On XFM this week, we had a conversation on how business leaders can better serve their customers, grow their business, expand their market, and increase demand for their product or service.
We looked at why it's crucial for business leaders to foster a culture of continuous innovation across their enterprise.
How can you serve your customers better? How can you improve the product or service that you sell to your customers? What is the fundamental source of growth in your business?
A culture of continuous innovation is the answer.
Why should any business leader need to foster a culture of continuous innovation in their business? Why should innovation be core to your business strategy?
Innovate to differentiate your product or service
Innovate to out-compete
Innovate to access new markets
Innovate to survive
Where in your business can you innovate? Which areas of your business can innovation add value? You can start by making changes to your product or service. When you innovate around the product or service, the goal is usually to add value.
The second area is to make changes to the process you follow to make or sell the product or service. When you innovate around the process you are looking to boost efficiencies, reduce costs, or improve customer care.
The Third area to look at is to change your business model. When you do this you are looking to alter three areas of your business model: (1) your value proposition, (2) revenue model, and (3) value chain.
Today's success is the enemy of tomorrow's success.
Below are some business model ideas for you:
Improve the performance of the product. Add new features to your product. Don't just serve juice in a plain glass - add ice cubes, a lemon garnish, and colored straw. Call it cocktail and sell it as a new product.
Change the technology you use to make your product. Leverage social media to market your product. Find a new channel to reach the customer through technology.
Sell directly to the customer instead of going through a middle man. Offer the product for free but get paid to maintain it. Sell the product for cheap and make money on add-ons and new features.
Have another company sell your product for you and pay them a percentage of the sales. Barter your service for a product you need from a supplier. Franchise your business and have others pay you franchising fees.
Make more of your product so customers don't have to go elsewhere. Mass produce so you are able to lower the unit cost. Give the customer the bare minimum - charge for bells and whistles later
Offer all your services at one flat rate. Give your app for free but charge a subscription to access premium content. Do the exact opposite of what your competitors are doing.
The most dangerous phrase in business is: "we've always done it this way!"
The best time to innovate was 10 years ago. The second best time is now. Where do you want your company to be 5 years from now? Is continuous innovation a part of that strategy?
Be part of the conversation on Twitter @timothylaku and follow the hashtags below: