Trends in corporate innovation - an overview

Many small businesses faced unusual challenges in the last 2-3 years just to be able to keep their doors open. To do so, they operated with extraordinary degrees of adaptability to satisfy the shifting market’s needs and trends. Flexibility represents the main driver for growth, transformation, and corporate innovation. As a result of adopting a strong innovation plan, firms have the opportunity to develop new revenue streams while boosting existing ones.?

High-growth nations are leading the way in creating a thriving venture capital sector that helps researchers and entrepreneurs launch innovative startups to commercialise their patents. The venture capital sector is also likely to assist economic growth by helping with IP management, creating new commercially valuable networking opportunities, and encouraging companies’ internationalisation strategies. These programs make sure that businesses can generate value for their shareholders.?

Consumers are seeking a higher level of accountability and transparency from the brands they interact with. When compared with “veterans”, emerging companies have an improved ability to innovate within their supply chain and to implement new technologies to minimise the impact they have on the environment.?

The only function of innovation policy has always been to facilitate the capability and connectivity of and within systems to innovate. However, this is changing.

In order to better understand how policies can truly be beneficial and effective, it is crucial to analyse the main trends these new businesses are going through.

Intelligent composable business?

Intelligent composable business changes the decision-making process by obtaining and responding to data in a more flexible way. It allows the redesign of new products, channels, and services, as well as business models and autonomous operations. Moreover, it accelerates the digital era and provides an agile experience for both customers and employees. Building your business operations around this concept encourages organisations to remain adaptable in the face of constant change and fosters stability in dynamic circumstances.?

After researching how firms create resilience to prepare themselves against significant disruptions, a study conducted by Gartner predicts that by 2023 those who do so will adopt new product features 80% faster than the competitors.

Sustainability?

It is well known that consumers are becoming increasingly alarmed by weather occurrences and oceanic waste accumulation. In September 2021, a survey was conducted by the National Retail Foundation (NRF) and IBM about the perception of climate change on consumer behaviour. Results showed that 62% out of the 19000 participants are open to altering their purchase patterns in order to lessen their environmental impact. Nearly 68% of employees declared they would more likely apply for environmentally conscious companies, with 48% willing to accept a lower average income.

Regarding small business trends in 2022, the reduction of the environmental impact is clearly one of the most important. In order to do so, employers must make significant changes to their business model and strategy. Look for ways to cut the amount of energy and greenhouse gas emissions, and assess the long-term effects of your product lines and packaging.

These actions can provide your company an edge in the hiring process and boost its own resilience by making it more responsive to environmental challenges. Venture capital helps remarkable entrepreneurs expand their business and scale innovation for more sustainable and smarter industries.?

Artificial Intelligence?

?Leaders in user experience must gain a greater understanding of AI and how it affects the acquisition and retention of customers. Delivering innovative products, services, and business models powered by AI will be essential for creating a differentiated digital experience.?

According to a study by MIT up to 50% of all customer inquiries are now entirely answered through automated channels, and businesses are already investing in AI to boost corporate innovation and improve the user experience. Moreover, brands implementing AI benefit from higher efficiency, greater brand loyalty, and an increase in revenues.?

We have talked about it in more detail in our latest article “How will ChatGPT and AI change corporate innovation?”.?

AI will eventually have cognitive capabilities comparable to those of human specialists thanks to in-depth learning. Labour-intensive industries will be substantially impacted by this technology, which will also alter the global economic ecosystem, meaning that businesses must innovate to keep up with these shifting conditions.?

“AI will not replace innovators, but innovators who use AI will replace those who don't."

Companies engaging in innovation-intensive activities are extremely diverse and they require specific support to boost corporate innovation or R&D activities. Rapid technological advancement has caused significant changes in the global economic scenario during the last 20 years, and these developments are predicted to continue persistently.

Empirical findings demonstrate that the development of a thriving venture capital industry to support startups, a strong national innovation ecosystem, and a sound financial sector are essential drivers for sustained economic growth in European countries.?

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Reference

Kenway, N. (2022, March 7). How VCT investment is supporting sustainable innovation. ESG Clarity. https://esgclarity.com/how-vct-investment-is-supporting-sustainable-innovation/?

Top 7 Small Business Trends To Know for 2023. (n.d.). Paychex. Retrieved March 21, 2023, from https://www.paychex.com/articles/management/small-business-trends?

Userlane, T. (2019, May 9). Trends in Digital Innovation Shaping the Post-Digital Era. Userlane. https://www.userlane.com/blog/digital-innovation/?