In the past 15 years the term "innovation" has been a constant in the vocabulary of entrepreneurs, business consultants and academics from business schools. However, the term is somehow misunderstood by entrepreneurs of small and medium companies, it is logical: it rather sounds like one of those business practices that apply only to big business.
This opens the door to ask how to apply the concept of innovation in SMEs? How can I differentiate my product or my business from the rest? How to compete effectively with few (or no) resources? The idea of innovation’s got a conceptual logic connotation to my knowledge. Although the great management gurus try to rationalize it , actually it goes through a review of concepts that have their foundations in a simple logic. Among them are:
a) How to solve the problems of my clients in a straightforward and easy way? How do I help them to improve their annual sales by 10%? How do they reduce operating costs by almost 20%? Logically, any customer will be willing to pay you anything if your service or product allows you to accomplish this. No brainer.
b) How do I define the market to which address? Should I try to create a generic product or should I try to specialize in solving the problems and needs of a niche market? This point is not so obvious to most people: the appeal of creating a service / product for "everyone" is always very tricky, where few companies throughout history have done it. As a matter of fact is way more profitable to exploit a specific market niche and once achieved then it would be feasible to venture other markets.
c) How to reinvent my product or service to make it more attractive? Will I create something that the market is looking forward but has not been invented yet? The first question regarding the current trend is to grant a "service" to your client holistically. It is not only delivering a product, you have to help understand how it will facilitate your customer’s life or business, how else they can use it so you have to show them the money they invest in your product is money well spent.
For years companies have tried to ignore the customer service in all these aspects. To date it is evident that any business that wants to grow needs to see itself as an integrated service. Regarding the second question, the answer is even simpler: unless you're Apple, there is no company in the world right now that creates markets for their products out of nowhere. It is the only one who has been able to do at least in a massive and successful scheme. Better focus your business efforts to reinvent your concept, to differentiate from the competition and become more attractive to your market.
Finally, all these ideas will be developed to better work in an environment of easy streamline decision- making and to promote team building among the different area within small business (production, finance, marketing). The cooperation and understanding between all areas of business will be the key to the transition from a traditional business model to a model where the company becomes a dynamic entity, evolving and constantly innovating.
Finally, all these ideas will be developed to better work in an environment of easy streamline decision- making and to promote team building among the different area within small business (production, finance, marketing). The cooperation and understanding between all areas of business will be the key to the transition from a traditional business model to a model where the company becomes a dynamic entity, evolving and constantly innovating.
www.clarensyst.com.mx
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