There is nearly always a better way - your challenge is to find it.
On this page:
Identifying opportunities for innovation
Encouraging innovation
Identifying opportunities for innovation
Examining issues from many different points of view and asking questions about business performance and profitability is a good way to identify opportunities for improvement.
To help identify alternative approaches and solutions, there are some questions you can ask yourself about a product or service you offer in the marketplace.
How can I make it:
- safer
- cleaner
- slower or faster
- more convenient to use
- easier to package, store or transport
- less expensive to replace, repair or re-use
- easier to clean or maintain
- less noisy
- more attractive and appealing?
How can I:
- add new features
- improve its design
- reduce labour costs
- minimise the cost of materials
- improve its availability or distribution
- improve its promotion?
Be aware that not every question applies to all situations. Other questions may need to be added or tailored to your specific business circumstances.
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Encouraging innovation
You and some of your employees may be creative people with a natural flair and drive to introduce and use new things. Unfortunately, this is often not enough and sustained efforts to innovate need to be planned, supported and rewarded.
Tips for fostering an innovative culture
| Action | Tips |
Provide top-down support. |
- Indicate that, as business owner, you expect innovation.
- Be vigilant for any move to overlook good ideas.
|
Reduce resistance to change. |
- Foster a business culture that supports risk-taking and questioning.
- Identify and make the need for change well-known throughout the business.
- Involve employees in planning implementation of the change. This will create ownership.
- Have genuine regard for employees' concerns and likely resistance.
- Implement and monitor the effects of change.
|
Encourage improvements, no matter what form they may take, their size or impact. |
- Let it be known that ideas for minor change are welcome – many small innovations can have a positive cumulative effect on productivity and often carry less risk.
- Be prepared to listen to all suggestions and ideas put forward.
|
Link innovation approaches to your SWOT analysis from business planning. |
- Use identified opportunities to point the way to new products, services or markets.
- Develop solutions to minimise the impact of weaknesses.
|
Identify problems and creative ideas that will solve them. |
- Encourage an active awareness and recognition of problems as opportunities.
|
Encourage experimental attitudes and recognise and reward initiative. |
- Establish a business environment that experiments with new ideas rather than prejudging on rational grounds.
- Recognise contributions made by employees at all levels, whether adopted or not.
- Identify appropriate financial and non-financial rewards.
|
Tolerate failure. |
- Accept that time and resources will be invested in experimenting with new ideas that may not work.
- Avoid assigning blame and penalising employees.
|
Promote the role of champion. |
- Wherever possible, give the creator of the innovation the responsibility and authority for leading and co-ordinating its development.
|
Create an open structure for your business. |
- Encourage open channels of communication.
- Encourage people to be open-minded - many good ideas are lost because of early ridicule.
- Encourage contact with outside sources.
|
Follow up on ideas from customers and suppliers. |
- Talk over problems and issues with customers, with a view to sourcing new ideas and benefits.
- Talk to suppliers to help identify sources of complaints that can lead to improvements in operations.
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More information
On this site
Innovation support services
Steps to turn your idea into a business