Why is it necessary to innovate?
We have several reasons for wanting to innovate, to have a solid and agile innovation process within the company, among them:
- all products have their life cycle and these must evolve, scale, jump to other versions.
- The enormous amount of disruptions we have in terms of technology and the current speed of adoption.
- retaining the talent that will be attracted by the avant-garde and by trying and developing their own ideas.
This is why innovation will be our cornerstone in the ability of the company to adapt to a highly changing environment, where understanding the customer (customer centric) and put it at the center of all decisions is fundamental. Their expectations, needs and through different channels synchronized and orchestrated (omnicanal).
When is it necessary to innovate?
As the product enters the sales growth phase and its performance within the company’s P&L are in consolidation and with high growth. It is also necessary to innovate when there are disruptive changes that will impact our business model either through new technologies, new regulations or opportunities for synergies that allow us to simplify our service and make it more effective.
How should we innovate?
Based on data. The range of possibilities and candidates to emit ideas is potentially enormous and unembraceable for the resources of the company in most cases. How to invest in order to iterate about innovation before running out of resources is key. Each innovation can be interpreted as a startup looking for its business model.
To facilitate the process, you must have data (smart data), and have close to customers to try to capture their needs and expectations. In order to do this, it must be possible to access the transactional data of customers: how they use the product, what they like, in what they would improve it, how through automatic processes that capture this information, through customer service to be able to identify key tickets with the feeling of users, Focus groups, surveys.
With this information, we would be able to identify what types of customers and clusters we have and what would be our objective and through their analysis, we could ponder which innovations will be the most beneficial for the company and its customers. Having identified target customers and market trends, industry specialists and opinion leaders, key needs to be met can be detected. It is very common to have Customer Success Managers, specialized in generating communities of users and customers and identifying their feelings and fundamental needs.
Innovations can be very diverse and can be through offering, experience or trying to capture trends (coolhunting) and include them within the roadmaps of products or through new products. With the findings of the observations, their analysis, reports will be generated for decision making based on cost, return, value for the company and marketing expenses and the results can be validated with key customer groups, media and probe campaigns.
The measurement of results and their potential will lead to the development of an action plan to get each innovation initiative up and running. These initiatives must be combined with rationalization, improvement of the efficiency of the processes for obtaining the product and the channels in which there is interaction with the customer. The scope of innovation initiatives should be significant and achievable in a limited time and using the MVP (Minimal Viable Product) to make it quickly available to our customers.
Since to the question of how to innovate, it would be smart, data-driven and quickly to leverage the momentum identified and get there before the needs change again.