Find out how to use innovation as a competitive advantage
The current economic scenario has forced the vast majority of companies to reinvent themselves in a short period, at the risk of ceasing to exist. Businesses that are already used to think of innovation as a competitive advantage can reap good results and strengthen themselves in such a troubled time.
How does your company remain competitive in the face of increasing competition? Is your business model ready to understand and respond to the quick changes that the market requires? Or is the management model more like: “if it ain’t broke, don’t fix it”?
If these questions created more doubts than answers, we will shed a little light for you to understand why innovation is a great ally of competitiveness.
Innovative thinking as part of the company’s culture
Thinking in an innovative and creative way should be part of the company’s culture at all times. We are not saying that you should launch a new product every month; the question here is more related to the business management than necessarily the product.
Even if a product or service is not subject to major changes, the processes involved should always be revisited, as innovation can happen at any stage.
It is necessary to think about the way it is produced, distributed, presented and delivered to the final consumer. A reduction in production costs or an unusual way of getting your product to its destination can generate a significant advantage over the competition.
Planning as a facilitator of innovation
It is not enough to be creative, it is necessary to understand how the internal process, the competition and the consumer market work. More than just encouraging brilliant ideas, the manager needs to have data and a wide knowledge of company numbers in order to ensure that innovations are implemented correctly and achieve the expected results.
With the right information in hand, it is possible to create a strategy that allows innovation with the minimum investment required, so that the return is attainable. The injection of capital in technology and marketing strategies need to be seen as an investment, not an expense. Therefore, they should be part of the cost center.
Innovation as a competitive advantage
In a globalized and dynamic economy, the company must be alert to changes, but also know how to manage everyday aspects in an innovative way, such as creating a high level of relationship with suppliers – comakership -, which can establish a competitive advantage through synchronized supply and assured quality.
Adding new values to the product or service, educating the consumer with this concept, is another way of putting innovation at the service of competitiveness, strengthening the brand’s presence and even expanding its market share.
Follow your market closely and your competition even closer. In order to wisely use innovation as a competitive advantage, it is important to know what consumers are looking for, and it is critical to understand whether your competitor is delivering what they expect.
Both small and radical innovations will keep your company active and present – you just need to plan. We hope this article helped you, and that you like our page on Facebook.