Innovation is critical to business survival

In its early years, 3M, an American multinational conglomerate corporation based in Maplewood, Minnesota, was a dismal failure.

After years of losses, company founders and investors had only 2 choices: close the business or change course.

3M executives did what most astute executives do when faced with failure. They used failure as an opportunity to find a path to success.

Today, the company generates nearly US$30 billion in annual sales, produces more than 55,000 products and employs over 84,000 people worldwide.

When Steve Jobs returned to Apple after his 12 years of wandering, the company needed a controversial US$150 million investment from “arch-rival” Microsoft to stay afloat.

Worse still, when Michael Dell (Dell computers) was asked what he would do if he were in Jobs’s shoes, he responded, “I’d shut the company down and give the money back to shareholders”.

But rather than close up shop, Jobs used these “ignominies” to make a remarkable comeback.

What is the ingredient that brought 3M and Apple from the brink of failure to realize such a marvellous record of success? Innovation.

3M institutionalised their innovative ways while Apple continues to innovate to-date. Innovation is sine qua non in today’s businesses.

Businesses that fail to innovate run the risk of losing ground to competitors, losing key staff, or simply operating inefficiently.

But if innovation has this potential, how can you use it as a survival skill to power your company’s success?

Successful innovation involves a level of prediction. Successful businesses anticipate future trends and develop an idea, process, tool, product or service, that allows them to meet future demand rapidly and effectively.

THE SOLUTIONS
The following six classifications of predictions can provide great opportunities and motivation for businesses to innovate.

Advancing Technology: Small and Medium Enterprises (SMEs) are becoming more technologically sophisticated. 

Gone are the days when large and multi-national companies (MNCs) had an IT advantage over their smaller rivals.  

Changing how we work: The use of social media technologies is part of today’s business culture, and the workforce is becoming more social and more mobile.

There are all indications that this trend is infinite.

Increasing Competition: Competitors are getting smarter, faster, and hitting the market with new and exciting products more briskly.

With innovation cycles becoming shorter and new products and services being released at faster speeds than before, existing businesses must keep up, either by matching product features or attempting to leap frog over competitors.

Increasing Globalisation: Before the advent of internet and the technologies thereof, competitors were local or national, for the most part.

To prosper in today’s rapidly changing and global environment, businesses have no option but to launch innovation programs to attract new customers, and open new markets for tomorrow’s sake. The changing world market belongs to innovators.

Increasing Consumer Expectations: With social media and the continuing advancement of technology, marketing is increasingly becoming personalised for each category of customer, in turn calling for new ways to market, advertise products and services, as well as gain and retain customers. 

Changing Workforce Demographics: A more diverse workforce is upon us today thanks to the changing workforce demographics.

Dr Ndung’u is a consultant in innovation. [email protected]