Understanding Innovation Patterns in Startups will help young entrepreneur gear resources towards areas where they can stay competitive and develop a mindset that guarantees success. Innovation requires rethinking existing markets, products, customer segments, and value propositions in radically new ways. Hundreds of people built social networks before Mark Zuckerberg came along. But Facebook emerged as the winner, and it now has the potential to grow into the most important company of this era.
More and more successful start-ups emerge in different industries to change the world and disrupt the way of doing business. What do they do differently or better compared to established companies? What can your organisation learn from start-ups? Should you incubate, acquire or invest into start-ups?
Startups are often assumed to be the purest form, the very essence, of innovation. But that is a fundamental misunderstanding of startups.
The depth of startup opportunity requires that an entrepreneur create:
1. New Products:
Creating and introducing new product into the market.
New products are goods and services that differ significantly in their characteristics or intended uses from products previously produced by the firm. While 60–70% of new product launches fail, introducing a new product or service can boost sales and market share, and also fuel growth.
Market research is the key. Without the necessary information, you’re simply flying blind in a storm, headed for a crash landing. Market research does more than confirm your “gut feeling,” it provides critical information and direction.Many products need to be timed to critical points in the business cycle. Miss it, and invite failure.
Identifying the right target market can often be the difference between success and failure for new products. The right market will be more willing to accept, and ready to pay more for, the right product, and the wrong market will be slower to accept your product and will require more marketing efforts, cutting down on your profits. define your market as accurately as possible so you have a deeper understanding of exactly who you’re selling to.
2. New Services:
Providing new Services to consumers.
Creating new services that captivate consumers and generate profit is a tough job today. The abundance of offerings, vendors, and channels makes the competition for consumers’ attention particularly keen. To stay ahead of the game, you Start withthe customer, not the technology. Identify the next winning services with more certainty. Prioritize quickly and effectively among competing ideas and investments. Develop value propositions that customers find compelling.
Implement the chosen strategy more quickly. The new service development process involves recognizing chances and opportunities in a fast changing technological environment. know your objective and know your customers. Creative solution could only appear by understanding nature of the service and the problems which people already dealing with and you think that your service is the solution.
3. New ways to deliver products:
Using new channels and technology to improve product distribution
Delivery is the process of transporting goods from a source location to a predefined destination. There are different delivery types. Cargo (physical goods) are primarily delivered via roads and railroads on land, shipping lanes on the sea and airline networks in the air.
It is important to remember that the efficiency of your chosen transport method will affect your export costs and your relationship with customers. You should consider carefully what your particular priorities are. Above all, it is vital that your goods get to their destination in good condition, and within the delivery time which you have established with the buyer. Reliability, time and price are fundamental aspects of customer service. Selecting a method of transport for your goods involves a thorough investigation of the processes involved in each option. You should be thinking about the advantages and disadvantages of individual transport methods in relation to the needs of your product.
Factors that will influence your chosen delivery method are:
Speed of service
Safety of goods
Ease of use
Value/Fragility of Product
Perishable or Hazardous Products
All the above mention factors will affect the perception and final quality of your product when delivered to your customer.
Your main priorities are to provide a competent and professional service to customers, to ensure that your resources are used in the most efficient way and to obtain full payment for your efforts in order to maintain cash flow.
4. Better means of announcing product:
Improving the ways products and services are communicated to consumers, using new and available channels to better promote and advertise.
The purpose, function, and goal of announcement is giving certain people some information of what has happened or what will happen. Press releases are certainly one medium, but as audiences get more segmented and scattered, relying on just one medium isn’t enough.
The most important thing you can do is to build your campaign to fit your company’s brand. You want to assure your fans have no question of whose product they’re looking at when the come to your campaign. Once you’ve determined that your company has a message ready for delivery, pick a platform to make the announcement effectively. Note what other companies are doing, but don’t necessary replicate their strategies, especially if imitation is inappropriate.
Social media platforms have made it much easier for companies to deliver their news in ways worthy of a double-take. Now, instead of spending a ton of money hoping to get in front of the “press,” you are the media. Social media allows you to connect with people and encourage engagement with very little money and only a nominal effort. Email is also a fantastic way to announce a new product or service your business is offering. The key to getting your audience excited about your latest business offering.
The key to introducing a new product is to get your followers to focus on that and ideally purchase it.
5. Continuous innovation :
New ways of getting things done better marketing and distribution.
Innovation can be a catalyst for the growth and success of your business, and help you to adapt and grow in the marketplace. Being innovative does not only mean inventing. Innovation can mean changing your business model and adapting to changes in your environment to deliver better products or services.
Continuous innovation revolves around changing technology even though the use of the basic product does not change. Continuous innovation requires one of two factors. First is a major change in one area of behavior that is relatively unimportant to the consumer. The other is a minor alteration in an area of behavior that is vitally important to an individual. While other types of innovations exist, this will cost you less resources and will primarily do the intended job until a major disruption happens. Always pay attention to how your industry is changing, and also trying out new ways of getting things done. Consumers simply care about cheaper, faster and better. Anything outside of this should be taken with a pinch of salt.
Continuous innovation generally does not fundamentally change the dynamics of an industry, nor does it typically require end users to change behavior. The opposite of continuous innovation is discontinuous innovation, also known as disruptive innovation.
6. New way of managing relationships:
Approaches to interaction patterns between the org and the General public
Startups often fail at managing customer relationships while lowering the costs associated with marketing and acquiring new customers.
Skill in negotiating, listening, educing misunderstandings, discovering each person’s wants and needs and then working out a way to fulfil these different . Relationships are very important part of our lives, and often give us meaning, purpose. Learn how to create a strong dynamic with your customers for greater product and service satisfaction and advancement.