Reasons why you need an innovative culture in your business

Reasons why you need an innovative culture in your business

“Innovation is a myth.”      - Scott Berken 

Many may believe that innovation is a synonym for these big breakthrough inventions, therefore out of an average person’s reach. However, that is not the case. 

Innovation can happen anywhere and that includes our Smart City ecosystem. Below are the reasons for creating an innovative culture and how it is relevant to the Australian mobility landscape.

What is Innovation and how does it work?

By definition, innovation is the introduction of something new. It could be a technological breakthrough or the introduction of a new business model, but it could also be the renewing of existing processes and services. 

One of the most common misconceptions about innovation is it's synonymous with a particular type of personality or brand - like Elon Musk’s Tesla or Steve Jobs’ Apple. Our tendency to associate innovation with patentable innovations and game-changing breakthroughs is understandable given how the media often uses it in misleading ways.

In reality, innovation can be broken down into 4 different types :

1. Sustaining, 

2. Disruptive,

3. Incremental,

4. Radical. 

Technology newness refers to whether an innovation is based on emerging or well-proven technologies. Low- impact ideas are easier to implement while high-impact ideas tend to be costly and risky to develop but tend to come back with higher potential value.

  • Disruptive Innovation: Innovation that transforms expensive or highly sophisticated products into more affordable and accessible products to the broader public. (e.g. Netflix, Zoom, etc.)
  • Incremental Innovation: Small improvements to an existing product or service.
  • Sustaining Innovation: The creation of a better-performing product for higher products.
  • Radical Innovation: An invention that destroys or supplants an existing model.

4 reasons why businesses need innovation

  1. Competitive advantage

Competitive advantage refers to the conditions that put a company in a more favourable position than its competitors within the same industry.

Innovation enables organisational sustainability as it helps businesses react to changes by discovering new opportunities. Qualities of innovative nature allow businesses to keep their services and product relevant to their customers’ needs and the ever-changing market conditions. 

  1. Maximize ROI

While businesses enjoy an increase in their competitive advantage, it directly impacts performance and productivity.

Innovation allows businesses to constantly drive for different automated solutions that reduce the need for manual and repetitive work. As employees can focus more on important and value-creating tasks such as improving processes, conversing with customers and solving problems, it is more likely to reduce costs and provide better solutions for their customers.

  1. Positive impact on company culture

A culture of innovation helps drive and maintain a high level of employee engagement. 

A recent survey by Harvard Business Review discovered a strong correlation between innovation culture and millennials' engagement in the workplace, as they value opportunities for advancement and a working culture that encourages creativity. 

An innovative culture in the workplace is a way for businesses to leverage talent to succeed. When people embody a sense of possibility in decision-making processes, they are encouraged to embrace and pivot menial viable products which help businesses to continuously create growth in their values for customers.  

  1. Advances in new technologies 

The digitalisation of society has enabled the sharing of data between devices. This connectivity creates new business models and revenue streams. 

Innovative businesses are able to proliferate through the internet of things, social media platforms and cloud computing technologies. The development of new capabilities through software applications development enables businesses to embrace customer empathy and adapt to changes. 

Top 6 Innovation Trends in Transport in 2022

The transportation sector perfectly showcases an industry that is under constant rapid changes in technology and customer expectations. Here are the top 6 innovation trends in mobility this year:

  1. Autonomous Driving (AVs)

Self-driving or autonomous vehicles improves road safety by minimising human errors during everyday transportation. 

Due to the various advantages of autonomous vehicles, the market is therefore expanding rapidly. Prominent companies in the Autonomous Vehicles Market include Tesla, Microsoft Corporation, Alphabet Inc. and Ford Motor Company. 

  1. Vehicle Connectivity

Connected vehicles enable easy tracking of vehicular data that assists in improving road safety and predictive maintenance. 

The development of vehicle connectivity solutions opens up new business models in the mobility industry. This includes the exchange of data between vehicles (V2V), public infrastructure (V2I) and emerging ways to utilise vehicle data (V2X).   

  1. Artificial Intelligence

Artificial intelligence technologies explore the possibility of robotic automation within the automotive industry. 

The application of AI technologies such as machine learning plays a key role in the advancement of vehicle automation. Its endless potential in improving traffic efficiency and safety, as well as assistance in urban planning processes, makes it one of the top mobility industry trends this year.

  1. Electrification

The growing concern about climate change has led to the emergence of electric mobility solutions. Electric vehicles (EVs) help address issues that a gasoline car would normally encounter such as poor fuel performance and overheating, it also helps reduce gas emission. Therefore, it is not surprising that electrification solutions would be a new area for businesses to explore in 2022.

  1. Big Data & Analytics

Data-driven analysis enables the visualisation of traffic across the entire route network which allows city planners to identify traffic hotspots and improve road safety efficiently. 

The growing demand for big data solutions comes from its potential to provide a safer and more efficient transport means, as well as a more personalised transport experience. It is a growing paradigm and a strong attractor of global interest.

  1. Cloud-Based Transportation Management Systems

Cloud-based SaaS solutions aim to help transportation companies to offer easy services with minimum risk and cost of maintenance. 

Cloud-based logistic solutions help address communication hurdles that allow businesses to collaborate and share data more securely. It is universally accessible and is not confined to any physical spaces.

Nonetheless, innovation is easier said than done. It can be highly discouraging when many new ideas might not go anywhere. However, innovation can be learnt and the results can make a difference for your organisation.

Related articles

If you found this article interesting, you might want to check these ones out.

TL;DR: Australia's first Electric Vehicle strategy
Unpacking Electric Vehicles