What Does Business Innovation Mean, and Why is it Important?

September 30, 2022
What, specifically, is business innovation? Companies must innovate to stay relevant and not be left behind as technological advances disrupt all industries. Innovative companies are not only rewarded for being prepared for the future but also for having top talent and increased consumer demand.

What does business innovation include?

Companies implement new processes, concepts, services, or products to boost the bottom line. Inventing new and improved products or services (which increases revenue), making an existing process more efficient, or solving a current business issue (both of which reduce costs and save time) are just a few examples of business innovation. Brainstorming, design thinking, or operating an innovation lab can boost the company’s innovation. Increased revenue is the key aspect of innovation.

It’s not everything that counts as business innovation.

In recent years, “innovation” has become such a hyped concept that its essence has been obscured. Some refer to it as a generic buzzword for implementing the latest technology or making alterations for the sake of alteration. However, “innovation” refers exclusively to alterations to an organization’s core business that lead to growth.

Why is business innovation important?

The benefits of innovation are fourfold:

A business can avoid being caught flat-footed if it stays abreast of the latest technological developments.

An organization that takes stock of where the market is going in Uganda, thanks to potential disruptors or changing consumer needs, is one that innovates in a manner that entices its employees to be entrepreneurial. That information is utilized to make strategic shifts, resulting in products or services similar to those offered by new start-ups, the purchase of them from rivals in the field, or an alliance with them (the “buy, build, partner” approach, for example).

Increased efficiency is the key to success.

Businesses can innovate by reducing costs, reducing the time required to finish processes, and increasing sustainability. Those alterations save time and allow an organization to adapt to industry shifts quickly, thereby cushioning against risk and volatility.

Talent attraction and retention are essential.

Employees—particularly millennials and Gen Z— want to work for mission-driven, fast-moving companies that they believe have a bright future more than ever. Although the number of jobs available in Uganda and the number of job seekers do not match, attracting top talent from this competitive pool should be a priority which is why standing out as a business matters.

How a brand is perceived is of importance.

Consumers are more likely to purchase from firms they consider to be innovative and socially responsible. This is especially the younger generation who want to support businesses that align with their missions and passions.

 

Types of business innovation.

There are many instances of business innovation, including creating a new product or service. Business innovation can involve creating a new product or service, but it does not have to.

Innovation in products

Creating a new product that’s related to a company’s core business. For example, Nigerian start-up, Flutterwave recently incorporated Google Pay in its service, which was highly in demand. Its business model allows customers to pay businesses with mobile money without leaving the business’ website. This changed the world of online shopping in Uganda. So many companies use this service to provide their products and services. Product innovation will make your business widely recognized for quality.

Process innovation

As discussed above, Flutterwave changed how people pay online in Africa. Companies in Uganda, such as Tubayo are changing how people book accommodation and experiences for the better, challenging dominant global conglomerates such as Airbnb.

Innovation in business models

MTN, for example, releases mobile devices annually to increase its bottom line. If consumers use their sim cards, why not use their phones and get major discounts?

Innovation in delivery

Through these business innovations, companies can become more efficient, forward-thinking, and hopefully more profitable. There are practical steps companies can take to jump-start innovation.

Corporate innovation offices and innovation labs may be among the areas that need updating to encourage innovation at work. Programs at the Innovation Village in Uganda are working on achieving this mission. Alternatively, businesses may employ internal innovation programmes to tap into their employees’ creative energy and enable the best ideas to emerge and be implemented. Learn more about how to drive innovation in the workplace.

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