A business model that is open to innovation is imperative in the digital age. However, a company cannot foster an innovative culture or implement an innovation strategy overnight. An end goal must be defined and a deep analysis must be done in order to cultivate a sustainable innovative business model. Many companies recognize the need to innovate, but fail by rushing to deliver an innovative solution, which can cause both internal and external problems.
Opinno’s innovative consultants and founders have significant experience in digital transformations and innovation strategy implementation, and they have shared their knowledge in the newly released book, “El Líder Ante la Innovación.” Below is a culmination of advice from both Opinno experts and external experts to ensure your business model is open to innovation.
Focus on Fostering an Innovative Culture
Forbes’ contributor and venture capitalist, Henry Doss, reflects on the importance of merging “culture rules” with a “business model,” so that a company finds the balance between optimizing efficiency and margin as well as cultural characteristics like risk-taking and creativity. Choosing between the two is ineffective, as a business model refers to money making, and behavior refers to the actions carried out to make money. Fostering an innovative culture by no means signifies lessening the effort and resources put into strategy, but rather implies incorporating design thinking and open innovation into strategy to foster an innovative culture.
Invest in Technology
In order to establish a business model that is open to innovation, it is helpful to invest in technology. Technology is changing every industry, and undermining its value could be detrimental to a company’s success. As competitors invest in innovation and technology, their production, logistics, and deliverables are optimized and made more productive, efficient, and economical. Failing to invest in technology suggests falling behind in the long term. Furthermore, investment in technology can serve as a competitive edge, therefore opening opportunities to fill market space. Technological shifts happen fast, and have the power to overtake a company, thus investment in technology should be considered.
Whether it be through public institutions, innovative consultancies, or a wider talent pool, looking externally can offer new perspectives, insights, and knowledge. Though open innovation business models are not recommended for all companies, the incorporation of open innovation creates innovation opportunities for a great majority. This is because a digital or cultural transformation within a company can be difficult to implement with change leaders that have been stagnant in a company. Research suggests that these leaders often represent resistors to change, rather than enablers.
Focus on your Customers
An innovative business model is one that understands the needs and expectations of their customers. As the needs and expectations of customers are constantly evolving and adapting, so too should companies’ business models. Omnichannel approaches have become imperative in customer satisfaction, as consumers expect seamless experiences across channels. Business models are changing as consumers are increasingly connected via social networks and the internet. Chief Innovation Office, K Ananth Krishnan offered advice to executives looking to ensure the cultivation of an innovative business model, and that is to look at how other sectors and industries are operating in terms of innovation. The boundaries between industries are blurring, and this tactic can shed a new light into managing customer expectations.