This is a new world. Changes are happening faster than we can keep up with. We have already seen companies that failed to innovate, have pretty much ceased to exist. An example that comes to mind is Blockbuster Video. Companies that fail to adapt to the new constant business changes, will most likely follow the same fate.
ADVANTAGES of Strategic Innovation for Products and Services:
1. Artificial intelligence will play a major role by 2020. All the current changes regarding the Semantic web, are taking place in order to structure data. The ultimate goal is to transition into Artificial Intelligence. This will open an array of opportunities for business owners and entrepreneurs.
2. 3D Printing will revolutionize the manufacturing industry. This offers the added advantage of, as we have already seen, the reduction of globalization. Instead, an entire new localized market will open up. Thanks to 3D printing, globalization is quickly shifting into the localization of products and services. This will have a major impact on local businesses and the innovative products and services local companies will offer their customers.
3. Mobile technology will continue to expand. Customer demand and the convergence of emerging technologies will be pivotal for business transformation. Mobile technology plays a major role in this consumer shift. That is certainly critical as the demand is clear for a more service-oriented economy. After you take that into consideration, then it seems sensible to invest in breakthrough innovation for product and services.
Unfortunately, there is also a negative side. Here are some disadvantages…
DISADVANTAGES of Strategic Innovation for Products and Services:
1. Not understanding the target market. Business owners may try to invest time or money in a new innovation without really understanding if there is a market for it. According to Bloomberg, 80% of businesses cease to exist within 18 months, the main culprit? Not understanding their target market. There is no way that could be a good thing. In fact, it may well be a good enough reason to avoid going after a new innovation completely. So first ask yourslef, what is an innovation that can help me solve my customer’s pain?
2. The old days of being everything to everyone are long gone. Today businesses that understand their vertical or niche market, understand their most profitable keywords and know the stage of the life-cycle of their target market will be able to come up with successful innovations.
3. Positioning your product wrong will be the kiss of death. The final reason to avoid innovation for products and services, is positioning your product wrong. I strongly advise any business owner to consider this point seriously, given the fact that it can result in major cash flow and profitability problems. Remember that if you try to sell your product as a “vitamin” rather than a “pain killer;” meaning, trying to sell as something nice to have but not urgent, will make your sales cycle much longer.
Innovation: Wrapping It Up
So there you have it, the actual advantages and disadvantages of using innovation for products and services. It may not be universal, not for everyone; nevertheless, it will probably benefit lots of business owners. It is important that you take into account that managing innovation is not a simple task. The suggestions made above are just a starting point. See if any of them will be a good fit for your company.
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