There are three simple reason as to why you need to innovate

If your company’s future is restricted by present circumstances

If you do not occupy a significant position in your chosen market niche

If you want a way forward that will underwrite your company’s profitability and long term viability

* Costs escalating, profitability dwindling
* Pricing pressures from overseas
* Local competitors with better technology, facilities and equipment
* Market pressure from new products
* Outdated product range
* Market reach difficulties through shut out and new distribution systems
* Concerned about risks of development and potential for success.
* Lacking development resources, technology, experience

* Small local markets
* Lacking expertise in the product development process
* Limited opportunities to develop product development skills
* Industry support governed by technology push rather than market pull
* Lack of onshore projects
* Lack of product innovation culture
* Lack of finance

* Internal factors are product life cycles, the product range/mix and product cost.
* External factors are new competitive areas, changes in the trading environment and entry restrictions into the competitive market niche.
* Internal systems must recognise performance, products, profitability and customers
* Systems have to identify operating costs, fixed costs, process efficiency
* Product range innovation means modification of existing products, product cost reduction, improvements in product visibility, market repositioning.

* Tariffs, penalties for late delivery
* Regulations, with cost impacts for compliance, environmental, safety, recycling, disposal
* Market sentiment, changing attitudes
* Contractual impacts could include local content rules changes

We expect constant changes in the environment, market niches open and close, opportunities appear and disappear, market turbulence has to be monitored.
External factors are rarely controlled or influenced, innovative approaches promote creative responses that minimise impacts on operations, positioning and profitability.

* Competitive advantage is superiority in skills, resources and positioning
* Competitive positioning considers the areas of facilities, equipment, knowledge base, people, products and capabilities.
* Profitability and viability is influenced by competitive positioning, planning has to match objectives to these areas.

We all know profitability is the key to future operations, being able to fund new products, processes and entry into new markets.

Innovative product development means a focus on

* Global markets
* Product life changes
* Technological change
* Lean and mean organisations
* Windows of opportunity

Most importantly it means you can attract the people that you want

Innovation is the process of successfully introducing new ideas to meet defined business objectives. 

The innovation process involves:-

* Change and associated risk
* Extends across all company activities
* Uses a multi-disciplined team approach
* Provides the change that will sponsor the growth and prosperity.