Business evolution: why innovation is a vital part of sustainable success
Innovation is often seen as the lifeblood of progress, and in today’s changing world, it is both essential for – and driven by - sustainability. The second Evolving Business Masterclass (in October’24) explored how businesses can evolve through innovation, and that creativity and adaptability are critical not just for survival, but for thriving in a way that delivers against that all important triumvirate of profit, people, and planet.
What does innovation mean for businesses?
Innovation is about more than just big ideas - it’s about creating workable solutions and responding effectively to a changing environment. Whether it’s the creation of new products or refining existing processes, innovation drives real-world benefits such as:
Time and cost savings
Increased efficiency and profitability
Better resource use
Enhanced customer experiences
Innovation can lead directly to greater sustainability by enabling businesses to reduce waste, optimise operations and create solutions that align with environmental and social goals.
Sustaining vs. disruptive innovation
Businesses can approach innovation in two primary ways:
Sustaining innovation: Incremental improvements that enhance existing offerings, making them more efficient, effective, or sustainable – this is typically seen in larger, more well-established businesses
Disruptive innovation: Revolutionary changes that challenge the status quo, often creating entirely new markets or ways of working – often (but not always) seen in start-ups or entrepreneur-led/challenger businesses.
Innovation plays a pivotal role in achieving sustainability. It allows businesses to:
Think differently – are creatively – about their impact on people and planet
Develop products and services that address environmental challenges
Implement processes that reduce resource consumption and emissions
Enhance resilience and adaptability in a rapidly changing world
The benefits of an innovative mindset
Encouraging a culture of innovation within your business delivers far-reaching benefits, including:
Improved productivity and efficiency
Better recruitment and retention of top talent
Enhanced customer satisfaction and loyalty
A clear competitive advantage in the marketplace
Most importantly, fostering innovation directly supports sustainability by enabling businesses to adapt to new challenges and opportunities with creativity and purpose.
How to foster innovation in your business
Provide tools and resources:
Leverage technology, access grant funding, and adopt frameworks that encourage structured innovation.
Encourage diversity and collaboration:
Bring together diverse perspectives, allocate time for creative thinking, and promote continuous learning.
Welcome and reward Ideas:
Establish formal and informal channels to solicit ideas from employees, customers, and stakeholders, and recognise contributions that drive meaningful change.
Innovation is not just a competitive edge - it’s a cornerstone of sustainable business. By embedding innovation into your organisation’s DNA, you can create a resilient, adaptable, and purpose-driven business that will thrive in today’s changing world. Whether through small, sustaining improvements or disruptive breakthroughs, innovation empowers businesses to align profit with positive impact.