Instead of solving emerging real-world consumer problems , many innovation strategies are designed to focus on delivering efficiency , scalability , and profitability . And while the overarching goal is to develop true breakthrough innovations , “ the next big thing ”, most innovations result in minor improvements to existing products . an already existing product , or optimizing features of a product . Innovation however goes beyond the product .
INNOVATION
Businesses Should Embrace Data-Driven Innovations To Appeal To The Market
By Edward Ihaji
The fast rate at which new innovations are being churned out every day has intensified the competitiveness of the business environment to unprecedented levels .
Kenya occupies an enviable place in Africa as a leading innovations hub . The 2019 Global Innovation Index ( GII ) by the World Intellectual Property Organisation ( WIPO ) ranked her as the most innovative country in the Sub-Saharan Africa . It is ranked 77th behind South Africa ( 68 ) and followed by Mauritius ( 93 ), globally .
Sectors that are witnessing a flurry of new innovations include agriculture , manufacturing , financial , transport and logistics , and mobile telecommunications . These innovations are being driven by the digital revolution that is sweeping across as well as the ever-changing needs of consumers .
For businesses innovation is a must . If you want to remain relevant and profitable you need to make innovation a key pillar of your business strategy . Businesses that are not re-inventing themselves are falling and leaving the way for those that are leading through innovations .
Companies often rely on business innovation to help reduce expenditures , develop new processes and increase their appeal to consumers .
By creating a new product or service , redesigning a product or service by adding features , discovering a new material or process or creating better systems for business organization and function , a business can increase its market share and customer base .
Innovation is an effective strategy for a business to differentiate itself from its competitors , thereby creating a more niche market for its products and services . Its end goal is always to boost revenues and earn the company industry accolades .
Product innovation is the most popular and assumed to sum up business innovation . It involves either of the following three cases - developing a new product , enhancing
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Instead of solving emerging real-world consumer problems , many innovation strategies are designed to focus on delivering efficiency , scalability , and profitability . And while the overarching goal is to develop true breakthrough innovations , “ the next big thing ”, most innovations result in minor improvements to existing products . an already existing product , or optimizing features of a product . Innovation however goes beyond the product .
We have process innovation which considers a combination of resources , technologies , and skills being consumed by an organization to generate a product or service of value . Its results may not be openly evident to customers , but it leads to long-term benefits in terms of faster time to market , reduced costs , minimal wastage , and enhanced productivity and efficiency .
The fast-changing consumer landscape that is being driven by advancement in digital technologies and global challenges such as the Covid-19 pandemic and climate change has also given rise to various innovations on business models . These issues have heralded new challenges and unlocked new opportunities , making it imperative for organizations to come up new business models to confront present realities .
While in the past decades any company that wanted to innovate would simply go around and ask customers what they wanted and implement it , that era is now long done and gone .
In today ’ s world we are faced with situations where more than 72 percent of product launches and innovations fail to get traction in the market , hence fail to meet their financial targets . In Kenya , a study conducted by researchers from Karatina University and the Cooperatives University of Kenya involving 101 manufacturing firms revealed that some businesses had as many as 13 new products but ended up patenting only five . The study was published in 2020 in the International Journal of Innovation Studies .
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