In the business world, innovation is a topic that most people can’t stop talking about. It seems like the company with the best innovation strategy wins, but it is more complicated than that. In this blog post, we will discuss some ways to develop strategies for innovation and how to use them to your advantage! Click here to learn more about it.
- 1 The Importance of Innovation
- 2 Developing an Innovative Strategy
- 3 How to use your strategy to your advantage
- 4 What this strategy can do for you
- 5 Final thoughts on how to develop a successful strategy for innovation!
The Importance of Innovation
Innovation is vital for every company because it allows them to stay ahead of the curve. Innovation also helps companies grow and evolve, which in turn leads to higher revenues and more customers.
So what are some ways you can innovate your way up the ranks? Here are a few examples:
- Offer new products or services that meet customer needs better than the competition’s offerings
- Stay on top of market trends well before they become mainstream so you can be at an advantage over other brands who might not see them coming until it’s too late.
- Find underserved segments: There will always be someone looking for something different from everyone else! Ensure this person has access to your product/service by understanding their
Developing an Innovative Strategy
A successful innovation strategy is a plan that outlines how to grow market share or profits through product and service innovation. When looking at an innovation strategy from the perspective of jobs-to-be-done, we see that execution of this strategy requires understanding what job executor needs are (i.e., who within our target customer segments should be targeted for growth), which job(s) they’re trying to do, and in which segment those customers exist.
One way to understand these nuances more clearly is by thinking about your company’s business model, as shown below:
Figure B Job Execution Matrix +Renewal Strategies=Innovation Strategy
The matrix shows four different components needed when developing a strategic approach for any given “job” in any given “segment.”
1. Job Execution Matrix
The first step is to identify the job you want to execute and understand which customer segment this job falls under. The matrix below shows how these two components interact with one another:
For your company’s innovation strategy to be successful, it must target certain groups of customers within a specific sector who are interested in executing different jobs. So if the goal is growth, but you only have enough budget for one new product line, then make sure that when developing this product line, you’re targeting those customers whose needs align with what better fulfills the original need (growth). Identifying misalignments between goals and opportunities can improve results exponentially!
2. Renewal Strategies
This is the second component that must be considered in order to develop a successful innovation strategy. Renewal strategies are those tactics or activities that help increase revenue and profits and include things like price increases, cost reductions, reduction of variability (scheduling production at maximum efficiency), increasing customer share, etc.
3. Job Segments
The third component necessary for developing an innovation strategy involves understanding which “job” executor holds the most potential within any given segment your company operates in throughout this matrix: If you want growth but need new customers, then focus on attractiveness – if you’re looking to attract more jobs from existing customers then focus on transaction frequency – if you have high retention rates among current customers with low transaction frequency then shift priorities to retention.
4. Innovation Strategy
The final component necessary for developing an innovation strategy is the “Innovation Strategy” itself – which includes what jobs you want your company to be seen as executing and in which segment those customers exist (e.g., attractiveness, transaction frequency) so that it aligns with both the current customer’s needs and how they are currently trying to execute their need-based job.
This entails understanding who within a given target segment should be targeted for growth and why this group of people deserves more attention than any other groups or demographics do:
- Are there specific products/services that will fulfill their most pressing need?
- Is there something about these customers’ experience with our business model that we should be conscious of?
- What differentiates us from the competition and makes us a more attractive offering?
- Under what circumstances do they “hire” us to fulfill their need-based job?
5. Who Are They Hiring Besides Us?
Competition is fierce in almost every industry, which means that customer loyalty is difficult to win and very easy to lose. Doing greater research into customers’ purchase patterns, what influences these customers to hire your company, and what happens when they do not have you in their “tool belt” are important questions to ask when developing an innovation strategy.
6. Renewal Strategies vs. Job Execution
Understanding the difference between renewal strategies and job execution is critical to understanding why you are implementing certain marketing tactics. For example, if you want to retain existing customers with low transaction frequency, then use marketing activities that get customers to buy more frequently rather than doing things like increasing prices or lowering your cost-per-unit.
7. Job Execution vs. Market Segmentation
The market segments whose needs align with your current products or services are much more attractive for the innovation strategy. For example, if you’re selling smartphones to teenagers, but smartphones are not in alignment with how customers are trying to execute their need-based job (i.e., seeking independence), then it would be a waste of time and resources to focus on innovating for this market
How to use your strategy to your advantage
Successful innovation strategy entails taking the time to understand what job needs are and how customers are trying to execute them. This is because an effective innovation strategy must correctly inform which jobs executors, jobs, and segments we want to target for us to grow.
In order to use these strategies to your advantage, you should review and evaluate your company’s innovation strategy periodically. This way, you will know if the jobs that your company is executing are still aligned with what customers want or need to execute their job-based needs.
What this strategy can do for you
The most successful companies understand what job their customers want to execute and how the company can differentiate itself so that it better fulfills this need. Making sure your business is seen as executing jobs that your customers want to see executed, will help you grow revenue and increase profits by either attracting new customers or getting existing ones to spend more money with you.
Lastly, understanding job-based needs will help you better determine where to invest your resources because it allows you to see how customer behavior is changing and why. This information can be invaluable in determining what jobs are most critical to success that should be executed first – especially if budgets are limited.
Final thoughts on how to develop a successful strategy for innovation!
A good way to think about developing a successful innovation strategy is through the lens of jobs-to-be-done. This approach helps us understand what customers want and need, which informs our ability to innovate for them. Innovation is the key to growth in today’s market, and you need to get started on one today. If you still need help figuring out what needs to be done, don’t hesitate to reach out!