“Removing Roadblocks on Your Path to Success”
Innovation Increases Market Share and Profitability
July ushers in summer parties and our American Independence celebration on the Fourth of July. We reflect on the many things to be grateful for living in a country founded on independent thinking. One of the hallmarks of independent thinking is business innovation. The process of innovation involves the imaginative and inventive transformation of an idea into a strategy, system, service or product that creates new or added value for its customers.
Evolutionary and Revolutionary Innovation
There are primarily two types of innovations in business: “Evolutionary Innovations” which are created by numerous incremental advances in technology over time and “Revolutionary Innovations” which can disrupt entire industries abruptly and permanently.
Once an innovation has been introduced in the marketplace, there is no going back. It is like a rubber band that has been stretched, it will never go back to its original shape. As a result, innovation requires accepting a very high level of risk because the creation of the strategies, systems, services or products from the innovation typically create new markets. Innovators can expect unusually large returns on their investment if they are the first to market, gain large market share rapidly or continue to innovate in spite of increased competition.
Creative Use of Resources
To be sustainable, the product or service must satisfy a specific need in the marketplace and be produced at an economical cost that is scalable in order to deter imitators. Innovation requires the creative application of new information, imagination and initiative. The innovation must yield greater value from new or alternative resources because the use of those resources did not exist in the same way before the idea was conceived.
Benefits of an Innovation Strategy
Having a comprehensive innovation strategy is paramount. The benefits of this process are demonstrated in the Pacific Crest Group case study “Strategic Planning Analysis Finds Two-Hundred-Thousand Dollars in Unbilled Revenue.” To foster ongoing innovation in its industry, the company’s strategic long-term goals and daily operations were aligned. Its accounting system was fully integrated and unprofitable business lines were phased out. In addition, new financial budgeting and forecasting tools were created that substantially improved reporting clarity and reliability.
Pacific Crest Group (PCG) provides professional services that keep your business focused on your critical objectives. We create custom made financial and Human Resource (HR) systems based on creative strategies that are always delivered with exemplary customer service. A PCG professional is happy to meet with you to discuss solutions for your unique requirements designed specifically to maximize all of your business opportunities.
About PCG Accounting Services:
Pacific Crest Group helps small and mid-sized businesses throughout the San Francisco Bay Area change their bookkeeping and accounting from a hassle to a strategic resource. We bridge the gap between your books and your business, so that you can intelligently manage your company.
Learn more about our accounting services!
About PCG HR Services:
We’re the most trusted company when it comes to outsourcing your HR functions. Whether it’s creating onboarding materials and employee development programs, or dealing with toxic employees, we ensure that your business is set up for short and long-term growth.
Learn more about our HR services!
If you have any questions about how Pacific Crest Group can help make 2015 a success for your business, drop us a line or call us at 415-461-2586!
Until next month, we wish you the very best and much success in your business.
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This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.
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