Tip Of The Week – Which is right for you? 2 different approaches to innovation
When it comes to innovation, how well do you “think outside the box”?
About the Author: Joe Galvin Chief Research Officer for Vistage Worldwide.
In his article, 2 different approaches to innovation, Joe discusses ways to focus on growth, and how to determine an innovative strategy for your business. He is clued into the difference in high-growth companies that are more engaged in innovation than no-growth companies. Yet he notes that small and midsize companies don’t all approach innovation the same way.
Presented with two innovation strategies and leveraging them to outpace the competition:
1. Incremental innovation
Increase profits by devoting more time to each visit. Put simply, incremental innovation refers to a series of small improvements or upgrades made to any existing products, services, processes, or methods. Any changes implemented through incremental innovation are usually focused on improving the existing development efficiency, productivity and competitive differentiation of a product or service.
2. Radical innovation
Software-as-a-service (SaaS) where customers preview materials in a digital view and get 90-second price quotes. This type of business model is largely dependent upon recurring billing software and other software specific to digital e-commerce platforms. Essentially, subscription payments can lower the barrier to entry for products and services and allow more potential customers to purchase your product.
“Innovation requires leaders willing to break the status quo to build a better business. The key is to figure out which approach is best for you and your company” ~ Joe Gavin