7 ways to fuel your company’s innovation engine

Innovation supercharges growth, creates or reinvents categories, forms new business models, and enhances productivity. But barriers to innovation abound, and many companies struggle to systematize innovation as an ongoing process.  

How can companies overcome roadblocks that inhibit innovation? The first step is understanding what innovation is—and is not.  

McKinsey defines innovation as “. . . the systematic practice of developing and marketing breakthrough products and services for adoption by consumers.” And its research shows that companies successful at mastering innovation are 2.4 times more profitable than others.  

The key is “systematic.” Innovation is not a one-and-done endeavor. It requires making sure that an innovative mindset is baked into your strategy and operating model.  

At Liquid I.V., we’re highly intentional about pursuing innovation. It may be the single most important factor in helping us become the No. 1 powdered hydration brand in America, fueling 4x growth in three years and paving the way for rapid international expansion.  

Every company innovates differently, but there are common traits. Here are seven steps that can help almost any company jump-start the innovation process. 

1. Make it about discovery: Start from a place of humility. Assume you may be unaware of many things that could ultimately make all the difference. At Liquid I.V., numerous teams are essential to the innovation discovery process, including consumer insights, R&D, design, marketing, finance, sales, manufacturing, and others.  

Everyone is involved, one way or another, in helping uncover the diamonds in the rough that will address consumer needs no one else has been able to address.  

2. Construct an innovation process: This means establishing ongoing methods to:  

• Track the latest research and trends in your industry or category. Be in constant touch with partners and suppliers. Float new “what if” ideas.  

• Remove the fear factor. Approach innovation with a mindset of confidence and encouragement that recognizes failures are a necessary part of the process. 

• Embrace the art and the science. For example, Liquid I.V.’s self-described “flavor developers” consider themselves artists at heart, along with being quants, creatives, and scientists.  

• Test and learn relentlessly. 

• Task teams with devising and regularly updating an innovation road map so there’s transparency into what’s on the table.  

• Stay agile so you can easily pivot as needed. 

3. Hold innovation summits: These imagination sessions bring together cross-functional teams in an environment of collaborative brainstorming. Liquid I.V., for example, embraces the notion that combining “ideas from everywhere” results in a far more diverse and productive set of ideas.  

4. Go long—and short: Long-term efforts focus on big, far-reaching innovations. Short-term efforts center around innovations of continuous improvement and resilience. At Liquid I.V., we think in terms of innovating new flavors, product line extensions, and even entirely new product categories. No matter what industry you’re in, the same general process can apply.  

5. Get finance involved: Consider setting specific incremental revenue targets that new innovations are expected to hit. That gives innovation teams tangible benchmarks to work with and goals to aim for.  

6. Make innovation a cultural commitment: Companies good at innovation constantly reinforce their dedication to pioneering new ways of thinking, addressing consumer needs in ways superior to competitors, setting the bar high, and aiming to leave a lasting mark.  

7. Aim for above and beyond: Don’t limit your thinking to what exists or what’s expected. Innovations should surprise and delight consumers. When you think you’ve nailed it, push for more. Liquid I.V.’s innovation teams constantly ask themselves: What might make this another 5 or 10% better?  

To stay on track, look for ways to constantly leverage the latest tools, resources, and power of forward thinking. For example, are there generative AI tools that can contribute to the innovation process by helping your teams work faster, smarter, and uncover insights hidden in your data?  

At Liquid I.V., we do not pursue innovation in isolation. It has a purpose, and that purpose is to elevate the vitality of people and the planet by adding value to people’s lives and solving problems that nobody else can.  

Mike Keech is CEO of Liquid I.V.

Source: Fast Company