Companies Need Product Innovation
Companies need product innovation to grow and survive. In order to thrive in the globally competitive environment, companies have to be innovative. A company that does not innovate becomes a commodity. When your company becomes a commodity, your products are based on price. Lowering the prices leads to lower profit margins,leads to less likely to invest in keeping the product current. Revenue that declines over an extended period, needs explanations and solutions. In fact, a survey by McKinsey stated that 94% of the managers were dissatisfied with their company’s innovation performance.
Startups have the advantage in innovation. Startups have less bureaucracy than an existing company and are more agile. Larger businesses are slower and less able to adapt. SBA reports that small business contribute to at least half of the major industrial innovations in the United States. An innovative product must be unique and compelling to the consumer, to create a competitive advantage. Innovation that produces products that perform better, more reliable, add value, will get customers to spend more. Furthermore, companies need to continuously innovate or risk closing the business.