In an increasingly competitive and dynamic business environment, midsize companies face constant challenges to maintain and grow their market share profitably.
Innovation has become a key element to drive growth and sustainability in this type of organizations.
Below, we will share some innovative strategies that can help drive growth in these types of companies.
Product or Service Development
One of the most effective strategies to boost growth in companies is to identify unmet needs in their market and create unique solutions validated by their customers, by delivering value to them in their consumption process or use of the features of the product or service offered.
Medium-sized companies, taking advantage of their greater degree of flexibility and ability to maneuver to make quick decisions, can perform development tests in shorter time cycles and launch new products or services more efficiently than large corporations.
A notable example of this strategy was seen in the early days of Tesla in 2004, which revolutionized the automotive industry with its high-performance electric vehicles in a relatively short time.
The above requires having a deep understanding of the needs, desires and problems of customers, to develop products and services that resolve their frictions and generate benefits by satisfying their expectations. Medium-sized companies can take advantage of this understanding of their customers by implementing data capture mechanisms through surveys and interviews, in-person or digital, focus groups and direct observation, which, when processing this data, transforms it into valuable information as an input for development of innovative products and services.
Collaboration with Startups and Entrepreneurs
Another strategy to boost growth in medium-sized companies is collaboration with startups and entrepreneurs. Indeed, these emerging startups are often at the forefront of innovation and can offer disruptive solutions that could benefit medium-sized companies by providing access to new technologies, fresh ideas and new business models.
An example of this strategy was the partnership in 2017 between the Target retail chain and the startup Casper, which makes online mattresses. Target leveraged Casper's e-commerce expertise and disruptive approach to expand its product offerings and reach new market segments.
Implementation of Advanced and Digital Technologies
The implementation of advanced technologies is key to driving growth in medium-sized companies. This includes the adoption of tools such as artificial intelligence, internet of things (IoT), big data, advanced data analysis, process automation, cloud computing that offer endless possibilities to innovate business models, processes and products.
For example, mid-sized logistics company Flexport uses advanced technology to optimize its transportation and logistics operations through the use of optimization algorithms and predictive analytics. Flexport is able to offer more efficient and profitable services to its clients, which has contributed significantly to its growth and success in its industry.
Human talent
It is the most important asset to drive innovation. Midsize businesses must invest in training, developing and retaining talented and creative employees. Encouraging continuous learning, offering opportunities for professional growth and creating an attractive work environment are key to attracting and retaining innovative talent.
Practical tips
It is important to keep in mind that there is no one-size-fits-all solution for all companies, and it is crucial to adapt these strategies to the specific needs and circumstances of each organization.
To successfully implement these strategies in innovation management in medium-sized companies, we recommend:
Promote a culture of innovation and continuous learning within the organization.
Establish strategic partnerships with startups, entrepreneurs and other innovative companies.
Invest in advanced technology and employee training.
Conduct a comprehensive analysis of the market and emerging trends to identify growth opportunities.
Regularly measure and evaluate the impact of innovation initiatives on business performance and adjust as necessary.
Create an innovation committee responsible for defining the innovation strategy, allocating resources and monitoring progress.
Protect intellectual property by obtaining patents, copyrights and other legal mechanisms.
Share best practices and lessons learned with industry icon companies or similar markets.
Bibliographic references
Anthony, S.D. (2011). The Persistence of the Innovator’s Dilemma. https://hbr.org/2011/11/why-does-the-innovators-dilemm
Christensen, C. (1997). The Innovator’s Dilemma. Harvard Business Review Press
Drucker, P. F. (2007). Innovation and Entrepreneurship.
Kim, W. C., & Mauborgne, R. (2004). Blue Ocean Strategy. Harvard Business Review Press
Moore, G. A. (1991 revised 2014). Crossing the Chasm. Harper Business
Ries, E. (2011). The Lean Startup Eric. Crown Publishing Group, Division of Random House Inc
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