3 Key signs your company need to start corporate innovation
How to know if you need to pull up your corporate innovation socks, stat.
The Board of Innovation, a global consulting firm, estimates that there are about 70 000 books on innovation available for purchase right now. Innovation has become one of the most buzzworthy concepts over the last few years. It’s become so loosely thrown around that it almost feels unhinged from its meaning.
There is so much information out there which makes understanding exactly what innovation is and what it means for you and your business a trying task. Although the term may seem cliché, the fact is, it’s not going anywhere. In 2019, 55% of company leaders participating in PWC’s 22nd Annual Global CEO Survey claimed, “We are not able to innovate effectively”, which placed this skill gap on top of the CEO’s agenda.
Here’s how to know if you need to pull up your corporate innovation socks, stat.
What is corporate innovation?
Before we dive in, let’s first unpack what corporate innovation is. Corporate innovation refers to the intentional fostering of out-of-the-box thinking within corporate environments. We’ve heard of companies hosting hackathons and idea workshops to running innovation labs and accelerator programmes but what is the main purpose of corporate innovation?
According to the Harvard Business Review, corporate innovation can yield a stream of internal improvements; new products and services; experiments with different business models; and investments in fledgeling companies that connect with new customer segments.
So, what are the signs you need to start innovating?
1. You can’t keep up with the pace of technology
Did you know, this year, over half of the world’s population is expected to have access to the internet for the first time? Technological growth has become exponential in the last few years. The ‘digital age’ has led to accelerated innovation at a faster pace than ever before. Today, new technologies have drastically and fundamentally changed how people, the economy and businesses operate on a daily basis.
With the pace of tech comes a new set of demands, expectations, values and needs for products and services to keep up. If you feel like you are falling behind when it comes to tech in your workplace, digital marketing, or, most importantly, if younger generations are not interested or do not understand your product, then you seriously need to consider switching things up. Did you know Gen Zers now make up 40% of all customers worldwide? They are not a market to ignore.
2. Startups are gaining in on you
If you have a winning product that’s doing well on the market, it won’t be long before you have competitors trying to get their piece of the pie. If you’re finding that startups are replicating your business model, or worse, delivering your product or service in a more efficient and cost-effective manner, then the need to evolve is more important than ever.
However, that being said, one way that corporations spur innovation is by working with startups. There is a shifting corporate culture to expand in-house solutions to a more open and collaborative environment by actually partnering with small, high-growth companies. According to GCV Analytics, a company that tracks corporate venturing deals, the number of corporate investments in startups has nearly tripled from 980 in 2013 to 2,795 in 2018, and their value has risen from $19 (R331) to $180 billion (R3 trillion).
3. You aren’t evolving or adapting
There is no doubt that the world is becoming a more competitive place. The phrase “adapt to survive” has never been more apt. Chances are if you’re a successful business and you haven’t been monitoring threats and opportunities within your field, they are competitors looking for ways to cash in on your idea, product or service with possibly a few extra trimmings to one-up you. Or if this has already happened, meaning your product is no longer unique, and there are plenty of look-alikes available; there is no time to waste.
Companies that fail to evolve from their original business model, can quickly find themselves losing market share and becoming just another provider in a myriad of similar companies.
If you recognise any of these scenarios within your company, it’s time to act quickly but also smartly. Ideas are cheap, execution is what matters. For many, this last part is the hardest. Innovation is a muscle that gets stronger.
Be mindful when innovating and make good use of the resources at your disposal to kickstart your very own innovation projects, for example, research & development, corporate innovation teams, corporate innovation labs, and external corporate venture builders. Do not fall behind. Innovative companies with superior solutions in today’s digital age will see growth for years to come.
Are you looking to start innovating? The Delta is a venture development company that co-creates businesses and products with leading corporations and entrepreneurs. Get in touch with us here.
