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Innovations Can Help a Business Grow

by Ron Kurtus (updated 19 January 2022)

You can grow your business and gain a competitive advantage through establishing innovative products, services, or processes.

These innovations need to be able to delight the customers or add value to their purchases. On occasion, an innovation may fall flat or even have a negative effect on the business.

Questions you may have include:

This lesson will answer those questions.



Innovative products

A new or improved product can increase sales and help a business grow.

Apple Computer Co. did not invent the notebook computer, but they innovated on the designs of competitors to release their iPad, which was not only much better than others, but also had a sleek design and user interface that appealed to consumers.

Of course, some innovations do not strike the fancy of customers and result in a failed effort.

In 1981, Apple introduced the Apple III, which was supposed to be a business computer. Unfortunately, it was clunky and unreliable. The innovation was a failure for the company.

Innovative services

An innovative service is a new or improved way of serving customers.

Nordstrom department stores go out of their way to provide extra service to customers, resulting in customer loyalty

Some companies try innovative services in the wrong way.

Although Office Depot tries to provide service in helping customers find things, they go about it in the wrong way by approaching customers as they barely get into the store and asking them what they are looking for. This is an annoyance to many buyers.

Innovative processes

An innovative process is an improved or new way of doing things or making products that will reduce costs, improve quality, or cut down turn-around time.

After starting Ford Motor Co., Henry Ford came up with an innovated idea to reduce the costs of his cars. He started mass production assembly lines which made his company a leader in the automobile industry.

Some innovations can result in no improvements.

At first, Management by Objectives seemed like a good idea to improve running a business. However, the concept became distorted and actually resulted in dysfunction in some companies.

Innovative processes can improve the profits of a business, if they are good ideas.

Summary

A business can provide an innovative product or service or can use innovative process to improve customer satisfaction and increase their sales. However, it is also possible to implement a poorly though out innovation, which can turn off customers.


Improve


Resources and references

Ron Kurtus' Credentials

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Worker Satisfaction - University of Tennessee student newspaper article

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