Businesses who develop new products, services and processes, generally put themselves ahead of competitors and are in a better position to adapt to any changes in the needs/expectations of their customers. Those companies that fail to innovate, will undoubtedly suffer from poor operational and financial performance. At the same time, lack sustainability for long-term survival.
The notion of taking a pro-active approach towards innovation should ring especially true for start-ups. Especially, when only 15% of new companies go on to become profitable, according to statistics from the ‘Sussex Innovation Centre’.
Interested in strategy and development, TheKnowledgeAcademy.com analysed the latest findings from ‘The Federation of Small Businesses’, who surveyed UK’s small manufacturing companies to better understand their varying motivations for innovating.
Focusing on manufacturing, small enterprises within the industry, engage in innovation to benefit from efficiency and productivity gains (45%). Thereafter, manufacturing firms are encouraged to innovate, as they believe it will raise their turnover and accelerate growth prospects (39%). Whilst 34% do so, to increase the range of goods and/or services they can offer.
Strikingly, 24% think any innovation initiatives they carry out should enable them to gain access to more customers, as opposed to this, manufacturing companies are least likely to innovate in the hope that it can lead to worthwhile collaboration opportunities (three percent). Slightly above, just four percent innovate for the purpose of developing business rights and/or technology. Interestingly, ten percent feel obliged to innovate, purely to meet regularly requirements.
Furthermore, 71% of manufacturing start-ups claim to be ‘very or slightly aware’ of their competitors innovation efforts. Additionally, 78% state they are willing to experiment and take risks when trying to refresh their products/services/processes/strategies with new ideas/concepts.
Joseph Scott, a spokesperson from the TheKnowledgeAcademy.com, commented: “Every business, regardless of the sector they are in – faces a ton of challenges and pressures. Consequently, to stay ahead of the curve, firms need to make a consistent effort to assess and improve various aspects of their operations. One of the fundamental pillars behind this should be innovation. Businesses that take innovation seriously, can experience significant benefits.
“After all, innovation enables careful problem solving and generates effective solutions as to how companies can establish a distinctive competitive advantage. Similarly, provide more thought-out and flexible approaches towards meeting defined objectives over set periods of time – whether that be expanding products/services portfolio or generating greater profit margins.”