Why innovate ?

We usually say that innovation provides organic growth and sustainability. Innovation allows one to go beyond fusion & acquisition. It is an alternative to geographic growth and brings many more benefits than the ultimate cost reduction. Innovation is a weapon for fierce competition in the marketplace.

Yes but, more practically, an innovation addresses other customers or other customer’s benefits.

Innovation is a strong differentiation lever that:

• Avoids the commoditization of products
• Distances competitors
• Generates high margins

Moreover, innovation can promote a brand or the image of a company.

Who can innovate ?

Generally, people think that new innovations exclusively come from large companies involved in the development of new technologies.

We must also consider the other innovators:

Small, and even very small, companies that are often more dynamic and flexible then the international giants.

Companies not specifically involved in developing new technologies.

How to innovate ?

Fierce competition pushes companies to innovate intensively. More new products must be launched more often. That cannot be due to chance or to artistic chaos anymore. Moreover, good ideas or smart technologies will not guarantee financial success.

Market acceptance, large-scale distribu-
tion, and then the payback of an innovation must rely on the companies’ abilities to structure and manage their innovation efforts.

We will talk about a structured innovation and an innovation process.