“Innovation is seeing what everyone else has seen and thinking what no one else has thought.”
- Albert Szent-Guorgi, 1937 Nobel Prize for Medicine
How many new products or services do you introduce a year? Where do you gain your insight on what those products or services should be?
In order to continue growing your business profitably, you know that you have to constantly introduce new offerings that allow you to compete on value, not price, in order to maintain the highest possible margins. To accomplish this, it is necessary to find opportunities in the market and provide solutions your competition has not considered.
If you have read any of my previous blogs on innovation, you already know that I am a big fan of 3M and the resources they put into innovating new products each year. Their goal is to earn 30% of their annual revenue from sales on products introduced in the past five years. One of my suggestions as you gear up for annual planning and budgeting this year is to make sure you have a key initiative around innovation and a line item in the budget to support it. Once you have done this, you need to have a strategy for coming up with those new ideas.