5 Innovative Solutions for Business Recovery
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Published:
April 20, 2023
Reading Time:
7 minutes
A few centuries ago, humans were still traveling on horse carts. They thought that it was the best way to travel. In fact, it was a bit of a status symbol back then. Then, Henry Ford stepped in with his innovative idea and transformed the way we all think. A big thanks to him, and other inventors, now we can all travel comfortably in cars.
But innovation is not always about creating comfort. Sometimes, it’s a necessity to ensure survival. Especially during unprecedented events like the pandemic. The year 2020 tested all of us at once, including business owners. However, the businesses that innovated survived.
Take Uber as an example. Because of lockdowns, the vast majority of the population wasn’t even allowed to leave the house, let alone catch an Uber. So, Uber innovated and came up with a prescription medication delivery service as an addition to its Uber Eats food delivery service. As a result, Uber’s U.S. and Canada revenue reached $10.1 billion in 2021—in the middle of the pandemic. Amazing, isn’t it?
In this article, we will discuss why innovation is so important in business and how to use innovation to take your business to the next level. So, let’s dive into it.
But innovation is not always about creating comfort. Sometimes, it’s a necessity to ensure survival. Especially during unprecedented events like the pandemic. The year 2020 tested all of us at once, including business owners. However, the businesses that innovated survived.
Take Uber as an example. Because of lockdowns, the vast majority of the population wasn’t even allowed to leave the house, let alone catch an Uber. So, Uber innovated and came up with a prescription medication delivery service as an addition to its Uber Eats food delivery service. As a result, Uber’s U.S. and Canada revenue reached $10.1 billion in 2021—in the middle of the pandemic. Amazing, isn’t it?
In this article, we will discuss why innovation is so important in business and how to use innovation to take your business to the next level. So, let’s dive into it.
Why Innovation Is Important in Business
The pandemic made one thing very clear: innovation in business is key to its survival. The companies that were proactive enough to innovate and pivot their operations had a relatively easier time navigating the pandemic. Even though the situation wasn’t ideal, innovation helped them stay afloat.
As a business owner, you must also have a positive mindset and believe that innovation will work. According to a survey by McKinsey (see Exhibit 2), nearly 3 out of 4 executives are confident that the pandemic brings with it big growth opportunities. You see, these executives seem to have one thing in common: they are innovators. They believe that no matter what happens in the market, they can innovate and come up with a solution.
That said, here are some other ways how innovation in business helps:
As a business owner, you must also have a positive mindset and believe that innovation will work. According to a survey by McKinsey (see Exhibit 2), nearly 3 out of 4 executives are confident that the pandemic brings with it big growth opportunities. You see, these executives seem to have one thing in common: they are innovators. They believe that no matter what happens in the market, they can innovate and come up with a solution.
That said, here are some other ways how innovation in business helps:
- Efficiency: Innovation in business can give rise to the creation of new processes and operations that could make a business way more efficient than before.
- Competitive advantage: The business that is first to innovate has the “first mover” advantage in the market. That success is hard to imitate by competitors.
- Cost reduction: Innovation can help you come up with new ideas to cut production and business running costs. You could increase your revenue simply by thinking outside the box.
- Growth opportunities: Needless to say, innovation creates growth opportunities when your business is stagnant. In fact, innovation may be the only way to get out of stagnation.
KEY TAKEAWAYS
- Innovation is critical to business survival and growth during unprecedented events such as the pandemic.
5 Innovative Solutions for Post-pandemic Business Recovery
Now that you know why innovation in business is key to its success and continual growth, let’s discuss 5 innovative solutions for business recovery after unprecedented events, like the pandemic.
The World Economic Forum predicts that digital transformation is going to be a game-changer for the world economy, adding a whopping $100 trillion to the economy by 2025. That means that the way we interact with each other and businesses through digital platforms is going to play a huge role in this incredible growth.
Some companies have already used this digital way of innovation to gain profits. Take Peloton as an example. This company successfully incorporated digital transformation during the pandemic by introducing home workout equipment and online classes. This is a classic example of diversification, and we can all take inspiration from it. According to CNN, the company’s revenue increased by 172% due to this innovation.
So, what are you waiting for? If you need help getting started with digital transformation, you should straight up get in touch with a digital transformation consultant. These consultants can point you in the right direction from the get-go and turn your digital transformation vision into a reality.
1. Leverage digital transformation
When it comes to innovation in business, digital transformation seems to be at the forefront. Even though the pandemic roughed up many businesses worldwide, it has also accelerated the adoption of digital technologies across industries, which is actually very fascinating.The World Economic Forum predicts that digital transformation is going to be a game-changer for the world economy, adding a whopping $100 trillion to the economy by 2025. That means that the way we interact with each other and businesses through digital platforms is going to play a huge role in this incredible growth.
