A General Outlook on Innovation

Innovation

For companies that wish to shape the future, innovation serves as the most significant instrument creating a difference. Synergical, fast developments have been provided in many different sectors with globalization and economies of different characteristics have approached each other.

As the economical and social differences between developed and developing countries decrease, the number of niche markets (high-potential markets not yet discovered) have also decreased in parallel and possible opportunities have become accessible at equal level for companies throughout the world. As a result of such transparency, the number of high revenue generating projects has diminished and profitability rates have been compressed between specified ranges. The most basic areas that make a difference today and will continue to create difference in the future are innovation and entrepreneurship.

Companies which have made an early discovery of innovation and made innovation a part of their corporate culture have critically increased their revenues and profitabilities, attracted more qualified and creative manpower and created work areas accordingly.

Some resources divide innovation into three different areas:

  • Sectoral Innovation: Virgin’s switching to financial services and travel sector from the retail industry.
  • Corporal Innovation: Zara’s switching to a system where the entire supply chain is controlled from a business model established on design and dispatch.
  • Revenue Model Innovation: Emphasizing on how to generate more income from the same product and service, what can be done differently and sold which new customer.

As can be understood from different innovation models, innovation van be applies to many areas and is only limited by the ideas and projects of those who participate in the innovation process.

 

CEOs are aware of the significance of innovation (or are they really ?)

According to the results of PwC’s 14th Global CEO Research, CEOs increasingly concentrate on new product / service development issues.

 

Innovation is a significant instrument which conveys strategic changes to a business model for companies intensively experiencing advanced technology use and ever-changing customer requirements.  For other companies, investing in innovation is an important way for maintaining competitive advantage and not missing new opportunities. 78% of CEOs believe that innovation will create new revenue opportunities in the next three years at a significant rate.

Innovation can be “actually” performed in Turkey (or is it really?)

Turkey does not have a say in the field of innovation in the world and/or Europe. When compared in terms of performance, Turkey is below the European averages.

The relatively strong side of Turkey in terms of innovation is the existence of innovators with explicit and attractive research systems, and Turkey’s weak sides are the scarcity of qualified manpower in the field of innovation and the low budgets allocated by the companies to his field.

 

Innovation and Company Performance

(1) Innovation provides significant and sustainable competitive advantage to companies.

(2) Innovations missed may give rise to irrecoverable and impossible results and may have a negative impact on company growth.

(3) Changes in customer requirements, technological changes and global competence leads to the shortening of product life curve. What will gain importance in terms of growth shall be continuous innovation.

(4) Decreasing of profit margins and the pressure created in consequence shall be best compensated for by innovation.

-Follow-up strategies fail to satisfy.

-Cost-reducing measures provide short-term solutions.

-Product diversity can only be provided by innovation.

(5) Innovation facilitates the keeping up with the rapid changes in the sector and enables dynamic change management.

(6) Innovation provides a basis for the creation of profitable growth areas.

 

The New DuPont Model for Scaling Innovation

dupont inovation

 

 

 

 

The DNA of the Innovation Leader: Some are born innovative and some get to know afterwards.

 

According to a thesis published under the title “The DNA of an Innovator” by Harvard Business Review Press, one out of three people genetically have these features by birth and the other to can get to know innovation afterwards. However, there are certain distinct features that define innovative people:

 

-Innovative people think and  differently

-They ask questions

-They consider the unexpected and are ready to experience the unexpected

-They do not hesitate to take risks

 

It is a significant added value for companies that innovation is a concept which can be learned. Thereagainst, generalization of innovation to all company/group employees and the provision of their participation in the innovation process has an important role in terms of understanding the importance of innovation and the emergence of different ideas.

 

Companies which will shape the future and make the difference are distinguished by the importance they already place on innovation and their abilities to determine their future strategies.

Please, feel free to comment or share your thoughts.