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In order to stay competitive, B2B brands must not only find where these internal hurdles are, but also make innovation a priority across the organization.
Fostering a Culture of Innovation Aligned with Business Goals
True innovation comes from reshaping the way your teams think, collaborate, and execute not from using the latest buzzwords or setting up a flashy “innovation lab”. To inspire innovation, start with your company’s mindset. However, while fostering creativity and agility is critical for competing with more agile startups, these efforts must support the larger purpose of your business–to drive growth, improve customer satisfaction, and keep your company competitive.
Encourage Experimentation and Calculated Risk-Taking
Startups thrive by learning from their failures and (re-)experimenting quickly. As a CMO, you can adopt a growth mindset that shows your team that you’re open to learning, experimenting, and pivoting. You could begin with small experiments or explore new opportunities like technologies, platforms, or marketing techniques, even if they don’t always result in immediate success. In fact, 60% of innovative companies actively encourage employees to experiment with new ideas. By focusing on small, manageable experiments, your teams can keep innovation on the table and quickly determine what works and what doesn’t with minimal risk. Encouraging experimentation can result in tangible successes as well: 80% of companies say that a growth mindset directly drives profits.
Empower Teams with Autonomy
Even though established B2B brands typically have more bureaucracy than startup companies, lengthy approval processes can stall innovation. To help your teams stay competitive, flatten the decision-making structures to give them the power to make decisions and act quickly. In fact, companies with decentralized decision-making are 40% more likely to act quickly on emerging trends. You can also encourage cross-functional collaboration between marketing, sales, product development, and IT from the beginning. Innovation rarely happens in isolation, so breaking down silos can ensure that the innovation is creative, executable, and aligned with business objectives. To speed up ideation and execution, 64% of highly innovative companies have strong cross-department collaboration.
Streamline Processes and Cut Red Tape
Even though established companies often have processes designed for consistency and scale, these same processes can slow innovation. The goal isn’t to scrape them, but rather to streamline them where possible. Agile methodologies, which are often used in software development, can be used by marketing and product teams as well to allow for iterative work cycles, continuous feedback, and faster delivery. Organizations that adopt agile practices typically see 20-30% increase in productivity. Some large companies are even creating what’s called “innovation incubators” within their organizations which gives more freedom to explore new ideas, with fewer bureaucratic hurdles, and access to the resources of a more established company.
Recognize and Reward Innovation
When their efforts are acknowledged and rewarded, people feel more inclined to continue producing. In other words, the wheels of innovation keep turning in environments where new ideas are celebrated and rewarded. Companies that reward innovation see a 20% increase in the number of new ideas presented by their employees. As a CMO, you can incentivize creativity through internal competitions or challenges where employees can pitch innovative solutions. Additionally, when a new initiative or product succeeds, be sure to make it known across the company to celebrate and acknowledge success.
Provide the Tools and Resources for Innovation
For your teams to innovate, they need the right tools, resources, and technology. Outdated systems and processes are the enemy of creativity and speed which makes it harder to compete with more agile startups. As CMO, champion investments in modern technologies, from automation tools to data analytics platforms to AI-powered personalization engines, to help your teams work smarter and faster and deliver more innovative, personalized customer experiences. 53% of companies that invest in innovative tech see faster growth than their competitors. Some companies, like Google, give employees a percentage of their time to work on passion projects which can lead to game-changing innovations.
Positioning Your Brand as Forward-Thinking
For established B2B companies, positioning yourself as innovative can help differentiate you in a crowded market and build stronger relationships with clients who value innovation.
Develop a Narrative of Innovation
Your brand’s narrative should include where you’ve been in the past, what your core values are, and where you’re going in the future. By highlighting future-focused initiatives, whether you’re investing in new technology, launching a bold product line, or collaborating with others, make sure these stories are clear in your communications. When you let people in on your long-term vision, you’re thinking ahead because 82% of buyers want to engage with brands that are transparent about their future plans.
