A set of two words summarizing a planned effort to identify and pursue opportunities for technological change. Innovation is the change that initiates strategic planning; either as a matter of adapting to conditions outside the sphere of influence and locus of control or cultivated by new thinking and a need for change. A new approach, solution, system change, or design is often considered innovative ways to modernize or change the environment and improve performance, but when everything is going well, there is no obvious need, which is actually when innovation should start. A ‘need-based’ system of work is not the highest level of performance. Companies that innovate focus on far more than just meeting the needs and demands of their customers and employees. Technology companies that build determine what is logical and best, giving much-desired features that their customers aren’t not even aware are possible. This is why technology innovation has the greatest impact – it can open up possibilities many experienced business strategic planners had no idea was possible or affordable.
This sparks the need to seek professional help outside the company, like a consultancy, or to develop talent permanently devoted to innovation. An innovative company understands that for technology to work its best for the company, it must innovate beyond the company. This is why it’s so beneficial for companies and their partners to invest in technology together, because technology performs its best working across an entire industry, rather than a ‘target market’ approach.
If a company can think strategically beyond itself, its partners, and customers – no longer limited to the only product it provides or area it serves, and step outside of the ‘market share’ or ‘regional leader’ approach, or ideals of price leader or preferred vendor ideals, it can then free itself from the boundaries and restrictions it has placed on itself because of its targeted focus. If it could consider how its products and people work with technology, inside the walls of its operation or in the lives of its customers, it can begin innovation and integrate technology in its offerings.
It would require a shift – from single profit line addition and subtraction goal setting and evaluation to high, ethically. and morally driven plans to revolutionize far beyond a single product or service through the use of technology. Sometimes information is more valuable than the product being sold.
Businesses must understand and seek to leverage not only data, but technology and ideas from other sources; using risk evaluation to help guide it through its decision making, or trying a new approach of non-predictive non-numerical or data-driven intent to profit, but with specific goals in mind. Like making a product change, move to clear the way for the advancement of another product, or introduce another more profitable part of the business in the exchange of information or engineering of systems, standards, and processes.
It might seem unfathomable to partner in investments with external companies beyond simple outsourcing terms of tasking, but to share in the investment and profit share that the technology brings. When a company leader innovates with technology at every point, it paves the way for the entire market to revolutionize and benefit. If the leading company does not focus on investments and profits in terms of its system design being profitable for the entire industry, and only focuses on its small company or single company profit margin – then much is lost.
When things are functioning well is the best time to begin strategic planning for innovation. It’s also the best time to evaluate systems and technology because well-functioning and high performing organizations know their jobs and systems well and achieve consistent results – this means it is time to innovate.
Responding to market conditions by taking immediate action using human resource adjustment, organization, or buying a new product, is not the best approach, and can cause long-term damage. Although some things require urgency, major technology changes and sometimes even small ones require careful planning and tests. Resistance to change is the opposite, where leaders fear making any change so the status quo remains and the expected result is always achieved. This leads to stagnation and eventual employee retention problems. Innovative companies know and understand how creative technology changes affect an industry, possibly large populations in high numbers, beyond a single organization, and can effectively and efficiently manage areas of impact, with clear intent and outcomes. When external change out of the locus of control occurs, companies are forced to adapt.
Long-term industrial planning and market leadership is key to innovation, beyond evaluating technology for a simple internal process for automation or to make the ‘sales process easier.’ Innovators have developed technology that has changed the way things are ordered, bought, sold, managed, needed, or no longer needed and wanted. It’s the ‘individualized’ and ‘separate’ approach that prevents a nation or world from functioning as one unit and while it’s good for companies to be profitable, focused, and business minded; they need to take it a step further and function in the best interest of the industry, market, or population for best results.
A specific technology change implemented by one small company can revolutionize the entire world if companies could adjust their understanding of innovation and strategic planning for technology.
In insurance: A company sought to create multiple store fronts to meet the needs of many regions; it took a regional approach. Technology began to soar and online ordering systems became popular and now a necessity, changing the way business is done. Rather than stopping at how it’s ordered so the salesperson can get excited about his commission, or worry that he no longer will receive one; the company should focus on how it can lead innovation of the technology by offering more to its customer, such as REAL data that assists in decision making; helps consumers feel more informed, secure, and provides a means to share valuable information necessary to get a job done better and faster, more trusted, which in the end results in lower cost and happier humans. If it can expand its influence and focus on regulatory systems and other systems reliant or dependent upon its products or services, beyond the consumer, such as agencies, competitors, and the objects or humans it insures, it could then get one step closer to expanding its customer base — by seeing opportunity for new kinds of customers, and new services, that simple technology investments opened the door for.
A innovative insurance company invests in finding ways to eliminate the need for its service, by transforming the overall system that requires it, which is done through data, evidence, partnerships, reasonable and consistent pricing models, greed management, and ideals of ‘work functions’ being that of a salesperson, regional manager, or CEO of people working in a regulated industry.
Insurance companies that partner with auto-makers for accident avoidance investments in the design, with proof of prevention, are now able to invest in the right area; making the world a safer place, but if they have no insight into real data, the systems continue to operate as if ‘accidents will always happen’ and will cost a lot of money and that cost will only go up – when perhaps, that cost can be eliminated, or paid by another system of a new innovative design. If statistics are not updated and correct, and well understood by regulators, citizens, insurance brokers, and sellers, then we are paying for old data, unaware of change. The cycle continues, even though new technology proves roads are safer and accidents are less, because of several reasons, perhaps done many years ago, and not known because of the lack of ability to adjust legislation and regulation, or suggest the transformation of some companies to seek to eliminate the need for their service. There’s much doubt in this ideal, because it seems like a grand endeavor; counterproductive, loss of profit, but innovation ensures flow of money and greater value when a greater need can be met with a product that goes far beyond.
Be not profit minded; be change minded; and once the change has settled, be of high value and high impact ready to change yourself and become consumers and developers of high cost data with good reason or without reason and evidence as to where the money goes.
They must be innovative and smart in their designs, or acquisitions and sales; with minds to innovate and engineer and partner with technology companies, rather than to simply buy and use.