‘Innovation is a commercialised business idea’

A friend of mine is always bubbling with ideas whenever I speak with him.
My friend has even gone a step further and tried to implement some of his ideas. Now, does my friend qualify to be described as innovative?
An innovation is an idea that has been commercialised. To put it another way, an innovation is an idea that is making money.
Innovation can be beneficial to a business through different channels such as increased sales, improved customer retention, reduced costs and market expansion. Innovation can occur at different levels in a business.

Business model innovation
Business model innovation is about changing the way busi ness is done to increase customer value.
Recently I was conducting a business training and during the health break, one participant walked out to pick a package that had a snack she had ordered through a mobile phone application.
To me it was like food had been literally delivered through her phone.
I am told that the people who operate this food delivery business do not even own a restaurant and yet they are able to sell meals to customers.

Marketing innovation
Marketing innovation has to do with development of new marketing methods in the areas of: Improvement in product design or packaging, improvement in production and improvement in pricing.
We can all take a lesson from Mukwano Groupof Companies.
Although they are a big company, Mukwano packages its products so that they are affordable by most households.

Process innovation
This is the traditional area of innovation that I learnt about at university but is still relevant.
It is concerned with the implementation of a new or significantly improved production or delivery methods.
One time I gave a talk to the management of a hospital in Kampala where I described the complex process a patient goes through.
For example, from the time of arrival at the outpatients’ ward till the time of getting treatment, a patient would go to the cashier three times.
First time queue to pay to see the doctor; second time queue to pay for laboratory tests; third time queue to pay for treatment.
The hospital could apply process innovation to reduce the time patients take from arrival to getting treatment by reducing the number of times they queue at the cashier’s window.

Product or service innovation
Product or service innovation occurs when a business introduces either a new or a substantially improved product or service.
Every year the big technology companies introduce new versions of their software and hardware.
Kampala City is overripe for public transport product innovation; to replace the 14-seater taxis with buses and encourage three wheelers instead of the bodabodas.
Whether your business is new or old, small or big you will need to innovate in order to survive and thrive.
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James Abola is a business and money coach and consultant. Email: [email protected]