Leverage Thought Leadership to Build Credibility
Effective thought leadership positions your company as the expert on what’s coming next in your industry. Publish authoritative content to showcase your brand’s expertise or host webinars or events that give you a platform to share your perspective on the future of your industry. 47% of B2B buyers report that thought leadership directly led them to purchase from a brand.
Showcase Customer Success Stories
One of the most effective ways to demonstrate your innovation is by highlighting the impact it’s had on your customers. Success stories are a powerful way to show that your company isn’t only talking about innovation, you’re delivering real results. Case studies should emphasize how your innovative products or services have helped clients achieve their goals or solved real-world challenges. Through these stories and testimonials of people who have benefited from your innovations, your customers can become your advocates and add authenticity to your brand story.
Partner with Innovators
Whether it’s startups, technology providers, or research institutions, aligning your brand through collaborations and partnerships with other forward-thinking companies can bolster your reputation as an innovator. Consider partnering with startups or innovative technology firms to co-create products, solutions, or services. These types of partnerships have increased innovation output for 54% of B2B companies. Additionally, you can invest in innovation ecosystems–accelerators, incubators, or industry-specific innovation hubs–where you can tap into new ideas and technologies. The relationships built here can lead to collaborative projects.
Be Visible Where Innovation Matters
In order for your brand to be visible in spaces where innovation is happening, you need to participate in industry conferences, and networking events, and stay active in online communities. Make sure, too, that your company has a voice at these conferences or summits, particularly ones that focus on the latest trends and future developments. Social media platforms, like LinkedIn, are another valuable tool through which you can make your brand visible. From thought-provoking articles to updates on your latest initiatives, social media is a prime space to connect with an audience that’s enthusiastic about innovation.
Aligning Innovation with Business Goals
Define Clear Innovation Objectives
If your innovation efforts are not clearly rooted in defined goals, they can become disjointed and ultimately a waste of time and resources. Ask: What problem are we trying to solve? How will this innovation contribute to revenue, market share, or customer satisfaction? And then, link your innovation to growth metrics, like increasing customer retention, new market expansion, or bolstered revenue. While startups may have more agility, established B2B brands can leverage their resources to create innovations that stand the test of time, especially if innovation is linked to clear objectives.
Ensure Customer-Centric Innovation
While it’s easy to become excited about a new technology or product idea, if it doesn’t meet a real customer need, it won’t drive real results. In this way, the best innovations come from listening to your customers so that every new product, service, or initiative directly enhances the customer experience. You can conduct surveys, interviews, or even focus groups to better understand your customer’s pain points and desires. Customer-centric innovation isn’t simply about new products, though; it’s also about how you deliver them to the customers. Use data analytics and customer segmentation to create more personalized, tailored experiences that resonate with your base.
Balance Innovation and Risk Management
While innovation inherently requires some risk, not every risk is worth taking. As established B2B brands, you have more to lose than a startup, so it’s important to balance bold initiatives with risk management. But being smart doesn’t mean being slow. Just like with your financial investments, diversify your innovation efforts–some will be high-risk, high-reward, while others will be safer, more stable bets. This mix allows you to explore potentially groundbreaking ideas while maintaining steady progress. But, be sure to keep an eye on industry trends, competitor actions, and emerging technologies in order to help you avoid risky projects that may not have a market fit and have the wherewithal to pivot if necessary.
Measure Innovation Performance
Without measurement, it’s impossible to know if your innovation efforts are paying off. Whether it’s the number of new products lauded, the percentage of revenue from new offerings, or customer satisfaction scores, tracking the right key performance indicators (KPIs) ensures you’re investing in the right areas and delivering value for your business. In order to keep the innovation wheels turning, use customer and internal feedback loops to refine and improve your initiatives. Agile teams that implement continuous feedback loops see up to 35% faster time to market./www.ibm.com/think/topics/internet-of-things”>Internet of Things (IoT), the network of devices with sensors, processing capabilities, and software that connect and exchange data, has revolutionized garage door opener technology through smart technology integration, advanced safety features, and enhanced security and convenience.