Growth Through Innovation

Viewpoint by Phyllis Rothschild, Partner

Do the companies you read about seem more innovative than yours?  It may be that you’re defining innovation too narrowly and not exploring enough angles to drive creative growth opportunities across your business.  Innovation goes well beyond new and unique products or technologies.  If you break down your business model into its core components: 1. the customers you serve; 2. what you offer them; 3. how you capture value; 4. what activities and assets you employ; 5. where you are differentiated from the competition, and; 6. who you have as talent to deliver on your offers – innovation can come from anywhere. 

Perhaps you haven’t thought hard enough about your customers’ expansive set of priorities and where you could play a larger role in meeting those (think about cardboard companies providing packaging services to CPG companies).  Even looking at how companies in other industries get paid (financing, long term contracts, leasing, value sharing, etc.) can give you ideas about how to redefine value capture in your space (think about an industrial carpeting manufacturer leasing carpeting to corporate customers).  Try looking outside your own employee base for a creative way to enhance what you do and when you do it for your customers (think about technology companies offering care 24 hours a day by outsourcing customer service to Indian call centers).  Broadly define innovation and you just might find that great and practical ideas are lurking all around.