Some companies have already used this digital way of innovation to gain profits. Take Peloton as an example. This company successfully incorporated digital transformation during the pandemic by introducing home workout equipment and online classes. This is a classic example of diversification, and we can all take inspiration from it. According to CNN, the company’s revenue increased by 172% due to this innovation.
So, what are you waiting for? If you need help getting started with digital transformation, you should straight up get in touch with a digital transformation consultant. These consultants can point you in the right direction from the get-go and turn your digital transformation vision into a reality.
2. Improve customer experience
You can also introduce innovative ways to put the customer at the center of everything in business. It's all about understanding their needs and preferences and creating products and services that meet those needs.
According to a survey by Dimension Data, 81% of organizations see customer experience (CX) as a key differentiator in their industry. That means businesses are really starting to see the value in putting their customers first, and that's something to celebrate. In fact, the top reason why companies are undergoing digital transformation is to improve customer experience, driven by customer demands for digital experiences.
What’s more, companies that have invested in improving their customer experience have seen some noteworthy benefits. These include increased customer loyalty—92% of businesses reported this as a result of enhancing customer experience. Also, the survey shows an uplift in revenue for 84% of companies and cost savings for 79%.
According to a survey by Dimension Data, 81% of organizations see customer experience (CX) as a key differentiator in their industry. That means businesses are really starting to see the value in putting their customers first, and that's something to celebrate. In fact, the top reason why companies are undergoing digital transformation is to improve customer experience, driven by customer demands for digital experiences.
What’s more, companies that have invested in improving their customer experience have seen some noteworthy benefits. These include increased customer loyalty—92% of businesses reported this as a result of enhancing customer experience. Also, the survey shows an uplift in revenue for 84% of companies and cost savings for 79%.
3. Diversify revenue streams
Why sell just one product when you can sell ten? Why have only one source of revenue when you can have many? You should scour through the business world and explore new markets and revenue streams whenever possible.Take Chipotle as an example. This famous food chain successfully diversified its revenue streams during lockdowns. How did they do it? Well, in addition to offering its traditional menu items, Chipotle started selling meal kits and ingredients to customers who wanted to cook their own meals at home. This move helped the company generate additional revenue and reach new customers who were looking for convenient meal options.
If you need help with portfolio diversification, the expert consultants at Consultport are here to help you. With our consultants’ strategic guidance, you can increase the market exposure of your business operations and make it less vulnerable to economic and market risks, like the pandemic. Plus, with the support of Consultport, you can feel confident that you're getting the best, pre-vetted, and highly experienced consultants. We only choose the best of the best.
4. Make supply chains more resilient
We all know that the pandemic caused some serious disruptions in global supply chains, but the good news is that we can prepare ourselves for the future and build more resilient supply chains. And how can we do that?Well, these are some key ways to build a more resilient supply chain and prepare for future disruptions. First, by diversifying your suppliers, you can ensure that you have backup options if one supplier falls through. Secondly, investing in technology can help you track your products and shipments in real time, so you always know what's going on and can respond quickly if there's a problem. According to PwC, supply chain resilience is becoming increasingly important for businesses, with 47% of businesses using control towers to implement almost real-time visibility of supply chain execution.
Once again, you can hire consultants, in this case, supply chain experts, to solve your company's critical supply chain challenges. From supply chain strategy to JIT inventory management and beyond, Consultport has a pool of talented experts ready to help you optimize your supply chains and stay ahead of the competition.
5. Use remote talent to achieve maximum results
The pandemic has forced many businesses to rethink their traditional business models. The companies that never allowed their employees to work from home had no choice but to do so. The businesses that never thought they’d deliver their services digitally had to adapt to the new normal. But hey, ultimately, it worked! And that’s all that matters now.It’s no secret that workers are favoring remote working. But what’s in it for businesses? Well, according to research, businesses can save an average of $11,000 per year per employee by embracing remote work, while also increasing productivity by up to 43%. What’s more, remote work can provide significant cost savings for businesses. By having a remote team, businesses can save on rent and utilities for office space, relocation costs for key employees, cleaning services, security costs, and food costs. Take Zapier as an example, a software company that adopted a fully remote work model in 2013. The company has seen impressive growth, with a revenue of $140 million in 2021. Imagine how much money they saved by not renting fancy offices and paying for maintenance.
Conclusion
In conclusion, the COVID-19 pandemic has made one thing clear: innovation is crucial for business survival and growth. Remember the five innovative solutions that we discussed today: embrace digital transformation, enhance customer experience, explore new revenue streams, prioritize strong supply chains, and invest in remote talent. By implementing these solutions and having proper guidance from the right consultants, businesses can set themselves up for continual growth, even in difficult times.
