Innovation as a source of business opportunities!

Many startups and companies struggle to turn their innovation projects into commercial successes.
The purpose of this article is therefore to outline what we believe to be the fundamentals of innovation, in order to assist those who are seeking guidance on best practices for successfully implementing an innovation project.

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A definition of innovation

We felt it was important to revisit the definition of innovation as we approach it in the context of our clients’ projects.
For example, when searching online, one often encounters confusion regarding its definition. Innovation is frequently equated with invention, as it is commonly reduced to merely a solution to a problem. But this is the definition of an invention, not of innovation.
Both start with a problem, a “pain point,” and an intelligent solution in response to it. We will return to this topic soon in an article explaining what the concept of a pain point means in more concrete terms.

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But for us, the fundamental difference lies in the fact that innovation leads to a commercial outcome. It can therefore be defined in three points:

• Identify the problem
• Find a solution
• Start a business

For more information, check out our series on the innovation pyramid.

The goal is to provide a solution to a problem that will resonate with the market, thereby generating business in that market.

Start a profitable business

An innovation project should be viewed as the creation of a profitable,innovative business.
Let’s take the example of digital transformation, a topic that is very much in the news right now:

• either the company digitizes its business at all costs (driven by a “fad”),
• either it views digital tools as a means of solving a pressing problem andimproving the company’s performance

And it is, of course, this last point that represents the right approach. Digital transformation is by no means an end in itself; it is a means to an end—an economically effective solution to an identified problem.
As we’ve already mentioned when discussing the innovation pyramid in our article“How to Make Your Innovation Project a Success Like No Other!”, companies must start with pain points (their own and those of their customers) and view digital tools as a means to resolve them.

For while it may not always be apparent in publications on this topic, digital transformation is, above all, an innovation initiative. The emergence of digital solutions has provided a vast array of tools—which are only meaningful if they address identified pain points. The goal is to improve business performance, generate profitability, and thereby increase the company’s margin by reducing costs:
Problem → Solution → Business

Focus on Innovation in Large Companies

Large corporations need to regain the agility of a startup to successfully carry out their innovation projects. Of course, the environment and resources are different, but the project must be approached and structured like a startup, with the same pace and the same energy. In any case, this is an innovation project, which means creating a profitable business.

Beyond the technical and domain expertise that is often present in project teams, we sometimes observe a gap not only in agility but also in the skills within the project team. Let’s revisit the three key elements that define innovation (Problem, Solution, Business): the business development aspect is, of course, key to successfully bringing an innovation to market.

Ultimately, the market is the ultimate arbiter

No matter what project you’re looking to develop, test your business model or solution hypotheses. Reach out to customers and test your solutions in your target market using prototypes—particularly through digital tools such as landing pages.

By using these prototypes, you’ll keep costs down because you’ll be selling your solution before you’ve even developed it. Take a frugal approach and don’t spend too much time validating your assumptions. We’ll have the opportunity to explore this topic further in an upcoming article.
Whether you’re in a corporate setting or at a hackathon, you need to step out of meetings and face the reality on the ground. You absolutely must validate each of your fundamental assumptions because the market will always be the ultimate judge.

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