Improvements to Products, Processes, Services, and Customer Experience:

Businesses need to consider if:

• There will be sufficient improvements to existing products which will ultimately increase profits by reducing production costs or increasing prices.

• There is a demand for these improvements or if they are really necessary. For example, it would not be sensible to only manufacture combination microwave ovens and to neglect the need for basic microwave ovens, or believe there is no longer a demand for mobile phones without a built in camera.

Think of this as making things better. For instance, a company that adds new features to its software is improving its product.

Processes:

Processes can be too cumbersome or bureaucratic to be efficient and you may be bale to think of an example where you have found a process that has "got in the way". Overly bureaucratic processes are often blamed in the public sector leading to a duplication of work or delayed results.

Ultimately, such processes cost money to implement and so finding other ways to achieve the same result could benefit the business and it's customers.

Services and Customer Experience:

Business Growth: 

Business growth is an important consideration of innovation and enterprise. Businesses are looking to increase profits, market share and possibly strive to become a market leader. To grow, the business needs to find ways to move with the times to meet customer demand. Lego provided an example of business growth as a result of innovation and enterprise when they introduced a range linked to th elatest Jurassic Park film success.

It's like a small plant growing into a big tree. A bakery that starts selling its goods in more locations is experiencing growth.

Development of new and niche markets:

New and niche markets mean developing an entirely new product or an addition to a line of products. For example, Apple have introduced the iPhone, iPod and associated family of products to an existing line of products.

A new niche means a specialist market, for example organic or vegetarian food products. An example of a specified niche market is LoveThoseShoes which was set up by entrepreneur Glenys Berd. She introduced a range of healthy footwear in 2003 which was targeted at consumers with conditions such as arthritis and back pain.

Imagine finding new places to sell your things. If a clothing brand starts selling to athletes, they're targeting a new market.

Offering unique selling points:

USPs can benefit a business providing they are based on solid research which confirms demand. You may find it difficult to identify a unique product but there may be something about the product or service that is unique only to that one business.

A German man calling himself Professor Shoelace realised there were enormous numbers of children who struggled to tie their shoelaces. Numbers increase when they are due to start school and many parents of that generation grew up not wearing shoes that had laces. To address this need, he has written hugely successful books bringing fun and excitement into lacing methods and also developed an iPhone App.

While this example might be viewed as a niche market, the business has extended its range to include shoelaces to attract different agr groups, purposes and even promote charitable causes.

Some well know USPs include.

• Burger King and their promise to respond to customer changes in their fast food "have it your way"

• Avis cars offering customer pick up services

• John Lewis department store's slogan "never knowing undersold"

• Amazon-"Earth's biggest bookstore"

• BMW-"The ultimate driving machine"

Think of it as having something special that makes customers choose you. A restaurant offering a secret sauce no one else has is using a unique selling point.

Improved recognition and reputation:

Businesses seek the benefits of recognition and reputation and these can be achieved if customers have a good experience which they then promote to others, such as friends and family. Buisinesses need to be recognised and are prepared to invest large sums of money in rebranding if they believe the service or product they offer is not recognised clearly by the way it is promoted.

Imagine if everyone knows and respects your business. A charity known for helping the community has a good reputation. A company who donates to charities or helps support its local community will also develop a good reputation.

Branding:

The branding of a product or organisation can make or break a business and should represent what it is offering so that it is easily recognisable.

Smarter Working:

Smarter working involves businesses allowing their employees to work in different  locations. It uses technology to enable communication between employees. This can benefit businesses by:

• cutting costs

• speeding up production

• reducing customer waiting time

• increasing profits

• reducing unnecessary bureaucracy

• increasing staff motivation

This is like finding better ways to do things. If a factory uses robots to build cars, it's working smarter and will benefit in may ways.

To make strategic decisions requires considering the risks as well as the benefits. Some considerations are outlined below.

Failing to Meet Operational and Commercial Requirements:

Businesses have to comply with commercial requirements; these could be variable depending on the type of business, For example the construction industry (such as plumbing) will have to comply with specific legislation when working with gas. Therefore a business could not extend it's business by offering gas installations unless they have relevantly skilled and qualified gas engineers.

On a lesser but syill important scale, the decision not to go ahead with an idea might be due to interruption in the process which impacts on the quality of a product or service. An example could be where a shelf stacker is rushing to restock products by stacking the front of the shelf instead of moving old stock forward and putting new stock to the back of the shelves.

It's like building something that doesn't work as planned. If a new app crashes frequently, it's not meeting operational requirements.

Failing to Achieve a Return on Investment:

This is a massive risk associated with innovation and enterprise. Consider the research and development team working on a project for many years at significant cost which, at its outset, is cutting edge and innovative. However, by the time it is refined, tested and comes to market, the demand amy have been met by a competitor or an alternative product or service.

Clive sinclair is an example of an entrepreneur and inventor for whom some ideas never came to market. He is best known for his inventions of miniature pocket TVs. ZX80 and ZX81 computers and the C5 battery operated single-person car.

DeLorean's invention the DMC 12 car failed mainly due to cost, the time it took to produce and product quality. 

An invention which never came to market is the 1926 Ford "Flying Fivver" single seat plane.

Imagine spending money on something that doesn't make you more money. If a company invests heavily in a product that doesn't sell well, they might not get a return on investment.

Cultural Problems can prevent an idea or product coming to market.

Resistance to Change 

Some customers may stick to goods or services they have used before and be unwilling to make a change. Some staff may also be resistant to changes in their working practices. Samsung's introduction of a curved screen phone in 2013 has so far not been revolutionary nor has Microsoft's range of curved keyboards.

It's like having disagreements within a group. If employees don't want to change the way they work, there's resistance to change.

Unsupportive Systems and Processes

The distinction between the two is that the process represents a concept and the system is what actually occurs when carrying out the process. Therefore a process can get in the way of the system by being ineffective, for example if there is too much repitition for a system to be efficient. Another example is that of a telephone help service where the operator appears to read from a script rather thanrespond to the specific nature of a customer's enquiry.

Insufficient Support from Leadership and Management):

This might include financial support, time or additional resources and expertise to develop an idea or product. The majority of ideas do not receive sufficient support from management.

Example for Benefits:

Apple's iPhone Innovation: Apple's iPhones have improved over time, adding new features like better cameras and facial recognition.

New Market Development: Starbucks introduced cold coffee drinks in response to a new market trend, attracting customers who prefer chilled beverages.

Example for Risks:

Failed Innovation: Google introduced Google Glass, which faced resistance due to privacy concerns, leading to its discontinuation.

Cultural Problems: When Kodak didn't embrace digital photography, they faced challenges as the market shifted away from film cameras.

Remember, innovation and enterprise can bring great rewards, but they also come with risks. Businesses need to weigh these pros and cons when deciding to pursue new ideas and ventures.