Rate of innovation is the amount of innovation produced by a company. Innovation can be small or big, it can be in products, services, processes, content, marketing, and sales. Rate of innovation can be measured by how many positive changes are added to the customer experience. It is related to the amount of experimentation and research – the more tests, experiments, and research is done, the more new products, services, content, processes, marketing and sales methods will be created.
To increase the rate of innovation a company should:
1) Make it clear to the team that innovation does not include only products, but also other areas: services, processes, content, marketing, and sales. Products are hard to innovate and some industries can not change the products. On the other hand, everything else can be innovated, as long as it improves the customer experience. Content, marketing, and sales are also the main elements of innovation, and if they are not innovated innovation will be blocked.
2) If one area of innovation is slowing down, increase innovation in another area. For example, if funding for product research is lowered, then increase experiments in content and marketing, or adopt new sales methods.
3) Monitor experiments in all areas and evaluate which parameters are resulting in innovation. Without quantifying the innovation process it will be hard to understand if the rate of innovation is dropping or growing, and at which speed. Drop or slowdown in the rate of innovation is a good indicator that the revenue will drop few year later.
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