| Innovation
is Your Company's Lifeblood By Craig A.
Steffen
Innovate
or die. In the “good old days”
businesses could carve out a little product or service niche in their chosen market and
plug along for decades of success. In
today’s world of meteoric change, no business can afford to rest on past victories. Someone lurks in the shadows with a better idea
coveting your marketshare.
Depending
upon your generation, you’ll remember reel-to-reel tape recorders, eight-tracks or
cassettes. Each of these innovations lasted
at least a generation. That time is gone.
Today
we all know the feeling of spending thousands of dollars on computer equipment that is
obsolete in less than a year. Loading new
software typically includes downloading upgrades that same day. Many of the “rising star” companies of
the mid 1990s don’t even exist today. If
your company isn’t continuously working to provide your customer with “more and
better,” you might already be yesterday’s news.
Many
successful companies now begin the process of replacing their own products while new
products are still on the drawing board. Here
are some questions you should ask even as you are about to launch a new product or
service.
§
Who,
among your current competitors, is likely to be most affected by your launch?
§
What
is the next logical progression that will make your product even better?
§
When
could you, or your competitor, be prepared to introduce the “next generation?”
§
Where
else could competition come from?
§
Why
not replace your own product – before anyone else has a chance?
§
How
long will it be before your customers clamor for something more or better?
Your
future depends on imagining how your current product/service offering can be made obsolete
– and then implementing those ideas first. Think
beyond incremental improvements and into completely new ways to WOW your customers. While one encyclopedia company was re-training its
door-to-door sales force, another was making their product available on-line.
Don’t
fall into the trap of thinking that innovation only applies to technology companies. ALL businesses must innovate. Service companies who don’t impress their
customers by improving service, expanding offerings or refining delivery are just as
susceptible to losing marketshare as Betamax videotapes.
Restaurants must update their menu, customer interface and ambiance
regularly to keep from going the way of The Red Barn.
Peter
Drucker put it this way. “Innovation is
the specific instrument of entrepreneurship… the act that endows resources with a new
capacity to create wealth.”
Paraclete Consulting can assist you in evaluating your
markets, competitors and products. Our fresh perspective and creative approach can
lead you to a winning strategy. Give us a call for a free initial consultation.
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