The article will discuss the role and functions of innovation in ensuring the sustainable existence and development of the business. Here you will find 5 common rules for successfully implementing innovations in your industry.
Business innovations: how to implement and benefit?
Business lives in conditions of hyper-competition. New offers appear on the market every minute, and consumer preferences change just as often. In a highly competitive environment, businesses seek ways to show the unique side that sets them apart. Some seek to improve existing products and maximize the attraction of customers with a favorable price-quality ratio, while other companies choose to innovate in production.
Innovation is a change in production by improving the technological, technical or organizational process. Its main criteria are manageability and compliance with the organization’s business strategies. Proper implementation of changes will allow them to become not only part of the company but also part of the mentality of the team.
In a broad sense, innovation is scientific discoveries, new technologies, the application of new approaches and techniques, new business models that discover previously hidden value, new markets, or even new user segments.
5 Rules to make it properly
Many business leaders emphasize that a global number of new ideas have been generated today. The problem lies in their choice and rational implementation. And this is possible in a team where there is team spirit, constant exchange of experience and ideas, and employees believe that all changes are for the better.
Without having an idea of what result the introduction of innovations should bring, it isn’t easy to succeed. The systematic introduction of innovative solutions is a very difficult task; therefore, many companies fail to cope with it. Typically, companies try to implement innovative developments separately, but it is almost impossible to get a return on this. So, we have determined 5 basic rules on how to implement innovation in the workplace successfully. They are as follows:
1. The 30% rule
The essence of the rule is that at least 30% of the organization’s total turnover must come from new products. At the same time, you should not try to extend the life path of successful products. Even successful products become obsolete and need to be replaced with innovative solutions, something new.
2. Listen, look and ask
It extends not only to work with information that comes from customers but also to encourage the initiative of employees. If you listen carefully to customers and try to understand their problems, you will know what they demand in an innovative product. Likewise, encouraging the initiative of the organization’s staff creates a special climate that involves the introduction of innovation. An employee may come up with the craziest idea for the manager, but it is always worth listening carefully to the subordinate because it can be original.
3. The 15% rule
A company’s R&D staff can spend 15% of their time developing their initiatives. This rule gives the worker freedom, making it easier for him to generate ideas and test their effectiveness.
4. The rule of quantitative
Goals give employees more freedom, but that doesn’t change the need to set quantitative goals for them: if they are abandoned, it will be more difficult to move forward. The process of bringing new ideas to life in a company should be formalized.
5. Recurrence rule
This rule is that the effectiveness of innovation looks undulating. Therefore, when introducing new work methods, it is recommended to pay attention to the education and training of personnel.