19.01.2023

Implementing innovation in a company. How to invest well in a company?

Key information:

  • Innovation is the implementation of new and original solutions.
  • Innovation is not always an invention of the order of a new business model or an absolutely unique product, it can be an improvement of existing solutions.
  • Innovation can also involve aspects such as organizational culture, research and development activities, communications, marketing or various types of social projects (CSR).
  • Development can be understood as making new products and services available, improving or changing the business model, optimizing any processes or changing communications.
  • The implementation of innovations should always result in an improvement in the efficiency of the organization's operations and, consequently, an increase in profits.
  • The main steps of the innovation implementation process are: defining the goal of innovation implementation, developing an innovation idea and plan, testing the new solutions, fully implementing the innovation, and monitoring the impact of the change made.
  • To make the innovation process effective, it is worthwhile to use proven methods to facilitate it when planning for change.
  • Among the most commonly used methods to support innovation implementation are brainstorming, the six sigma DMAIC method, design thinking and lean canvas.
  • The most common obstacles to implementing innovation include lack of funds, lack of human resources, resistance to change, lack of clear goals and lack of understanding of the concept of innovation.
  • Making a conscious decision to invest in innovation while still in the planning stages of change saves both time and money.
  • The main financing methods include private capital, public capital and public-private capital.

Details below!

In order for your business to generate interest among customers and be profitable, it must stand out in some aspect from its competitors.

Do you think you've come up with an idea that will make it happen? You have to reckon with the fact that originality alone is not enough - in order for the implementation of an innovation to be successful, the right one is crucial market analysis and consumer needs.

What to pay special attention to during this process? You can find out everything in the following article.

What is innovation?

Innovation is the implementation of new and original solutions. It is worth realizing that innovation is not always an invention of the order of a new business model or an absolutely unique product. Sometimes it is simply an improvement of existing solutions that give you a competitive advantage and are building recognition among customers.

One example of innovation that we are still dealing with on a large scale is the digitization of various areas of business and our daily lives. Innovation can also apply to aspects such as organizational culture, research and development activities, communications, marketing or various types of social projects (CSR).

Innovation in the company - how to develop something innovative?

Your company needs to change in order to grow. This development can be understood as making new products and services available, improving or changing the business model, optimizing any processes or changing communications. These are all innovations that are worth preparing for properly.

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    Purpose of innovation and development changes

    The need to implement innovation is present at every stage of business. This is because we live in a world of dynamic changes - concerning both market conditions and customer requirements.

    Before you proceed with any action, define its purpose. Tailor it to the needs of your company, its customers and market, on which it operates.

    Keep in mind that the implementation of innovations should always result in improved efficiency of your organization's operations and, consequently, increased profits.

    How to implement change and innovation in the company - step by step

    The first step is to determine the purpose of implementing the innovation, as we wrote above. This will enable you to assess the potential of the innovation in question, and then measure the effectiveness of the measures taken.

    You also need to take care of the following aspects:

    • Designation of a person responsible for innovation in the organization,
    • conduct the necessary market research,
    • Determine the budget that the innovation will consume,
    • Obtaining financing (if necessary),
    • Choice of innovation management model,
    • Planning a schedule for the implementation of the innovation,
    • Refining internal communications for the innovation implementation process.

    The second step in the innovation process is to carefully develop an idea for innovation. Depending on the type of changes to be made in the company, it is worth taking the appropriate planning strategy. For example, you can develop a completely new product or service that will respond to customer needs and be stood out in the market, but you might as well modify the company's current offerings by improving them.

    The next step is extremely important to make sure that the implementation of changes has the desired effect. It is worth testing the newly invented solution to make sure that further investment of money and time to implement the innovation is worth it.

    The final step is to fully implement the innovation and observe changes, reception and trends in the market to plan and improve the innovation.

    What are the methods of implementing innovation?

    In order to make the innovation process effective, it is worthwhile to use the proven methods outlined below when planning for change.

    Brainstorming

    Brainstorming is one of the most popular techniques for facilitating the creation of new ideas for innovation. There are many different techniques for organizing thoughts during brainstorming sessions. Among those most commonly used in the innovation planning process are the six thinking hats, mind maps, affinity diagram, fishbone diagram, or the 5 why method.

    A brainstorming map template is shown below.

    Six Sigma DMAIC

    DMAIC is a method that facilitates the implementation of process innovation. This technique identifies problems in processes that need improvement and facilitates the implementation of improvement. The DMAIC method consists of the following 5 steps:

    • Define (DEFINE) - defining a problem that requires innovation,
    • Measure (MEASURE) - measuring the size of the problem,
    • Analyze (ANALYSE) - to analyze possible solutions,
    • Correct (IMPROVE) - innovation implementation,
    • Check (CONTROL) - Controlling and monitoring the changes made.

    Go through all the steps of the DMAIC technique and optimize business processes step by step.

    The DMAIC template is shown below.

    Design thinking

    Design thinking, or design thinking, is a systematic approach used to implement innovations, among other things. It is based on 5 stages that allow deep understanding of users' problems and needs and responding to them with appropriate changes.

    The design thinking process is outlined below.

    Lean Canvas

    The Lean Canvas is a one-page sheet that helps break down each business concept into 9 key areas, which is especially useful when introducing new products, services and solutions. This method makes it easier to organize thoughts, understand needs and find solutions.

    The Lean Canvas model is shown below.

    What hinders the implementation of innovation?

    Innovation implementation should always be accompanied by a thorough analysis of all the pros and cons. There are several potential obstacles to implementing innovation. Here are the ones that occur most often:

    • Lack of funds

    Finances are key in innovation - but you can also obtain them through external sources, such as investors.

    • Lack of human resources

    Finding talented change leaders and employees is the key to effective innovation.

    • Resistance to change from those who will be affected by the innovation

    Not everyone likes change - but it is possible to prepare everyone for it properly.

    • Lack of clear objectives

    This can make it difficult to determine how to implement the innovation, and therefore how to manage it. It will also be difficult to determine its effects.

    • Lack of understanding of the concept of innovation

    In practice, this may even make it unworkable.

    How to invest well in innovation?

    In many cases, innovative companies or those with even small innovations benefit from the support of outside investors. Wondering if this is a good option for multiplying your profits?

    Of course, any investment comes with risks, but by innovating, your business can grow. Therefore, when preparing for such a decision, take care:

    • Support from experts who will make appropriate assessments and analyses,
    • finding prospective industries and companies,
    • Using the support of new technologies to facilitate investment,
    • Diversify your capital - don't invest all your funds in one project.

    Making a conscious decision to invest in innovation while still in the planning stages of change saves both time and money.

    How to finance innovation?

    There are various sources of funding for innovation, depending on the source of funds for implementing the changes. The main funding methods include:

    1. Private capital, i.e. funds from private investors,
    2. public capital, i.e. funds belonging to the state budget and European funds,
    3. Public-private capital, that is, funds from both private capital and public capital.

    The right choice of financing is one of the most important strategic decisions a company must make, since the amount of funds raised will determine the extent and manner of innovation implementation.

    Why consult an innovation idea with ConQuest Consulting?

    Innovation drives your business. However, if you invest badly, you can lose a lot - and not just financially. However, you can also significantly increase your confidence in a particular innovation - with the support and experience of a consulting firm.

    ConQuest Consulting experts will analyze the innovation of a solution for you. We will analyze Your competitors and needs of potential customers, which will allow you to verify whether the product will be successful. We will also provide verified information on its profitability and financing options.

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