Innovation is the most intricate human process of adding value to the world and of solving more pressing problems of our society. Unfortunately, in the business world the common misconception, that says, creating new product or service can only be innovation, limits the power of innovation largely. However, in last few years this very idea of controlling innovation within a single cage of “new product” relapsed significantly.
Business world is now habituated with the truth that, nobody can afford creating continuously new product but can innovate without doing so. now we accept that, the very first product of the series is the actual innovation rest are some modified version. Take iPhone. The very first version of iPhone was a true innovation but later on the other versions of iPhone were just addition and subtraction of first version. Limiting scope of innovation can yield very little soup for business than widening its scope. However, now innovation is a widespread issue. This very human process no more confined within the cage of “New”.
For a long time innovation has been playing a very important role in success of any idea or organization. Dell innovative business model is one of most critical impetus of Dell success, Apple is largely successful because of its continuous innovation in new product category.
To survive in this over competitive business world one must innovate in any part of its business process. Innovation can be anything from new product to service to process to communication method to anything that can solve a problem more effectively and efficiently than existing solution.
The first step of innovation is understanding existing state of development in whatever area you want to innovate. Say for example, if you want to innovate in the area of business model then examining existing business model and identifying where it can be improved and can be changed positively is important. Understanding current business model is the first step to innovate a new business model that can possibly deliver more value than existing business model. In case of innovating new business model a company should consider its basic value delivery, customer preference, customers reaction to change, and new development more critically.
Dell is a celebrated example for business model development. They innovated the cutting edge and customized distribution model for personal computers. Instead of selling pre-configured systems, they let customers customize their computer, order online, and then build the computer based on customer specifications. Changing their business model was not easy for Dell. Changing their business model in this way also required their suppliers to modify their processes, causing a ripple throughout the industry, but one that turned out to be advantageous for the industry and consumers alike. Dell’s early adoption of Internet technologies to enable customers to configure their computer online is a stamp of business model innovation. Dell’s business model capitalized on new Internet technology, as did the business models of Amazon and eBay.
Today in a world where most sophisticated technologies are available anywhere at any time companies can easily innovate their business model by using existing technology without waiting too long. If you are working on your start-up consider innovation in any sector of your business process from selling to distribution to production to product to business model.