In uncertain times, entrepreneurs can find plenty of opportunities to innovate through technology. But they should too Reinforce their commitment to deliver value to customers.
Although it is clear that using new technologies is important to maintain a competitive advantage, it is necessary that, at the same time, these changes bring value to customers. It is not enough to encourage innovation, You need to promote the value your business offers to stay ahead of the competition.
What does innovation mean?
It is common for companies to confuse innovation with creating something new. This concept is not wrong, but it is not specific enough. Innovation is critical to growth, but many companies fail to implement it. You should encourage people to find new ways of doing things. But for innovation to be of any use, it must create additional value for customers.
FOMO, or Fear of Missing Out, is a term commonly used to describe the hype that startups create around their fundraising processes. Still, it can also translate the impact of trending technologies on business decisions.
Many startups or companies hop on trending technologies like blockchain without understanding how that decision will ultimately create customer value.
Instead, innovation often stems from very unsexy work that targets day-to-day disabilities. Recognizing bottlenecks and incorporating a mindset of continuous improvement is what makes innovation truly effective. Changing things that don’t make sense will result in an improved experience for your customer.
What is creating value for customers?
Innovation done well should always create value for customers. Furthermore, It should create value for both your business and the customers you serve.
Technology can dramatically improve people’s lives, especially in Latin America. Edtechs, fintechs, logtechs, and other types of startups can promote social mobility in ways we’ve never seen before. And if your startup manages to change people’s lives, you’ll likely keep those customers. Thus creating additional value can act as a critical tool for business survival.
When looking for ways to innovate, don’t take the technology you want to use as a starting point. Instead, start with the problem. And hopefully, this will be a problem you’ve had yourself, so you’re 100% sure it exists. Worse than not innovating is investing money in solutions to non-problems.
Innovation through technology must make sense for your customers and your business model. Don’t embed a product just because you want to make your storytelling sexy. Countless genuinely innovative products and services failed because no one was willing to pay for them.
in other words, If technology is not used, the problem will not be solved. Avoid this by talking to your customers to understand their needs instead of pushing products.
Also, to create continuous value for customers, you need to iterate your services or products: As mentioned earlier, you need a mindset of continuous improvement. Conditions change, so your product-market fit will never be perfectIt should be updated continuously.
A famous case of a new invention by Silicon Valley startup Juicero gone horribly wrong. The company raised $120M from investors like Google Ventures and was even featured in the New York Times. The company sold juice boxes and a USD $400 press machine was the only way to squeeze juice. The startup claims the machine uses four tons of force, but Bloomberg News reports that a person can squeeze the juice with just their hands. In this case, A startup created a very expensive solution to a problem that didn’t exist in the first place.
There are no simple answers to the best ways to innovate through technology. It all comes down to, though How much value are you creating? It’s easy to get carried away by the excitement of incorporating new technologies into your processes, but don’t innovate just for the sake of it.
When changes are placed correctly, Digitally transforming existing products or services or creating new ones can be a huge value driver. Clarity and simplicity in approaching conversion processes will help the business stay aligned with the end goal: Creating long-term, life-changing value for your customers.