Before launching any business venture, a manager should conduct robust research on all aspects of the new line, good, or service using a team serving as a dedicated innovation center.
When in research mode, it is important to dive into any reports, statistics, and data that are available that might help predict the success of a particular move or investment. Knowing the playing field before hopping in allows a company to plan for and avoid hurdles and build a successful operations. Research is therefore a huge factor in the business management of basically any company in any industry.
It is this very research that allows innovation to exist and flourish. Companies today have to stay on the innovation ball to compete for customers in a rapidly changing world. Newer and better versions of services are constantly being introduced. The firms that demonstrate a comfort with change and improvement will win the day. Thankfully, data analytics makes it easier than ever to innovate services in a profitable way. You can integrate analytics into your innovation in several ways; we outline a few of these below.
Making analytics your innovation center
1. Sells product quality to a skeptical audience
It’s true that humans tend to be skeptical of new ideas, at least initially. There is a natural defensive mechanism that shields away new concepts and services that can stand in the way of new innovative ventures. However, using data analysis, a company can sell its product by appealing to the proven outcomes. The use of actual statistics and analysis can help ease markets into an innovative product by giving it an air of credibility.
2. Gives you a competitive advantage:
Data analytics is not only limited to one’s own business. It can also be used to assess available statistics about the current market trends to develop a product and promotional strategy. Careful analysis of these stats gives you an advantage over competitors. We’ll talk more about the use of analytics in product development below, as we delve into internal uses.
1. Aides in product development:
During the early stages of product development, data analytics helps in various ways. One is by identifying performance gaps in the status quo, pointing to possible innovation avenues that can improve upon the service. This kind of information is sometimes obvious, but often it needs data analytics support to fully figure out. Analytics mostly supports innovations that make processes quicker and more convenient. It also helps predict profitability of innovations and the practicality of developing and implementing new features. Once a new product is introduced, analytics helps managers evaluate the success and outcomes to refine as needed.
2. Supports not only product design, but process and internal workflows too
Internal workflows and organizational matters can always benefit from objective analysis. Subject matter experts are always the closest to the ground, but this can both increase and hinder their ability to assess the efficiency of operations. On one hand, they understand the nuances of the process. On the other, they are so accustomed to the status quo, they may lack, willingly or otherwise, creative or innovative impulses. Using an objective data analysis, a manager can jumpstart a creative redesign of a possibly inefficient process or workflow. These innovations can touch any aspect of a business, from design, packaging, and logistics to customer services and sales. These changes can reduce costs and boost up profitability.
Data analytics plays a role in every stage of the innovation process. From internal organizational change to marketing and promotion, managers rely on their data analysts to develop products and strategy. If innovation is the way of the future, data analytics is the tool that all companies can harness to get there.