How Business Innovation Creates Economic Prosperity & Jobs
An innovative economy is vital for long term Australian prosperity
Prime Minister Malcolm Turnbull knew this when making the innovation agenda his first signature policy. So why has it failed?
Because he sent the wrong message
In the 2016 election, Mr Turnbull campaigned by appearing in places like advanced manufacturing centres & start-up hubs, talking up technology, & speaking of his commitment to research & science. This sent the wrong message. It tied innovation with costly new technology spending & costly new R&D programs that need long term commitment for risky returns. There was no perceived connection between spending & new jobs for ordinary Australians. His “Innovation” & “Jobs & Growth” catch phrases thus had no relationship, making them meaningless. It obscured the significance of innovation at a time when innovation is key to our future.
Innovation is simply doing something new to do something better
That’s what he needed to say.
By doing better, business can reinvest some of its benefits back into growth plans & jobs to support them. That’s what he needed to explain.
A commitment to support us to do something new & better. That’s what he needed to promise.
For business, doing something new to do something better is vital
It can be as practical, affordable & easy, or as outlandish, expensive & difficult as you like. It can be primitive or involve complex technologies. It can be obvious. It can be completely outside of the box. So long as it is practical, achieved on time & on budget, & brings meaningful advantage, benefit or opportunity, it is a good innovation. It all depends on your mindset, your willingness to explore new territory, & your ability to design something that’s achievable.
Innovation is wide open to interpretation, but it creates a creative way of thinking & designing. A few examples of fertile grounds for innovation are in sales models, branding, marketing, production, manufacturing, business process, customer support, logistics, & service delivery.
Innovation does not have to be about technology, but it is a great place to start
Technology is arguably the best resource for innovation. There are reasons for this, & their sum is far greater than their parts. There are a new wave of technologies disrupting enterprise & operations. Those technologies are converging & will unify enterprise with operations, & expand scope for product & service innovation as well. That convergence will be a force multiplier, enabling even greater opportunities for further innovation.
An example is in a new smart factory application
Technology connects the plant floor with manufacturing execution systems & efficiencies produce savings to keep the plant competitive & profitable. Now the plant is in a stronger position. Some profits are reinvested in engineering for future expansion & technologies for connecting with the enterprise. Some jobs are created & now a strategy for the future is in play. When the enterprise is connected, organisational efficiencies produce further savings, making the business even more competitive & profitable. The now connected smart factory & smart enterprise have the infrastructure to analyse & identify further ways to innovate. Reinvestment in new improvement projects start again, creating more jobs, savings, & another strategy for the future.
The continuous cycle of innovation is vital for long term business
This is because it maintains competitiveness, creates benefits, advantage, & opportunities. Once profit is realised, reinvestment sustains the next innovation cycle, which produces the next opportunity. And on it goes. But it all comes down to doing something new, to do something better. What new things are you doing to improve your business?
Please leave a comment to start the discussion, or contact ILeadIn at www.ileadin.com.au/contact/#start, to find out how you can kick start innovation in your organisation.