Russell Bell: Innovation key to keeping your business ahead of the market

Henry Ford (pictured at the wheel of his 1901 racing car Sweepstakes) patented the assembly line, and it soon began popping up in factories everywhere. Photo / Supplied

Opinion:

The market is competitive, we all know that, but what is really important is that you maintain your market edge.

This is especially the case when there are material external forces being brought to bear on your business. Whether it is what a client described to me as "Biblical plague" inflation levels (even though our Prime Minister refuses to call it a "crisis") or the ripple effect of war in Europe – your competitiveness is a more important tool now than it has ever been.

So, it is important that you find time to refine and improve your market offering – particularly ensuring you are delivering quality faster and more regularly than your competitors.

You always know that you have got something right when your business concept, idea and/or how you operate is replicated (copied) by a competitor. It is a sign you are the market leader, and it also is a sign that your innovative thinking is respected and, at the very least, you are seen as successful in your field. Take the word game Wordle; so many imposters have emerged with just enough differences so that the copyrights aren't breached – or they are based in jurisdictions that don't take intellectual property protection so seriously.

In general, where you lead your market, most competitors are a step-change behind you, so you need to ensure that you keep ahead and maintain momentum. To do this it is important to understand and move with the latest developments in your market. Market research is critical and essential, so you will need to invest time and effort in getting this done. I find that training and development opportunities often provide this avenue, but I also utilise a mentor and keep strong links with experts in their field.

It also is important to realise that, particularly where your business model is well established and has a permanence of presence, this also brings strength to your brand and confidence to your customers. But they also will have an expectation that you will be up to speed with what is happening out there. This is especially true in the field of technology.

Apple was/is the trailblazer in smartphones and, to me at least, its groundbreaking technology has been imitated by others, but the onus is on Apple to remain at the front. I probably won't change from Apple because their continued innovation means that I see them as a superior product.

Soon after Henry Ford patented the assembly line method of manufacturing, it began popping up in production lines everywhere. Indeed, some innovations have led further improvements that were the seeds of larger movements such as lean manufacturing and continuous improvement methodologies.

But don't put it past your competition to use any method possible to copy your idea; some actions could be potentially underhanded or even dishonest. I recall a documentary that highlighted people who are employed by companies to buy products, deconstruct them and communicate their secrets so competitors can play catch-up. Although the end message of the programme was, had these businesses stuck to their knitting (and invested that money properly in research and development) they would probably have innovated and gained ground in the market rather than being cast as perennial followers.

Your competition may also talk a good game, but as long as you innovate and are confident in your business model, talk is just that – talk. Take confidence from your own track record and successes and if you think you need to innovate to stay ahead, invest in it. Investment is just that, and it may take time, but true innovation is what will set you apart and develop strong revenue streams and margins.

The market will lean towards the innovator and established reputation, it always does. What the innovator needs to do is keep innovating, stay one step ahead and continue to be a true leader.