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Value Creation Blog

If You’re Not Unique You Better Be Cheap – Enterprise Value

Posted by Josh Patrick

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Commoditization is everywhere.  If you manage to develop a new idea it’s almost sure to be copied and copied quickly.

The world keeps moving at an ever-increasing speed.  This puts the ability to innovate at a premium in any organization.  For those who can’t or won’t innovate your only option is to either develop a monopoly like business or join the race to the bottom and compete on price.

The good news is that innovation is something that can be learned and systemized.  If you don’t consider yourself an innovator there are tools that you can use that will help you on this quest. 

The first rule of innovation is to learn to fail quickly and cheaply.  You can count that not all of your ideas are going to work.  In fact, it’s likely that few of them will work.  A skill that is important to learn is to fail fast and fail quickly. 

You learn to fail fast and fail quickly by taking small steps.  We don’t have time to build a large model, see if it works, and then start over again.  We need to learn to take small ideas, see if they get any traction, and then make a decision to either implement or not implement the new idea.

Innovation can by systemized in your company.  Doug Hall at the Eureka Ranch has developed an entire suite of practices you can choose to help your company innovate.  Some people are better at working in a linear manner and others are better at non-linear thought.  There are strategies for each type of thinker. 

The best innovative organizations have both linear and non-linear thinkers on their team.  Dreamers are great.  It’s who we think are the only ones who are able to innovate.  At the same time dreamers often never get around to actually seeing if their ideas work.  That’s why we need a more balanced innovative team where linear thinking is also valued.

We need dreamers, doers, and analyzers on a team.  Each can innovate in their own way and each should have their own set of tools to work with that allow them to work within their own worldview. 

Innovation is hard work.  It’s not easy to do things in a new way or develop a new product.  Innovation requires that you get out of your comfort zone.  Not everyone enjoys getting out of their comfort zone.  We need to have everyone in our companies understand the need for innovation and that without it we all put our jobs at risk.

If we don’t teach our organizations to innovate we are making sure our companies will join the race to the bottom and have to be cheap.  I personally think that innovation is a better alternative.  How about you?

Josh Patrick

Innovation is not only used in product development.  It’s also needed in running our companies.  Click on the button below to get our special report on four tiered budgeting.  You’ll learn a simple and possibly new way to put together an operating budget in your company that will be used.

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Topics: for business owners, enterprise value, innovation

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