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Innovation in business: a source of growth and wealth

February 11, 2022

Innovation in business: a source of growth and wealth

Synopsis
5 Minute Read

Many entrepreneurs wonder how to grow their business and generate value. Innovation and digital transformation are certainly the levers of choice to achieve these objectives.

Innovation is integrated into the corporate philosophy now more than ever. A recent survey[1] reveals that 80 percent of Canadian organizations said they used innovative practices and strategies between 2017 and 2019. Of these, nearly 53 percent introduced product or service innovations, while about 73 percent relied more on business process innovations.

And it’s worth it because it saves you a bundle! Nearly 40 percent of companies that deployed innovative business processes reported savings on the production of goods or services, and about 32 percent on their support activities.

While the virtues of innovation are no longer in question, it’s not easy to implement. The same survey indicates that half of Canadian organizations report barriers to innovation. Of this number, nearly 30 percent mention a lack of skills, while 30 percent claim that uncertainty and risk are barriers.

Moreover, larger businesses (250 or more employees) are more likely to be innovative (nearly 86 percent) than businesses with fewer than 100 employees (79 percent). Finally, Quebec is not in a good position for its proportion of innovative companies, with a rate of about 78 percent compared to the champion province in Canada, Ontario, which comes out on top with over 83 percent.

Maximizing your strengths

In addition to the potential financial benefits, innovation enables you to stay ahead of the competition. If we aren’t moving forward, we’re moving backward and will be outdone by those who innovate! Innovation is both a protection and a growth driver. To maintain your competitive position, innovation must also become a genuine corporate value, a systematic process that keeps your company agile.

But in concrete terms, what processes should be implemented? I have acquired extensive expertise in this field with large organizations and have transferred my knowledge to small and medium-sized businesses (SMB) and accompanied many entrepreneurs on this journey.

In the field, I have seen that this can take different forms. For example, it’s possible to rely on research and development to create an innovative product, ahead of the competition. You can also use digital transformation to make your goods or services shine on platforms, or automate certain recurring tasks to save time and increase efficiency. So, either you decrease expenses or increase revenues.

At the same time, you could also reduce your dependence on labour, which in this period of labour shortages is a definite asset.

Nevertheless, it’s not always possible or even desirable to apply the same recipe to everyone. Transformation starts with a need for innovation and that need varies from one company to another. Essentially, it’s about maximizing your strengths by using them differently, not necessarily reinventing yourself from scratch.

The idea is to build on your strengths by linking them to opportunities to create value. For example, a nail manufacturer that developed steel coating products demonstrates innovation by building on expertise it already had.

To support our clients in their innovation and transformation process, we at MNP rely on two key sources of information: financial statements, but also the entrepreneurs and their teams themselves. We have a conversation with them to help them get to the next level. We listen to their vision, dreams, and values. It’s also important to avoid trying to do it all at once and focus on one thing at a time.

Our services go far beyond accounting. We’re entrepreneurs who work to support other entrepreneurs.

Contact

For more information, please contact Mario Lamontagne at 819.533.6151 or at [email protected].

Source

[1]  Survey of Innovation and Business Strategy, 2017 to 2019, Statistics Canada, 2021.

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