Innovation is critical for business success. It can help businesses develop new products or services, move into new markets and improve their operations, all of which can give them a competitive edge over their rivals.
Customer needs and preferences are constantly changing. Businesses that losing market share to competitors who can better meet those changing demands. By aligning products and services to what customers actually want and need, businesses can improve customer satisfaction and loyalty.
The purpose of innovation is not only to enhance customer relationships, but also to foster strong relationships with employees. In today’s job market, high level talent is sought after, and businesses that can demonstrate that they are innovative and forward-thinking are more likely to attract and retain the best employees. This is particularly true for younger generations, who often prioritise working for companies that are making a positive impact on the world.
By prioritising innovation, businesses can position themselves for long-term success and growth. For this to happen, businesses need to focus on value creation for all stakeholders, both internal and external.
Innovation through value creation
Business success is closely linked to value creation because the fundamental purpose of any business is to create value for its customers, shareholders, employees and society as a whole. Value creation refers to the process of creating new products, services or experiences that provide a benefit to stakeholders and contribute to the overall well-being of society. If we look to the innovation model of Design Thinking, there are three phases in the value creation process:
Phase 1: Inspiration
The first step in the innovation process is to understand the needs of the end-users. After forming a connection to establish trust and rapport, we need to empathise with our stakeholders. This can be done through a process of Empathy Mapping, which involves observing, listening and engaging with users to gain a deep understanding of their needs, desires and pain points. By doing so, we can develop a clear and comprehensive understanding of the users and their needs.
Phase 2: Ideation
Once we have defined the pain or gain, the next step is ideation. In this stage, we explore different options and generate ideas for solutions that address the needs of the end-users. This involves brainstorming and coming up with a wide range of possible solutions without judgment or constraints. The goal is to generate a large number of ideas that can be narrowed down to a few promising ones.
It’s important to start with divergent (out-the-box) thinking, before starting to evaluate the feasibility of the different solutions. Divergent thinking encourages creativity, brainstorming and exploring multiple solutions to a problem. Before we narrow down those solutions to the most viable option, we need a large pool of potential solutions to work with.
Phase 3: Implementation
Once we have identified the most technologically feasible and financially viable solution, we move into the third phase of value creation. This stage has two parts: prototyping and testing. We develop prototypes of the best solutions and test them with end-users to validate and refine the ideas. This involves creating low-cost, low-fidelity prototypes that can be quickly and easily modified based on user feedback. By testing and iterating on the prototypes, we can refine the solutions and ensure that they meet the needs of the end-users.
Developing an innovative business culture
Innovation is a skill that can be learned. Working with corporate business, Newmella Holdings trains leaders in the skills of innovation: including Design Thinking, Neuro-linguistic Programming and leadership skills. For more information or to get a quote, email us at queries@newmella.com.
Established in 2015, Newmella Holdings has helped numerous organisations in diverse industries to reposition their brands for future growth. We offer corporate training for groups designed to develop inclusion and diversity, conscious leadership and change management skills. Working with executive and leadership teams, we help businesses develop an understanding and practice of innovation through NLP and behavioural coaching.
Leveraging the strengths of our diverse capabilities, we are united in our commitment to delivering a return on investment and enabling you to master the Behavioural Psychology of Innovation for sustainable success. We are a team of thought leaders and industry experts who are passionate about the value of culture transformation for innovation.