 "Justin Sargent")
Most business leaders would agree that developing the next big thing is a sure-fire way of increasing shareholder value. Innovations allow businesses to reach new consumers and gain relevance in newer markets. Innovative organisations also invariably attract the best talent and supply chains. Yet most businesses struggle to stand out as innovators. In fact, more new products fail than succeed within one year of launch.
Businesses that fail at successful innovations could not focus on what matters the most - the innovation process.
An organisation is only as innovative as its end-to-end innovation process. There are a few strategies to stay on track, as listed below:-
Think bigger, broader
Most companies don't deliver breakthrough innovations because they have a restricted view at the top. Companies evaluate ideas by weighing their viability and financial potential against a primary intended purpose, within the confines of its intended category. Early on in the process, however, is a perfect time to look across categories and define the universe more broadly - extending to adjacent categories.
The real key to innovation is to not restrict ideas to a company's current market.
It unlocks the potential for incremental revenue by catering to the latent needs of the consumer.
Focus on demand
Focusing on supply-side factors like availability and price was a fairly standard approach to innovation during much of the 20th century. This approach worked well for global brands such as Wal-Mart and Coca-Cola. In the new millennium, however, many supply-chain advantages are dissipating.
Without the benefit of a supply-side advantage, organisations must be more focused on demand. A demand-led approach acknowledges that consumers don't buy brands - they pull them into their lives to perform jobs. And because of this, demand-led innovations have a much better chance of addressing consumer needs arising from poorly addressed jobs that other brands have failed to meet. A recent example of demand-led innovation is Dettol's No-Touch hand washing system.
Encourage full-contact innovation
We're in an age of full-contact innovation - one that relies on input from suppliers, customers, channel partners and sales teams. Gone are the days when innovation came alive within four walls. Full-contact innovation involves building an eco-system and then leveraging that community for feedback at every stage. It also means soliciting input from internal stakeholders to strengthen the proposition before development. Instead of a mindset of sequential approvals from different teams, organisations can be better served by bringing together their best thinkers across teams at once to think through all relevant aspects of the innovation. Joint evaluation facilitates a healthy level of tension, but it also ensures that all stakeholders are aligned before the process requires any big investments of time or resources.
When the end is near
Follow-through is one of the most important parts of the innovation process, yet it is one that companies often neglect. Excluding a robust post-launch evaluation is one of the biggest mistakes a company can make. When you bring an innovation to life, it is vital that you pay close attention to what is working and what is not. This key phase of the process is often where most of the learning happens - it is also where most innovations fail.
Execution and sustaining financial support is particularly important in fragmented and highly layered markets like India, where the time horizon for innovations should be three to five years, according to research.
Innovation in the modern world
Despite our years of learning, however, more innovations fail today than succeed.
Re-thinking the innovation process can shift the odds in the company's favour. An organisation should be re-wired to gauge strategic fit, consumer viability and the financial potential of the initiatives.
More importantly, however, it should allow all stakeholders to provide feedback in real time. The modern world calls for a demand-led lens at the beginning of the process and increased rigour to manage the daunting post-launch process.
The author is MD - Consumer, Nielsen India
