Next, launch and leverage!

That means once you launch your innovation, keep it at the forefront of everything you do.  And it will continue to pay dividends. Develop a 12 month plan dedicated to marketing the innovation, communicating the benefits to prospective customers, and utilizing it fully across your entire business portfolio.

The key is to launch and leverage the innovation, not launch and leave it!  Adult learning principles state that you need to tell people something at least three times for them to remember or recall it.  In reality, I believe this is a conservative estimate.  You need to ensure you are constantly in front of your customers and promoting the value of your innovation, especially in the first year.

Innovation…

• Establishes a continuous stream of value
• Accelerates top-line revenue growth
• Improves profitability
• Increases your share of voice
• Differentiates you in your industry
• Provides a competitive advantage.

Innovation is the gift that keeps on giving.

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