Tuesday, August 17, 2021

After all, what is corporate innovation?


Corporate innovation is a constant cycle of searching for the new. Disruptive or incremental innovation can be carried out, at different levels of depth, but always with a focus on solving challenges in a different way, bringing a new look at the problems that arise. It is also a way to position yourself ahead of the competition, to prepare for the future that will necessarily require changes, sooner or later.


A recent survey by McKinsey & Company, the world leader in the business consulting market, finds that 80% of executives at traditional companies believe their current business models are at risk. Meanwhile, research by CB Insights, a company specializing in business analytics and global database, says 42% of startups fail because they don't meet the market's need.


The comfort zone can kill a corporation, or you're innovative, or you'll be dropped. Innovation, in addition to doing something new with unprecedented results, is also doing something different that is already done on a daily basis, aiming at greater efficiency, productivity and cost reduction. With the constant digital transformations and changes in consumer behavior, it is natural that there is a race for differentiation and consolidation of the company's operations, and corporate innovation allows these companies to promote strategies to improve their market position, both through the development of new products, services and technologies, as well as distribution channels, organizational processes, new ways of competing or cooperating, new business models, etc.


Through the right tools and the right methodologies, the company that achieves innovation has more possibilities for gains in business and market recognition, since it starts to detect challenges accurately and identify or implement a culture of innovation. This opens up the range of action and expands the network with startups at different levels of maturity, raising support and mentoring opportunities through the presentation of solutions that better satisfy the public and their expectations.


Today, in addition to being possible, it is extremely necessary that traditional corporations with decades of history also be innovative. This vision keeps the company ahead of competitors, enabling increased revenue, cost reduction and greater efficiency in its processes. It's a constant renovation, to stay relevant. One of the success stories is Magazine Luiza, a “traditional” Brazilian company until recently, but which opened its innovation front, acquired dozens of startups and even bought Young Nerd, a content-oriented company.


Many corporations want to start the open innovation project through matchmaking. But the cultural crash can be an insurmountable barrier. It is important to prepare the ground, know your challenges, your market and work on the internal culture to welcome the new. Having external support is a good start as it is very difficult to change the internally established culture without the support and expertise of partners.


One of the innovative processes that can transform the daily lives of companies is the action of digitizing back office processes, this is an example of how innovation brings cost reduction. Knowing and doing business with retail techs can increase the corporation's sales in a matter of months, and new onboarding and employee training solutions can bring greater retention of talent in the medium term. Also using diversity-focused decarbonisation or edutech solutions brings speed to companies' ESG goals. There are countless possibilities that only depend on the willingness of companies to take the first step to innovate.


Not knowing where to start is part of the process, but fortunately, there are solutions that address this need, contributing to analyze, guide, develop and execute the necessary actions for organizational innovation. 

It's already time for your company to get involved and search for strategies, which quickly show a path up towards corporate innovation.






AQC - Amancio Quality Consulting - a Brazilian consultancy company for process improvement.

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