Webmarked Business Resources

There has always been a perceived view at senior management level that innovation costs money. Equally there is an acceptance that to grow, or even survive in such a competitive environment, your company must innovate. To ignore this fact eliminates a companys’ ability to consistantly deliver above average returns to shareholders over a number of years and may well lead to the replacement of senior management who are torn between cost reduction and growth.The pressure of short term focus on revenues and profits and the lack of time and resources are far too often put forward as the greatest obstacles to increased innovation.

Yet there are ways to increase innovation without seriously affecting costs.

Efficient cost effective innovation comprises radical thought not radical spending.

1) Make all your employees innovators. The higher the percentage of employees who believe they are working on innovation the greater the likelihood of increased innovation.

2) Increase radical innovation to incremental innovation ratio. Most companies tend to work on incremental innovation. Brand extension, product delivery mechanisms fall into this catagory. While this works in the short term, it also works for your competition and so leads to reduced return. New ideas and radical innovation are necessary to maintain growth so simply look for ways to increase the radical innovations to incremental innovation ratio.

3) Out-source innovation. The idea that a “Not-Invented-Here” mentality can be tolerated is crazy. There are 6.5 million patents available online in the US Patent office website and multiple searchable technology sites openly seeking innovators and offering innovations that growth is literally waiting for those companies prepared to embrace co-operation between each other.

4) Increase core knowledge by encouraging more education amongst employees. The more employees are increasing their education the more open their minds are to new opportunities. Learning increases efficiency and increases innovation efforts from all employees, not just the dreamers.

5) Raising a companies commitment to increase innovation amongst staff, customers and suppliers will broaden innovation and deliver results over time.

These five areas do not require millions of dollars. They don’t require more effort and manpower or resources. They require innovation to be led from the top of an organisation to the bottom.

The results by simply seeking employee input and suggestions can lead to significant returns not just in revenues and cost savings, but in an empowered staff who feel included in the positive growth of the organization that they help to innovate and grow.