Business innovation isn’t an option in today’s business world – it’s a necessity. The days of relying on flagship products, long product cycles or traditional business models to sustain growth have long gone.
Now, companies must keep pace with the rapid changes in technology and consumer behavior by developing new products or improving existing technologies, processes, designs and marketing to solve problems, increase efficiency, reach new customers, and ultimately increase profits.
Continuous business innovation usually requires thorough planning and you should ideally have innovation as part of your business strategy and business plan. Innovation will not only improve the chances of your business surviving, but also help it to thrive and drive increased profits. A well crafted innovation plan will help you to:
- validate the feasibility of the idea, product or solution;
- evaluate the market potential;
- verify that there is a real demand for the idea, product or solution;
- provide the credibility and focus, which is vital to attract investors or funding.
The key elements to be included in your Business Plan
The business plan for innovation should clearly demonstrate:
- how the idea, product or solution will be developed and exploited;
- the capability and experience of the team;
- how the costs will be financed;
- how investors will be able to realise their profits.
Other key questions that your innovation plan should answer include:
- What is unique about the innovation and is it protected?
- Who will buy it and why? Is there a clear customer demand and will the market be large enough to sustain profitability?
- What will it cost to deliver and how much will it sell for?
- What is the competition, and how do you propose to tackle this? Does the product have a clear competitive advantage and can the advantages be sustained and improved upon?
- When will the business start receiving income and when will it break even? Will this product have a positive return on investment (ROI) and does it support the company’s overall growth strategy?
Answering these questions can be a daunting task for companies, especially if they lack an innovation strategy. However, companies can still get the answers they need to invest in innovation — with a little outside help. Feel free to inbox me or schedule a Discovery Call.