How Businesses Can Minimize the Risk and Cost of Digital Innovation

Many strategies designed for digital innovation fails, just because the business trying to innovate unknowingly adopts transformative initiatives, which are not tested or proven. One can always achieve safe and cost-effective innovation by employing technical research and Poc development. Please read our entire article to know how.

We are now in the age where we are driven by technological progress and business environments are constantly changing in order to keep up with the latest advancement. Various successful business enterprises have proved that Digital Innovation is the most valuable asset to find your way further than the competition and to create a vast market for your brand. For Instance, by adopting IoT, blockchain, AR/VR, RPA and AI can further help you to upgrade your business to a next level and deliver a new solution to create unique selling points and gain a competitive edge.

If we gaze upon today’s competitive market then we all might think that staying ahead is challenging, however a very informative survey conducted by McKinsey Global found that 84% of professionals understand the importance of the innovation for future growth, yet only 6% of them are satisfied with their current strategies.

 We can’t argue on one fact that the innovation is extremely complex and risky and it effectively fails the business if the innovative process does not eventually contribute to the bottom line. There are various factors which can prove themselves as obstacles in the way of an innovative process, which includes:

Failure to establish goals

Once you begin with any innovative initiative, it is extremely important to measure the end goal. One can’t achieve success in digital innovation just by limitless or random imagination. One should always focus on a timeline driven by a goal and one should have a precise plan in mind before taking any actions. It really helps you to draw an outline of your strategy, once you are certain about the milestone you want to reach. Carefully decide the terms of your success and your expectation before you go ahead and shape your ideas.

Lack of market understanding

You have to properly analyze the market and research about the genuine demand of that particular product before you go ahead and produce, as creating products which no one wants can put you in extremely difficult situation and would be a very hard blow at your business. Hence one should always shape their innovative strategies as per the market trends and requirements.

Problems monetizing innovation

 Profits can be elusive, even if the new product or service is as per the market requirements, as an innovative products can be too expensive to bring it into practice or it can be too difficult to scale for a wider market beyond first adopters and market competitors are always present to quickly provide a copy or an alternative at much cheaper price. Further lack of insight and unplanned effort can also make your implementation extremely difficult.

Innovation always begins with a technological layer for both enterprise and SMBs. The company should always explore the boundaries of hardware and software technology before searching for a new application. It can be also challenging to find a starting point, however determining the technical feasibility of an innovative idea is altogether a different question.  

Research and study of technical feasibility begins with scoping and discovering the latest emerging technologies like AI, blockchain and machine teaching, it further helps the business to map technical possibilities. Then one should move forward to determine if the solutions are practical.

It really helps your business to come forward with innovative concepts, by employing feasible research and another key is to build a proof of concept alongside technical feasibility.
A business should always test whether a concept is marketable, what it will cost to implement and whether the revenue gained by that concept will cover all expenditures. Proof of a concept can be really helpful in testing market viability for some of the most complex ideas and this step is extremely important even if technical feasibility is already established.

A business should always tread lightly when it comes to innovation and always monitor the feedbacks carefully, before investing a large sum of money in their innovative ideas.

We all know that innovation is not possible without smart ideas; however even with brightest of ideas also fails to gain profitable revenue out of their innovation. Achieving success is all about gaining deep insight into latest technologies and that only helps you on your way to digital innovation, which also helps you to acquire broader considerations for your goal of innovative success.

Let’s discuss how VBK Technologies can assist you optimize your innovative strategy.