What is Innovation and why is it important?

Innovation isn't always about creating a new product to sell!

It's the improvement of anything. It could be the accountant that comes up with a better way to do the quarterly report or the office cleaner who finds a way to reduce the use of harmful chemicals. Innovations are not the exclusive area of software engineers but what they do is typically more visible and sexy!

Improving your procedures and processes is important to improve your business efficiencies. The term innovation is derived from the Latin word innovare, which translates as renewal.

But what do we mean when we talk about innovation? It’s a deceptively simple word with a million interpretations. For some it can be about simple changes; incremental decisions and refinements that give big results.

When you are continually innovating and improving on the practices of your business you will likely also attract better staff and keep more of your existing staff, find new customers and increase your profits. It enables you to respond to competitive trends and technology.

Innovation adds value to a company and gives you a commercial advantage. It's a process that renews your service or product to bring it up to date by applying new processes, new techniques and ideas that add new value. Continuous innovation is, therefore, crucial for all companies.

To be innovative with your processes and procedures you need to think outside the box in order to create incremental enhancements. In order to realise innovation, leaders should be open-minded and collaborative. ?Innovative leaders are curious and are optimistic since they dare to take risks, however, everyone is an innovator because the innovative ability is in all of us.

?Having an innovation strategy means the improving of internal processes to strengthen the company or lower costs, and the development of new business models in order to create and exploit revenue streams. Companies collaborate on innovations because they have a shared interest or can complement each other.

Collaboration with a bigger innovator can be particularly valuable for smaller businesses. In turn, large companies can avoid long bureaucratic processes and shorten the time needed to enter the market.

How have you been innovative today?